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Buying Kerosene With Tears - Politics - Nairaland

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Buying Kerosene With Tears by Abagworo(m): 4:11am On May 23, 2011
The supply of Dual Purpose Kerosene (DPK), widely known as kerosene, ebbs by 67 per cent out of the reach of many Nigerians. SENIOR CORRESPONDENT, Adeola Yusuf X-rays the pains the kerosene scarcity has brought to the kitchens of many homes and measures taken so far to cushion them.



For the umpteenth time, the Nigerian National Petroleum Corporation (NNPC) has declared that there is supposed to be enough Dual Purpose Kerosene (DPK) in circulation. The corporation’s Group General Manager in charge of Public Affairs Division, Dr. Levi Ajuonuma, who said this to dispel the ‘rumour’ of the scarcity of the product. He had, in one of the various talks with newsmen said the current scarcity is artificial. In many filling stations across Nigeria, where this product is dispensed however, there exists, long queues of kegs.

Unknown to many Nigerians, some marketers were said to be hoarding the product, which plays vulnerable role in the kitchens of over 80 per cent homes across the nation.

News about the scarcity however heightened as the daily supply of the product reportedly dropped by 66.6 per cent, prompting a major shift by many kerosene users to fire wood and other alternative means.

The scarcity of kerosene, it would be recalled, reached an alarming point, and housewives had to resort to using firewood, sawdust and charcoal to cook, while palm oil is used for lighting lamps.

An official of the Petroleum Products Marketing Company (PPMC), who craved anonymity, however, said that currently the scarcity is due to the stop in importation of kerosene; some marketers now rely on the company for supply. The development, according to him, has depleted the national stock of the product, thereby causing scarcity.

Sunday Independent gathered that one of the agencies of the government has been directed to give “an undisclosed million litres” of the product to marketers next week in order to mitigate the scarcity.

The Minister of Petroleum Resources, Diezani Alison-Madueke, who was said to have given this directive noted that the government was not folding its arms to watch some groups hold the people to ransom.


The deregulated product, according to the minister, is in stock and she called on the Department of Petroleum Resources (DPR) to send its task force after erring marketers, wondering why “innocents” Nigerians should be made to suffer for nothing.

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Austen Oniwon, who corroborated the minister’s view, promised an increase in the quantity of kerosene supplied to the corporation’s mega stations as a way of ameliorating the biting scarcity being experienced in all parts of the country.

Oniwon, who spoke in Abuja during a golf tournament to mark his 60th birthday, also said that the DPR was in a better position to explain why the product was not getting to the end users.

He said, “I have always made it clear from time to time that we have enough kerosene to meet the people’s need. We have enough to last more than 30 days.

We have been making adequate supply. We stop at bulk supply but the DPR is supposed to ensure that the product gets to the filling stations.

“What we have decided to do now is to increase the quantity we supply to our mega stations so that people can go there and buy quality product at a cheaper price.”

Meanwhile, the slow, but widening, scarcity of kerosene has been reported in various parts of the country. As a consequence, consumers have resorted to unhealthy alternative sources, like firewood, charcoal and saw dust in meeting their domestic and other needs.

In Abuja and its environs, price of kerosene, otherwise known as Dual Purpose Kerosene (DPK), has leapt by 100 per cent. A litre is now sold at around N180, from less than a hundred naira. At present, importation of kerosene is minimal and the reason is obvious. Bringing kerosene into the country is not worth its salt, because the environment is not that friendly to make easy return on the product. To access funds to get the product imported is another difficulty. The banking rule for loans now is draconian. How do you expect us to continue to import this product?” A marketer told our correspondent.

The daily demand of Dual Purpose Kerosene is estimated to be between eight and 10million litres. What is currently obtainable is put at less than five million litres. This is, however, elusive because of the low output of the nation’s refineries forcing Nigeria to import the product in order to supplement consumption.

The scarcity of the product is noted in all the markets in the 18 local government areas of Cross River State , investigations revealed.

“For close to a month now, the product was not found in any filling stations in this (Akwa Ibom) state,” a resident of Uyo told Sunday Independent.

A house wife, Dora Bassey, described the situation as pathetic and lamented that the consumers of the products suffer a lot. She called on government to intervene with a view to salvaging the situation. She regretted government’s inability to informing the people the real cause of the scarcity. The situation is getting worse by the day as the product is unavailable.

The scarcity has caused a hike in the pump price of the commodity, from N50 per litre, to between N180 and N200 per litre at filling stations and is sold for N200-N250 per litre in the black market. The cost of firewood has also gone up, too.

“But while the price of kerosene escalates, the major players in the industry, including the Pipelines and Products Marketing Company (PPMC), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Depots/Petroleum Products Marketers Association of Nigeria, continue to trade blame over the crisis. It is alleged that the PPMC is not adhering to the 60:40 distribution ratio between IPMAN members and depot owners, but the PPMC denied this,” a source said.

“The hiccups in the fuel markets lingered because it has not been fully deregulated and government’s stronghold on the supply base only makes matters worse. A subsidy regime that predicates local pump price on prevailing global oil price is prone to abuse and graft. Why is it difficult for the Federal Government to ensure local production of the product?” The source retorted.

“At the root of the kerosene scarcity is the domineering role of government, which discourages private sector investments and initiative. Currently, NNPC is the sole importer of the product, while refineries that refine kerosene have either shut down or are operating below capacity. This further underlines the need for private sector participation in petroleum refining business. It makes no economic sense to continue to import kerosene and other petroleum products when we are a major oil producer.

“Similarly, it is high time the government revived the coal industry, which has for decades been lying fallow in the south-eastern part of the country for lack of investment. This will, in many ways, serve as alternative energy source for Nigerians. The government should also encourage other alternative energy sources for domestic use-like bio-gas, solar energy and bio-fuel alternatives that are suitable to the Nigerian environment,” a civil servant in the state said.

It is untenable that low income earners already buffeted by high cost of living are being forced to spend more on kerosene or resort to fire wood with all its implication for the environment,” he disclosed. Part of the fallout of the scarcity is the rampant felling of trees to make charcoal and firewood. Most homes across the country, including urban cities, have taken to using charcoal as alternative cooking fuel, putting a question mark on the viability of the Federal Government’s ‘Plant-a-Tree’ campaign aimed at protecting the environment.

The smoke emanating from burning charcoal and firewood is known to be injurious to health. There are also reports of adulteration of kerosene, a dangerous and sometimes explosive mix that has already claimed lives in some states. Kerosene scarcity should be an embarrassment in Nigeria, the world’s sixth largest exporter of crude oil. Some depot owners who spoke under the condition of anonymity said they have no stock of the product.

It was also gathered that the scarcity of the product might be connected with inability of marketers to import kerosene into the country. In nearly all the local government areas in the state, a gallon of kerosene is being sold for N1,000 or more, in few areas where the product is scantily available.

Those who couldn’t afford gallons buy in bottles at N180-N200 each. A dealer on kerosene in Calabar, Mammy Edem told our correspondent that the scarcity of the product caused her to adjust her price.

In Cross River State, members of the public who use the liquid for cooking and lighting as well as other usages have resorted to the use of materials, which are dangerous to human health and the environment.

Investigation conducted revealed that the scarcity of kerosene has persisted for over a month, even when its sister products, petrol and diesel, are found in virtually all filling stations across the state. Consumers of the product bought it at cut-throat prices. A beer bottle of kerosene now goes for between N200 and N250, so most people resort to the use of saw dust and charcoal for cooking as fire wood is no where to be found given government policy on felling of trees.

Sadly, the product is not even found in hundreds of filling stations across the country. Surface tanks owners who had the product sold it at skyrocketed prices, such as N200 per litre. Besides the escalating prices, the few surface tank owners who had the product recorded long queues in the state capital. Consumers, however, search endlessly for the product. Some unscrupulous dealers have taken advantage of the situation to adulterate the commodity to make quick gains.

It was discovered that these unscrupulous dealers now mix the genuine product with undisclosed chemicals before selling it to unsuspecting buyers. This led to kerosene explosion in some instances.

James Umana, of 69 Ediba Road, Calabar, almost got burnt as the kerosene he bought from a hawker was adulterated. He said, when he attempted to ignite his stove after filling it with the commodity, he heard a very loud explosion, which consumed his stove to ashes.

“I thank God that I did not go too near to the stove because the result would have been devastating. For now, I resort to cooking with firewood until such a time when such product will be completely withdrawn from the market, because I don’t want to die,” Umana said. Most consumers lamented the scarcity of kerosene and blamed it on government’s lukewarm attitude of not minding the suffering of the people.

According to Mammy Edem, a housewife at 20 Chamley Street, Calabar, a user of the product, said getting kerosene at filling stations now is a big problem, and one doesn’t even see it to buy, as a bottle goes for between N220-N250. “If you look round, you will notice that only those who sell in surface tanks have the product. Imagine a bottle of kerosene, which is not up to a litre is sold at N220-N250, and a four litres goes for N1000-N1500. With the present power situation in the country, there is no way one would not use a lantern, while cooking has to be done on stoves, meanwhile, the price of candle has gone up, what kind of life is this?” She lamented.

She added, “Does this government want us all to die? If petroleum marketers are hoarding this essential product, government is expected to do something to alleviate the suffering of Nigerians. Officials of the NNPC contacted refused commenting on the issues as they dismissed our correspondent when the issue was introduced. Our findings revealed that kerosene scarcity is not only in Cross River State, but nationwide. Reports have it that it is difficult to get the product in most filling stations in Lagos and the south-western part of the country.

The story is the same in Abuja and other parts of northern Nigeria, sources said.

The story of scarcity is the same in 18 local government areas of the Cross Rivers State. People now resort to using firewood, sawdust and unavailable charcoal to cook their food, as well as using local lanterns made of clay and use palm-oil, to light their lamps in the night, while those in the city suffered when Power Holding Company of Nigeria (PHCN) seizes electricity supply.

The scarcity has increased prices of food-stuff as restaurant owners have increased the price of a plate of food which now goes for N350, as against N150-N200 a plate.

It is difficult to get the product in most filling stations in the state. A candle is N30 each as against N10-N15, due to the scarcity of kerosene. It was gathered that the scarcity of the product might not be unconnected with inability of marketers to import kerosene into the country. A source hinted that as at present, importation of kerosene is minimal and the reason is obvious.

“Bringing kerosene into the country is not worth its salt, because the environment is not that friendly to make easy return on the product. To access funds to get the product imported is another difficulty. The banking rule for loans now is draconian. How do you expect us to continue to import this product?” Our source hinted.

Transportation costs from one point to another have increased tremendously from N50 to N100 or more, depending on the distance, whereas the prices of garri and rice, the staple food of Nigerians in Cross River State has gone up by 100-200 per cent.

Drivers of government officials in the state, however, help the citizens, most of them car owners, working in the various offices in the governors’ office by siphoning fuel from their vehicles and selling it to them and others at a give-away price. This fuel, according to our source, is collected from government’s fuel dump every morning.

Sadly, the scarcity of the product has hindered not only the economic growth, but caused inconveniences as the long queues hinder traffic flow in the cities, making some streets impassable. Further checks revealed that some marketers hoard the products in anticipation of making huge profits if deregulation is effected.

Some marketers were already cashing on the chaotic situation to sell the Premium Motor Spirit, otherwise known as petrol, above the pump price of N65 per litre. Already, the scarcity has spread to central and northern districts of Cross River State. Though, the players in the industry claimed ignorance of the scarcity, some concerned citizens lamented the scarcity of the petroleum products and blamed it on the rot in the system of governance.

About 80 per cent of fuel being consumed in the country today is imported, and the import reception is in Lagos at the Atlas Cove, which means that about 70 per cent fuel being consumed in Nigeria comes from Lagos.

Sunday Independent however gathered that the deregulated product would remain a scarce commodity until the government brings back the four refineries to work to full capacity.

“And because of the way some unscrupulous Nigerians vandalise petroleum products pipelines, most petroleum tankers go to Lagos to bring products to other parts of the country, but unscrupulous marketers cashed in on the issue of deregulation and regulation. You know our people take the slightest opportunity to strangulate the market,” a source at the NNPC hinted.

Kerosene is a deregulated product and to rub salt on the wound on the hearts of many Nigerians who are faced with the scarcity of the product, it was learnt that while the daily national demand for the product remained at 12 million metric litres, the NNPC was currently releasing, through the marketers, only about four million metric litres for distribution to filling stations nationwide.

The NNPC is the sole importer of the product, which the Federal Government is subsidising to enable end users buy at the official rate of N50 per litre.

But the product, which sold for about N70 a litre for most part of last year, is now being sold for between N140 and N170 per litre, depending on the location.

Apart from the rising price of kerosene, which many households depend on for their cooking and other domestic chores, many consumers still travel several kilometres to buy it.

An official of the Major Oil Marketers Association of Nigeria, who requested not to be named because of the sensitive nature of the issue, said that the daily supply from the NNPC had dropped from 12 million litres to four million litres.

He said that NNPC was releasing the product to NIPCO Plc, a key operator in the downstream sector, which in turn was distributing it to the marketers.

An assessment of the quantity imported through the shipping position table obtained from the Nigerian Ports Authority showed that only three out of the 35 vessels expected in April carried kerosene, 22 vessels carried petrol, six vessels, diesel; and four vessels, aviation fuel; otherwise known as Jet A1.

A May edition of the table showed that out of 46 vessels laden with petroleum products, 25 vessels had petrol, 14 vessels, diesel; five vessels, Jet A1; and only two vessels had kerosene.

The major marketers and the NNPC have, however, disagreed on the causes of the prolonged scarcity of the product, with each of the parties blaming the other as being responsible for the debacle.

One of the marketers said only the NNPC was controlling the importation of the product and should be held responsible for any shortfall in the supply.

He said that the shortage in supply had paved the way for people to bring in the product through unauthorised sources, which had resulted in the product being sold at exorbitant price to desperate users.

He said, “We cannot import and sell at a loss because the government is subsidising its supply. It is only when deregulated that everybody will be free to import and sell at the market rate.”

Ajuonuma said: “NNPC has enough kerosene in stock and we are appealing to major and independent marketers to ensure effective distribution to end users.

“We have told them several times to ensure that petroleum products are taken from NNPC depot to the end users to end the scarcity of the kerosene.

“Marketers are the ones causing artificial scarcity to hike the price of the product.”

However, the independent marketers countered, saying they do not have enough kerosene in stock. Six marketers, who preferred anonymity, said the allegation that marketers were hoarding the product is not correct.

They said marketers would not deliberately hoard kerosene nationwide.

One of them who craved anonymity said that marketers would not want to join issues with NNPC, adding that the truth of the matter is that the cost of kerosene is high at the international market.

He said it is only the NNPC that can import sufficient kerosene to meet nationwide demand.

“Kerosene scarcity will persist in the country for as long as the high prices of crude oil in the international market persist.

“If there is scarcity, it means NNPC is not importing enough. It would have been easier for marketers to import if kerosene business was deregulated. Marketers will only dispense what they have and what sense does it make for us to have kerosene in our tanks and not dispense it? One marketer asked.

The product has become a scarce commodity nationwide and the price of kerosene has shot up in states such as Rivers, Kaduna , Bauchi, Lagos, among others. The price has risen by about 150 per cent.

A survey of some major filling stations showed that a litre of kerosene sells for between N150 and N180, against the official price of N50.

The government is not doing enough despite its claim of availability of the product in stock. DPR, which is supposed to make the supposed little effort by the government to be felt, is inactive in its duty to bring marketers who allegedly hoard the product to book.

Marketers, in the same vein, should denounce being put under the cover of anonymity to name who they think is culpable for the persistence scarcity of kerosene.

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