₦airaland Forum

The Executive Secretary of Petroleum Product Pricing and Regulatory Authority, Senator Farouk Ahmed, said on Tuesday that the fuel scarcity currently being experienced across the nation was caused by the two rounds of devaluation carried out by the Central Bank of Nigeria between November last year and February 2015.
The disclosure came just as officials of the Nigeria National Petroleum Corporation, and heads of some subsidiaries under it failed to appear before the Senate Committee on Petroleum ( Downstream) to defend their 2015 budget.
Chairman of the Committee, Senator Magnus Abe , lamented that by their action, they had deprived Nigerians an opportunity to know reasons behind the current fuel scarcity and possible way out.
But Ahmed, told the committee that the devaluation caused huge confusion in the oil sector as the petroleum agency did not know the exchange rate to be used for payment on fuel importation.
He said the marketers could not deliver the cargoes of fuel expected from them because they were not sure of the exact delivery cost as a result of the devaluation, adding that the old template used for paying the marketers was no longer useful.
Ahmed said PPPRA had to seek the advice of the CBN before it could eventually draw up a new template.
He, however, stressed that the crisis had eventually been resolved as the Budget Office on Monday approved payment for outstanding bills that the marketers are being owed.
He also said the truce was brokered after a meeting of the Ministry of Finance, PPPRA and other relevant agencies.
Ahmed said, “The recent events have to do with delay in the arrival of cargoes. Non-arrival of cargoes made it difficult for petroleum motor spirit to be delivered. What actually complicated it was the devaluation of naira – two times.
“The first one that took place on November 28 devalued Naira from N155 to N168 to $1. The second one that took place on February 18 brought the exchange rate to N199 to $1. “These two developments brought a lot of confusion into the oil sector.
“Marketers were not sure of the actual delivery cost. We had to draw a new template as advised by the CBN. The delay we have now is caused by the November devaluation. But the reality is that the policy is clear now.
“The Minister of Finance, PPPRA and other agencies are working closely to ensure that outstanding bills are paid. And that one had been done now.
“Yesterday, (Monday) we got an approval from the Budget Office for payment of all outstanding bills. We have adjusted the template now. We have to put the exchange rate at the interbank rate. Now, we have a direction”
Meanwhile, the non appearance of the the NNPC management to appear before the committee to give its own side of the fuel scarcity story, had prompted the committee chairman, to read a riot act to the corporation.
Abe said, “We invited NNPC to come and defend their budget. They didn’t show up. They don’t even have the respect to give any response to the invitation. We are directing the clerk to re-invite the NNPC, Department of Petroleum Resources, Pipeline Product and Marketing Company and all refineries.
“All of them must appear before this committee on Thursday. All of us have our roles in constitution. The letter should contain a a strong warning that NNPC must never repeat this before the committee.
“NNPC has never agreed to bring their budget for discussion. This is the same problem we have every year. I’m disappointed that after we agreed on this issue last year, we are still back to it.


Source.

http://www.punchng.com/news/naira-devaluation-causing-fuel-scarcity-ppra/

15hectares incase

The Clueless camp says it's opposition.

See their life?

I hate politics in this country.

GEJ was fast to accuse opposition as the ones behind the scarcity, hmmm

#where is our refineries? ??#

GEJ!!

The poster above me thinks every PDP member is GEJ

One thing i hate about this administration is their ability to point fingers.
If Naira falls, Its APC
If boko haram attacks, Its APC
If Fayose rigs election Its APC fault . Every bad thing that happens in the country is the fault of the opposition.

Can someone show this clarification to Muazu and other PDP minions?

Muazu u see ur life

We have a drunk as president.


GEJ till our youths get sense.

The blame game continues....

PDP will soon blame APC for the devaluation of the naira
..And the blame game goes on....

I refuse to be a slave to this useless government....securing my PVC to vote incompetence out!!

MzJackBaueress:
The blame game continues....

PDP will soon blame APC for the devaluation of the naira
..And the blame game goes on....

PDP will soon blame APC for Jonathan's impotence.

Nigerians,,,,,,, make una start to dey warm up for this Rain wey go come after 2015 elections cos na that time una go really knw the true situation of ur economy.

Them dey hid some certain things for una now so that dem fit win election.

And for those of una wey dey work for Bank "in TB Joshua's voice" I see as dem they serve many of una sack letter but if una go fit pray make oil price go up, god fit change him mind.

As for una wey dey do importation with LESS than 5million Naira in Alaba, Trade fair, Idumota esp those of una wey dey do groupage; hmmmm fear no let me talk the thing wey I see.

and for Farmers, this is the time wey una go Rejoice and sing" it is my turn to shine".

Why isn't this on the front page yet?

I don't see any reason why an important news such as this isn't on the front page. Mods, do the needful.

Shebi one mumu chairman from one useless party said APC was responsible ni?

wordcat:
Nigerians,,,,,,, make una start to dey warm up for this Rain we go come after 2015 elections cos na that time una go really knw the true situation of ur economy.

Them dey hid some certain things for una now so that dem fit win election.

And for those of una wey dey work for Bank "in TB Joshua's voice" I see as dem they serve many of una sack letter but if una go fit pray make oil price go up, god fit change him mind.

As for una wey dey do importation with LESS than 5million Naira in Alaba, Trade fair, Idumota esp those of una wey dey do groupage; hmmmm fear no let me talk the wey I see.

and for Farmers, this is the time wey una go Rejoice and sing it is my turn to shine.

Wow!