• Govt raises Q2 import allocations to 3.5m metric
tonnes


• Marketers to begin 24-hour service at filling
stations


• Govt to get N400m daily


Amid the lingering fuel crisis in the country, there
were indications yesterday from the Petroleum
Products Pricing Regulatory Agency (PPPRA) that
the product may be sold for N88 per litre at the
Nigerian National Petroleum Corporation (NNPC)
stations and N88.50 in other stations starting from
today.


Until this new template, the NNPC’s official price
for a litre of fuel was N86 while for others it was
N86.50. The new price mechanism that is expected
to take effect today is a requirement of price
modulation system that is reviewed every quarter.
The Guardian learnt that the proposal for the price
template for the second quarter of the year (April to
June) was tabled before the Minister of State for
Petroleum Resources, Dr. Ibe Kachikwu by the
PPPRA boss, Mrs. Sotonye Iyoyo early this week.
It could not be ascertained yesterday whether the
substantive Minister of Petroleum Resources,
President Muhammadu Buhari, who is attending a
conference in Washington DC in the United States,
approved the template before leaving the country.


According to an investigation by The Guardian, every
aspect of the template was retained except the
equalisation fund, which has additional N2 per litre
from the previous N4, making it N6.


The breakdown indicates that government is
expected to get N400 million daily as the country
still operates on over-recovery basis, which means
that Nigerians are paying extra N10 on every litre of
petrol they buy at the filling stations.


With an estimated 40 million litres of petrol
consumed per day, the Federal Government will
mobilise about N36 billion into the dedicated
account that is opened in the Central Bank of
Nigeria (CBN) for over-recovery funds in the second
quarter of 2016.


The price template on the PPPRA website that was
last updated on March18, 2016 indicates that the
landing cost of petrol stood at N71.49 kobo while
ex-depot (for collection) was put at N76.50 kobo.
But this is expected to change within the first few
hours of today.


Meanwhile, the Federal Government has increased
import allocation permits for petrol, from three
million metric tonnes in the first quarter, to 3.5
million tonnes in the second quarter.


The Minister of State for Petroleum Resources, Dr
Ibe Kachikwu, said it waded into the supply chain
with the Independent Petroleum Marketers
Association of Nigeria (IPMAN), as part of moves
to end the lingering fuel scarcity in the country.
The NNPC restated its commitment to boosting the
nation’s refining capacity, which in turn would put
an end to the perennial fuel scarcity in the country.


PPPRA spokesman Lanre Oladele disclosed that the
allocation was issued to NNPC and other private
fuel marketers.


Among the 47 companies to benefit from the
allocation are; Oando, Sahara Energy, Forte, Conoil,
MRS Oil and Gas, Shorelinks, Hyde Energy, Heyden
and the local downstream subsidiaries of
ExxonMobil and Total.


In the first quarter the regulator handed 78 per cent
of the allocation to NNPC and 22 per cent to private
companies and fuel marketers.


According to the spokesman, the allocation ratio
has been reversed in the Q2 programme, with NNPC
handling 41.7 per cent and private marketers 58.3
per cent.


In a related development, Kachikwu raised a 14-
man committee charged with the task of doing
everything possible “to bring back peace to the
IPMAN at the national, zonal and depot levels.”
In a meeting with members of IPMAN, yesterday,
the minister charged them to work with relevant
government agencies such as the NNPC,
Department of Petroleum Resources (DPR) and
other stakeholders to ensure that the prevailing fuel
scarcity “becomes a thing of the past as quickly as
possible.”


Speaking shortly after the deliberations, the National
Secretary of IPMAN, Danladi Pasali, expressed the
readiness of the association to assist the Federal
Government in bringing a lasting solution to the fuel
situation in the country within the next two weeks
as stated by Kachikwu during a recent meeting with
the Senate Committee on Petroleum Downstream.
The minister had assured the Senate Committee
that the lingering fuel crisis would be over within
the next two weeks.


Aligning IPMAN with this objective, Pasali stated:
“In the spirit of reconciliation and patriotism, we
have resolved to forget our differences and work
together towards providing products to our various
stations across the country in order to ease the
hardship on Nigerians.”


As the fuel scarcity lingers, commuters across the
country are still going through hard time in search
of fuel, as most filling stations in the metropolis
have no product to dispense. Apart from the Conoil
station opposite the NNPC Towers, NNPC mega
station on the Olu Obasanjo Way, Wuse Zone 1
Abuja and a few other stations, no filling station
was selling as at yesterday evening.


While blaming a lack of long-term planning for the
inability of Nigeria to build new refineries after
years of experiencing fuel shortage, former
President of the Petroleum and Natural Gas Workers
Senior Staff Association (PENGASSAN), Peter Esele
explained that the penchant of successive
governments for basing planning on ad hoc
arrangement had not done the country any good.
His explained: “Have we sat down to find out what
would be our energy need in the next 10 or 20 years
to come? Does Nigeria have a roadmap on how to
achieve self-reliance in petrol need in another 20
years? What is our future plan on how to move the
petroleum industry forward, apart from the omnibus
Petroleum Industry Bill (PIB) that has not been
passed in the last eight years? There is no national
goal on nearly everything Nigeria is doing.”


Therefore, Esele called on President Buhari to
develop a policy on the development direction of
the country in critical sectors of the economy.
He submitted that no businessman or International
Oil Company (IOC) would build refineries in the
country as long as government failed to remove
incentives offered by an importation regime.


“Why would anybody be interested in building
refineries when he knows he will make more money
through importation of petrol? It is time for
government to adopt a stick-an- carrot approach in
dealing with marketers,” Esele stated.


http://m.guardian.ng/news/petrol-may-sell-for-n88-per-litre-from-today/

The Price Is Still High Compare To What Is Been Sold Other Countries; Well The Price Is Quite Ok Compare To N150 In My Location Right Now

Some people like abusing this signature thingy!Just take a look at the nigga above me

I think this one is not product of april fool.

dats Gud

Am tired of all this may,will
but if fuel station truly sell at 87 naira
then kudos to pmb

J

may sell, may that, may this. kai its been horrible living in this shit hole of a country.

We are living in a mess, real mess, we just pray we don't get consumed one day. Why would refineries be built in Nigeria when those refineries would have to source for their personal power to power their machinery.

OP forgot to add April fool

Ok

Till then

This People are Observing April 1st

"May" na next month, we just enter April.