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Nairaland Forum / Nairaland / General / Business / Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution (571 Views)
Dollar Scarcity: Petrol Price Hike Looms, Marketers Say / If You Know Any Filling Station Selling Above Pump Price(n87) Call These Numbers / Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution (2) (3) (4)
Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by sunexameh(m): 10:10pm On Jul 28, 2015 |
The Department of State Services, DSS,
may have taken over the job of
monitoring downstream petroleum
distribution and marketing, as part of the
President Muhamadu Buhari’s measures
to stem the high level of corruption in
subsidy claims.
Consequently, retail outlets found selling
any petroleum product above the
prescribed government price will be
immediately shut down, while any depot
selling above the ex-depot price will have
to forfeit the subsidy claims on the cargo
that brought in the product.
The move followed the apparent inability
of the industry regulators, the
Department of Petroleum Resources,
DPR, and the Petroleum Products Pricing
Regulatory Agency, PPPRA, whose officials
were apparently overwhelmed by the
supply shortages to check sharp practices
and market excesses among the
operators.
Consequently, the DPR has scheduled
another impromptu closed door meeting
with marketers and other industry
stakeholders today (Wednesday) at its
Headquarters in Lagos, to update them
on the new development.
Confirming the development yesterday, a
top industry source who also attended the
meeting told Vanguard in a telephone
interview that the decision was made
known to stakeholders at a closed door
meeting which held in Abuja on Monday.
The source, who spoke in confidence said:
“DSS will lead the operations (monitoring),
and marketers were also asked to
monitor each other and to report any
sharp practices. “Government decided
that enough was enough and will no
longer condone any sharp practices in the
system.”
The source, disclosed that the meeting
was at the instance of the Federal
Government, and had in attendance the
representatives of the DSS, DPR, PPPRA,
Major and independent marketers, depot
operators and a host of other industry
operators.
The source added that attendants sat for
long hours deliberating on the best way to
arrest the unofficial price hike of
petroleum products in the market,
occasioned by supply shortages following
the inability of the government to pay
markets outstanding subsidy claims of
over N200billion.
Sudden hike in price
The source was responding to Vanguard’s
enquiries on the cause of the sudden
unofficial hike of both the pump price and
ex-depot price of premium motor spirit,
PMS, popularly called petrol and
kerosene, and the helplessness of the
industry regulators to arrest the situation.
Since the supply shortages set in some
months ago, marketers and depot
operators took the initiative to hike pump
and ex-depot prices to reap enormous
profit while waiting for government to pay
off their outstanding claims.
As a result, practically every retail outlet
sold petrol at above the prescribed N87/
Litre, to peg price at between N100 and
N150/Litre depending on the outlet and
location.
Similarly, rather than the prescribed N81/
litre ex-depot price, marketers accused
the depot operators of selling at N96/litre
instead, which they claimed forced them
to also hike pump price.
He said: “Such practices will no longer be
condoned especially with the involvement
of the DSS, who will use their intelligence
network to get to the root of the matter.
“The meeting decided that all marketers
must sell at the regulated price of N87/
litre of petrol. And anyone found to be
selling above this, the DSS will track the
outlet to the depot where the product was
lifted.
“If it was discovered that the pump price
increase is as a result of hike in ex-depot
price, then both the outlet and the depot
will be sanctioned.
“Originally, it was agreed that both the
outlet and the depot will be shut down,
but after considering the situation, if was
agreed that the depot will not be shut
down in order not to exacerbate the
supply situation.
“However, the depot operator will be
made to forfeit his subsidy claims on that
cargo, as it will be assumed that he has
reimbursed himself through the ex-depot
price hike.”
“We are meeting with DPR again
tomorrow (today) on the same matter for
them to tell everybody what is happening
and the need for all to ensure
compliance,” the source added.
DPR meets with stakeholders
Expressing shock at the takeover of parts
of its functions by the DSS, a top
management official of the DPR
confirmed the upcoming meeting with
stakeholders in Lagos today.
The official, who also spoke in confidence
in a telephone interview told Vanguard:
“The Downstream Unit only informed us
about the meeting holding tomorrow at
about 4p.m. today.”
He expressed shock that the Unit did not
give them full disclosures on the reasons
for the impromptu meeting saying: “It is
sad that everybody now do territorial
claim when the whole roof is caving in. if
there are new developments we should
know firsthand and not from a third
party.”
Agreeing that the DPR was overwhelmed
by the sharp practices in the industry, he
asked: “How can we effectively monitor a
situation where the marketer shows us
technical proof about the depots selling
above the ex-depot price, and the depot
operators in turn show prove at selling
under the regulated price?
“We heard their accusations back and
forth, and decided to hold an impromptu
meeting with them in Lagos a few weeks
ago, which was also reported by your
paper. Since it was an open meeting, we
expected the parties to openly make their
allegations. But nobody did. So how can
we hold anybody responsible?”
He, however said that the involvement of
the DSS was a welcome development as
long as it will bring sanity to the system,
seeing that DPR lacked the capacity to
fully monitor downstream operations. |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by HungerBAD: 10:13pm On Jul 28, 2015 |
. 1 Like |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by Nobody: 10:21pm On Jul 28, 2015 |
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Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by Nobody: 10:31pm On Jul 28, 2015 |
C change |
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