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Petroleum Marketers Fault House Committee’s Report, Refuse to Pay back Subsidy

By on April 18, 2012

Petroleum marketers named in the Farouk Lawan led Committee on Fuel Subsidy report are up in arms and united in their indignation against the committee’s report which was leaked in the print and electronic media yesterday.

The report had named 69 companies, including Sea Petroleum and Gas (owned by the minister of Aviation, Stella Oduah), and said they were to refund N 229 billion, being monies they illegally benefited from subsidy.

One of the marketers, Acorn Petroleum released a statement all but condemning the report.

It read, “The Management of Acorn unequivocally refutes the said allegation as published in newspapers and as stated in the said report.

“Acorn is amazed at the basis of the findings contained in the unofficial report. This is because Acorn was never invited to appear before the House Committee during the probe, which gave rise to the purported report, to defend its position or provide information to support its subsidy claims.

“It is established principle and common knowledge that Importation of Petroleum products into the country cannot be undertaken without an import permit from the Department of Petroleum Resources (DPR) and a quarterly allocation from the Petroleum Products Pricing Regulatory Agency (PPPRA).

“The importation of PMS and any subsequent subsidy claims made thereon are guided by strict pricing templates initiated by the PPPRA to ensure the claims are transparent.  Flowing from this, any subsidy claims made by Acorn were made in the format approved by the PPPRA, according to the PPPRA’s norms, rules and regulations verified by appropriate government agencies; hence the issue of unmerited subsidy claims, as alleged, does not arise. ”

Acorn said it had  imported 247,021,133 litres of PMS into the country between 2010 and 2011 and is entitled to a subsidy claim of N14, 714,930,563.71. It has received N13, 678,424,555.45 to date from PPPRA with an outstanding claim of N1, 036,506,008.26 and these figures are verifiable in the Accounts of the company.

The statement adds, “Acorn with a petroleum storage facility of 30,000MT in Ibafon Lagos and retails outlets spread across the country has been doing business in Nigeria for over 30 years and joined the petroleum subsidy fund (PSF) scheme in 2008.

“Acorn assures all its stakeholders that as a good corporate citizen; it conducts and will continue to conduct its business in accordance with established rules, regulations and principles and in conformity with best practice.”

Observers are waiting for the official submission of the report from the committee so as not to jump to conclusions on the basis of the leaked media report. However it is uncertain if justice will be served as one of the President’s cabinet members is mentioned in the report.