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Petrol scarcity: Kachikwu, IPMAN agree on major intervention measures

By on April 1, 2016

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have reached an agreement which would see IPMAN play a major role in the distribution of petrol to the hinterlands and state capitals in Nigeria, THISDAY learnt wednesday.

It was gathered from the General Secretary of IPMAN, Mr. Danladi Pasali, in Abuja said that the meeting which led to the agreement was held on Tuesday.

Pasali said that parts of what was agreed at the Tuesday meeting included Kachikwu’s acceptance to grant fuel import allocation licenses to IPMAN members with capacity to import petrol; improve petrol supplies to IPMAN-operated filling stations, as well as provide credit facilities for reliable members of the association.

The spokesperson of the Nigerian National Petroleum Corporation (NNPC), Mr. Garuba Deen Mohammed, confirmed to THISDAY that the meeting held. He also confirmed some of the agreements that were reached at the meeting including Kachikwu’s mediation and settlement of the lingering differences in the association.

“We are happy to tell you that yesterday, we had a meeting with the minister,” Pasali said.

He further said: “What we agreed is that he has now seen the importance of working with IPMAN and he has now agreed to give massive products to IPMAN members nationwide and he has also agreed to issue out importation licenses to IPMAN members which had been the practice in the past.”

Pasali claimed that IPMAN has the largest distribution facility in the country and as such was in a better position to work with Kachikwu to end the petrol scarcity which has continued to bite hard in city centres and fringes of the federal capital city, Abuja.

According to him: “You know that IPMAN controls 80 per cent of the downstream sector? We have also agreed to monitor our members to ensure that these products go to the nooks and crannies.

Pasali also talked about the decision of the meeting as it relates with the divergent ex-depot price of petrol which IPMAN had overtime complained about.

He said: “As at yesterday (Tuesday), we told him directly the problems we are having with the ex-depot price of petrol and that is that prior to yesterday meeting, 80 per cent of products was given to major and NNPC retail outlets and we have to be very frank and straightforward that we buy most of the products from third party and not at the ex-depot price.

“If he now agrees to give us directly, we are also going to monitor our members to comply with the government price, now that the minister has agreed to work with us, we have directed our members that anybody that loads NNPC products must sell at government approved price.”

On Monday, the NNPC said that it has set out long and short term strategic plans to end the petrol scarcity. These plans according to the corporation include ramping up of local refining, co-location of refineries by the existing ones, discussion with private investors to upgrade the efficiency of the country’s products transportation and storage facilities, as well as President Muhammadu Buhari’s approval of it to take additional crude oil volume to guarantee national supply of petrol.

The IPMAN scribe also spoke on Kachikwu’s disclosure to the Senate that he plans to invite two international companies such as Shell and Chevron, to manage the Kaduna and Warri refineries.

Meanwhile, THISDAY observed that the lingering scarcity has affected the cost of transportation in Abuja. A random sampling of residents’ expenditure on transportation in the last few weeks revealed that there were significant increases in transportation costs in the city.

It was gathered that fares to some places which used to cost N500 now costs N700, while that of commercial cabs that run from Wuse to Gwarinpa at N150 is now N200, and from Wuse to Maitama which was N100 is now N150.
Meanwhile, as fuel scarcity bites harder across the country, the Nigerian Labour Congress (NLC) yesterday said the current scarcity was deliberate to create different options such as privatisation and promote the interest of the business community.

The body accused the federal government of using the backdoor to create artificial scarcity in order to throw up options that fit into its planned privatisation strategy, a move; the NLC said was not in the best interest of Nigerians.

NLC President, Comrade Ayuba Wabba, in an exclusive interview with THISDAY, explained that the on-going fuel scarcity was a big disappointment and shame to the government, and failure on its earlier promises.

Wabba said: “It is deliberately to create scarcity that the present situation has remained. This particular scarcity is deliberate; government has no taken a proactive action to stop scarcity, so it’s deliberate. They have not done enough to prevent this scarcity.”

He decried the untold hardship Nigerians are forced to undergo due to the shoddiness of government in petroleum products distribution, stressing that, until government approach the current scarcity with all seriousness, the situation will remain dire.

The NLC president also maintained that the continuous excuses by Minister of State for Petroleum; Dr Ibe Kachukwu on the scarcity amounted to disservice to the nation, considering that, Nigeria should not be found in such critical situation.

Wabba stated: “It is about people taking responsibility, if he cannot handle it, those things can be handled effectively. The excuses the minister is giving, I don’t think Nigerians can continue to bear such excuses,” he said.

On the new move by government to concession the Kaduna and Port Harcourt Refineries to Shell and Chevron, Wabba explained that NLC position has been consistent, we are looking at what will make us create jobs. So, for now we have to study the proposal before we take a definite stand.”

 

[ThisDay]