By Kris Obiaje

As the fuel crisis appeared to have defied all government tricks in the books and Nigerians continue to grind under its butt; the Buhari-led Federal government seems on many fronts to be losing grip on the ongoing imbroglio. Discordant signal apparently, is what emanates from the government oil corporation, the Nigerian National Petroleum Corporation, NNPC and the supervising Ministry of Petroleum Resources.

As the fuel crisis lasted, there have been accusations and counter-accusations between the two oil midwives and the marketers. The petroleum ministry and the NNPC has continually berated marketers for their complicity in the scarcity, stating that they are engaged in hoarding and selling of product above official pump price. The latter on the other hand, have stubbornly stuck to its gun; maintaining that as patriots and businessmen, they stand to gain nothing by hoarding petrol as they are in business to make a profit.

Not even NNPC GMD, Dr. Baru Maikanti's assurrance about a week ago that his agency has tamed the fuel crisis monster has given any hope or offer a feasible headway to easing Nigerians pains getting fuel to aid their daily business and personal affairs. Baru had spoken with newsmen in Abuja as he said;  "I'm happy to report that we have tamed the monster that reared its head as a result of the rumoured price increase about three weeks ago.

"Unfortunately, that rumour instigated a lot of marketers to be very greedy and they decided that their fellow citizens should not enjoy the Christmas holiday and New Year with ease and decided to profiteer, starting by hoarding and diversion of products.

At least in Akure the capital city of Ondo State, the drama rambles on without respite in sight.Transportion cost remain very high as transporters have double all inter and intracities routes fares; some as high as 200%. Baru magic wand's wave seem many miles dangling away from this shore.

The Department of Petroleum Resources, DPR tend to remain a toothless bulldog with very weak bite as it has only tried to snap and catch operation on irregular basis.

In one of its operations in the middle the passing week, the Agency had shut down about 24 fuel outlets in Akure,  and Ondo town  on. Its officials accused the outlets of dispensing the Premium Motor Spirit, PMS, above the official pump price. A constant effort such as this would have added pep to the fight against supposed oil marketers unpatriotic antics as this crisis lingers.

In the city, motorists - both private individuals and commercial transporters continue to keep vigils at Bovas petrol and Matrix oil outlets, as they are the only filling stations 'merciful' enough to have been dispensing the product at official pump price and at regular supply since the crisis reared its ugly head six weeks running now.

Other filling stations, though some with product, shut their gates in the day time for fear of regulators recent efforts and only open at nightfall to sell between N220 and N250 to reluctant, but hapless consumers. Other major marketers such as Oando and Total have also had snatches of dispensing activities during this period.

Matters came to a head in the middle of last week when Dr. Doyin Odebowale a Senior Special Assistant, SSA to Governor Rotimi Akeredolu on Special Duties and chairman of the State Taskforce on Petroleum had taken to the social media platform, Facebook, to accuse an official of DPR, Mr.  Emmanuel Adewole of aiding and abeting hike in fuel price. 

He had written; “I should like to reiterate the fact that the DPR in Ondo State and some elements who claim to be public servants are behind the menace. It was a so-called Director in DPR, one Emmanuel Adewole, working in conjunction with the so-called marketers, who are responsible for this wickedness."

Adebowale accused Adewole on live Radio of taking kickback and turning  blind eyes to the unscrupulous activities of marketers in the state.

But in swift reaction Mr Adewole came out to refute the accusation, submitting that the allegations were untrue; describing them as malicious and libellous. He said; “I can swear with everything I have, I have never received any bribe. Not that I am that comfortable but I don’t need it.

Fuel crisis: Deliberate ploy by FG to Hike Price - Fayose

Ekiti State Governor, Mr Ayodele Fayose, had came out had on the Federal government when the crisis began; reading the handwriting on the wall, Fayose said the current scarcity of fuel in the country was a ploy by the Federal government to justify the planned increment of petrol pump price from N145 to N185 per litre.

The governor, who accused the Federal Government of being insensitive to the plight of Nigerians, said; “Petrol is scarce across the country because the Federal Government deliberately reduced supply since it is only the Nigerian National Petroleum Corporation NNPC, that is importing the product.”

In a statement by his Special Assistant on Public Communications and New Media, Lere Olayinka, submitted: “Allowing fuel scarcity to persist for over two weeks when Nigerians are preparing to celebrate Christmas and New Year is the height of wickedness on the part of the All Progressives Congress, APC, Federal Government.

He said it was funny enough that instead of directing its anger to President Muhammadu Buhari, who is the Minister of Petroleum, on its December 7, 2017,  Federal Executive Council, FEC, meeting; rather choose to give the Minister of State for Petroleum, Dr Ibe Kachikwu seven days ultimatum to end the fuel scarcity.

Pehaps, Fayose was right! As feelers from government quarters points steadily to what he has forecast.

Federal Government Response; Discordant Tune on price Hike

Within the previous week, rumours were rife in town, coupled with several media reports that the Authority may have given marketers the leeway to dispense PMS at about N180 per litre. The hint as interpreted by keen observers of the matter, was dropped by Dr. Ibe Kachukwu, Junior Petroleum Minister, while appearing before the Parliamentary Joint Committee public hearing on the petroleum downstream last Thursday.

However, barely had the speculation began to circulate in the media and in town that Dr. Kachikwu, came out to denounce the reports that the Federal government was planning to jack up the pump price of petrol from its present fixed rate of N145 per litre.

The Director of Press in the Ministry,  Idang Alibi, in a statement on Thursday night, shed light on the Kachukwu’s submission made before the joint committee of the National Assembly.

He said the Minister of State for Petroleum Resources never mentioned or insinuated the need or plans by the Federal Government to increase the current pump price of Premium Motor Spirit, PMS.

The director reiterated what Kachikwu told the hearing, which was beamed live on NTA; that the Presidency has set up a special committee to identify the immediate and remote causes of the fuel scarcity with a view to finding both immediate and long lasting solutions to the challenge.

“The Committee has been in rounds of deliberations in the past few days and these discussions are still ongoing. The final decisions and recommendations from the Committee would be passed on to the President and Commander-In-Chief for approval”, said Alibi.

He had strongly urged the public and indeed stakeholders in the Oil and Gas sector to disregard any such report of a price increase.

Fuel subsidy by other means

The basis for the rumoured fuel price hike was Kachukwu's statement at the public hearing, declaring that the Nigerian National Petroleum Corporation, NNPC had incurred a cumulative loss of N85.5 billion in importing petrol and selling at the current retail price of N145 per litre, since October 2017. He said the price was fixed in the first quarter of 2016, when crude oil was selling for $49 and expressed fears that with crude price rising to $67 a barrel, the pump price, may no longer be sustainable.

In his explanation, the landing cost of PMS which was N133.28 per litre in 2016, is now N171 per litre and this has resulted into stoppage of importation of the product by independent marketers. He had concluded by stating that this had left the NNPC as 100% importer of the product.

The Minister disclosed further that as a result of the N26 difference per litre between the current landing cost of the product ( N171) and pump price of N145, NNPC which had been singularly importing the product at the volume of 25million litres per day since October last year, has been incurring a daily loss of about N800-N900million, cumulatively reaching N85.5billion today, in just three months.

The government, in his words are has mandated him and a committee set up, to find ways out of the problem until the local refineries become functional in 18 months time.

Ordinarily, the rising price of crude oil in the international market should be a source of blessing for a crude oil producing country. But for Nigeria, one the leading harvesters of sweet crude, the opposite is the case, as the country depends on importation for over 70% of its local refined petrol consumption need.

The Muhammadu Buhari-led administration having taken reins of government, had scraped the between N800 billion - N1. 9 trillion yearly petrol subsidy that was being paid by the administration of former President Goodluck Jonathan. But the revelation by Kachukwu now points to this government bringing back the Peoples Democratic Party, PDP's policy which the All Progressive Congress, APC condemned with glee while still playing the opposition and now that it is in government.

If the ruling All Progressives Congress, APC led government have paid N85 billion as price difference through NNPC in three months, how much of that could be sustained in a 12-month run? A four-quarter pay check of N85.5 billion will stand at N342 billion, a clear amount to make the ruling party eat its word on its criticism of PDP controversial subsidy 'scam'.

Back in October, 2017, the former President Jonathan would not let go without a fight on the issue. He had taken swipe at the ruling APC; accusing the party of lies and propaganda, saying, “My government was severely criticised for increasing the pump price of petroleum from N67 to N97 at a time that global crude price was going for over 100 dollars.

Jonathan said the pump price was later reduced to N87 when the price of crude oil dropped and according to him, critics of his government attacked him that pump price was supposed to have been lower. “Those who criticised my administration are not talking again now that the global crude oil is about 53 dollars per barrel and the pump price of petrol is N143,” Ikechukwu Eze, Jonathan’s spokesman, concluded in a statement.

President Muhammadu Buhari  was swift to hit back at Jonathan, saying, "our achievements are there for all to see." Buhari had reminded the former president that unlike his time when they chunk out between 800 billion and 1.3 trillion Naira as ‘subsidy’ yearly in their time, without making the products available even at regulated prices; his administration was not paying any subsidy, yet the product was available and queues have disappeared from the filling stations.

The claim by the president seem to have been punctured by events since the beginning of the current fuel crisis and the revelations which has come forth.

Chaotic Way forward

Kachukwu had said the Authority was contemplating three curious solutions to stem the tide.

He submitted that the first option is for the Central bank of Nigeria, CBN, to allow the marketers access forex at the rate of N204 to a dollar as against the official rate of N305 to keep the pump price of fuel per litre at N145.

The issue with this policy is that the government may just be getting itself into a fix all over again by creating disparity in its Forex policy. Recall back in August 2016, when the Federal government instructed Nigerian commercial banks to provide Forex to the country’s intending Hajj pilgrims at N197 per Dollar and a similar  largess later handed down to Christian pilgrims heading for Jerusalem at N160 per Dollar? The country may just be riding toward that tortuous road again; as citizens rose in their numbers in criticism against the government for dabbling into matters of personal conviction such as religion to the apparent neglect of matters of national socio-economic relevance to citizens.

The stumper is: if oil marketers are offered forex holiday, what happens when other categories of business people who are contributors to the country's national GDP feel shortchanged and begin agitation for similar preferential treatment? Or perhaps, since petrol is the life wire of the nation's economic engine, all will be quiet and smooth with the consideration?

Secondly, Kachukwu said government may give room for modulated deregulation where NNPC would be allowed to continue selling at N145 per litre in all its Mega stations across the country while the independent marketers should be allowed to sell at whatever price is profitable to them in all their outlets.

The second option, to discerning minds is nothing but a call to chaos, anarchy and displacement in the oil industry. If the government is intended on deregulation of the oil industry, it should take the bull by the horn and fully deregulate. Why must Nigerians be put to pains and suffering and at the mercy of oil marketers.

 To begin with, how evenly spread are these so-called NNPC Mega stations that may be mandated to continue to dispense at official pump price? How many are there in each state of the federation and in how many of their cities? And these considerations equally includes those glorified independent marketers who have had their outlets now drown in NNPC 'Mega station' colours; notwithstanding, whatever franchise agreement or monitoring being put in place to ensure they stick to the mega station's operational modalities? The government should come out clearly with its policy on fuel price and perhaps do what Gov. Fayose had 'prophesy' it would do - increase pump price and ensure uniformity!

The Buhari-led government according to the Junior minister, is to look at the direction of blanket subsidy for all the importers in bridging the gap which, according to Kachukwu, "would be like going back to a problem that had earlier been solved “. A problem this government may not have gotten grip on. For if it has, the country would not be going through what is it at the moment.

Kachukwu, however, stressed that the final solution to the problem was for the nation to put her refineries in good shape in a way that 80% of local consumption of the product should be provided for locally.

This was Kachukwu's conviction while appearing before the National Assembly Joint session, saying it was a shame that Nigeria cannot refine its crude oil after 40 years of activities in the downstream. He said the ministry and the NNPC were working round the clock to find a solution to petrol scarcity. As part of the solutions to permanently end the scarcity, Kachikwu said the country’s refinery needs to be functional.

“Ultimately what this country needs is to have its refineries working and I have said that it is shameful that after 30, 40 years of activities in the downstream, cannot produce sufficient (petroleum products). I have said nobody sells crude in its form in the world and we have to have the technical capacity to do this.” he had concluded.

But with no concrete plan in sight to end the deadlock, the question is; has this government lost grip on the fuel crisis? And how long shall Nigerians endure the curse of its own blessing - oil?

Source: http://businessondo.com/fuel-crisis-federal-government-helpless/

FG can't be helpless. If the FG can search for oil with millions then it should build a refinery that can match Dangote's.

Helplessness aided by incompetence

Buharibis incompetent PERIOD!!!!