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Fuel Scarcity May Continue, IPMAN Warns

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  • Fuel Scarcity May Continue, IPMAN Warns

The Independent Petroleum Marketers Association of Nigeria has warned that the ongoing scarcity of petrol, which started since December 2017 may continue if the right steps are not taken by the authorities to address the problem.

The Chairman, IPMAN, Western Zone, Mr. Debo Ahmed, who gave this indication, also said the NNPC had no capacity to meet the nation’s total petrol demand.

Ahmed, whose zone covers Oyo, Osun, Lagos, Kwara, Ondo and Ekiti states, spoke during a media briefing in Ilorin, Kwara State, noting that the NNPC had been the sole importer and distributor of petrol, a situation he described as a dangerous monopoly.

This, he said, was destroying the nation’s economy.

He said that fuel scarcity would only abate if the NNPC could massively import the PMS and distribute with IPMAN, Major Oil Marketers Association of Nigeria and the NNPC to all retail outlets or the corporation’s mega stations.

He suggested that 40 per cent should be allocated to IPMAN; MOMAN, 30 per cent; and the remaining 30 per cent to the NNPC (mega stations).

He appealed to the concerned authorities to make all depots functional to aid easy distribution of the product, adding that the NNPC should massively import petrol to address the scarcity in many parts of the country.

He said, “The fuel scarcity will definitely continue; there is no product in the system. The NNPC has no capacity to do the job they are doing now, that is importing petroleum products. Because of subsidy, they disallowed marketers from importing and as such the importation cannot meet the demand.

“The GMD of the NNPC said marketers were supposed to sell petrol at N145 per litre but where is the product to sell at N145? The product is not there. The little they have, the distribution system, which they are using now, has actually derailed the whole system of distribution in the country.

“They (NNPC) import 100 per cent; they will distribute 100 per cent; they will start selling at 50 per cent. According to them, they import the whole petrol we need in this country; they will now distribute it to both private and government depots that are working. They have their mega stations. Out of this allocation, they will give them 50 per cent and their mega stations all over the country are less than 700.”

According to him, IPMAN with 80 per cent of market share was allocated only 30 per cent of the imported fuel, adding that MOMAN with 16.5 per cent market share was allocated 20 per cent of the product.

Ahmed said, “With this distribution pattern, the NNPC/Petroleum Product Marketing Company is strangulating IPMAN members.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Economy

Oil Prices Decline on Rising COVID-19 Cases

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Global Oil Prices Dipped on Friday as New COVID-19 Cases Jump Globally

Global oil prices decline on Friday as the number of confirmed COVID-19 cases surged across the world.

Brent crude oil, against which Nigerian oil is priced, declined from $43.47 per barrel it traded on Thursday during the Asian trading session to $41.60 per barrel on Friday at around 11:39 am Nigerian time.

global Oil prices While the price of US West Texas Intermediate (WTI) crude oil dipped from $40.97 per barrel it traded on Thursday to $38.78 on Friday.

Oil traders and investors are worried that the rising number of COVID-19 new cases would disrupt demand for the commodity and force refineries to shut down once again.

“I do not suspect many oil traders will be looking to place significant bids in the market today, suggesting prices may continue to wallow into the weekend,” said Stephen Innes, chief global markets strategist at AxiCorp.

Despite efforts by both OPEC plus and other top oil producers to halt falling oil prices and reduce global oil glut, the lack of a cure for COVID-19 remained global concerns.

As previously stated on this platform, until a cure is found the world would have to find a way to either work through COVID-19 or shut down activities completely.

This is coming a day after the Federal Government of Nigeria announced that it was putting school resumption plan on hold following the latest COVID-19 report that shows Nigeria’s confirmed cases crossed 30,000 on Wednesday.

In the United States, more than 60,000 new COVID-19 cases were reported on Thursday, forcing lawmakers to start contemplating the second phase of COVID-19 lockdown.

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Economy

We Are Losing N13.9bn Monthly Because FG Caps Tariff – Discos

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Discos Says it is Losing N14bn Monthly Because of NERC Capped Tariff

The Nigerian power Distribution Companies (Discos) have said they a losing N13.9 billion in revenue every month because the Nigerian Electricity Regulatory Commission, limited how much they can charge for consumption.

Ernest Mupwaya, the Managing Director, Abuja Electricity Distribution Company, made the statement during a presentation on behalf of the Discos to the House of Representatives Committee on Power.

The statement was after the Discos demanded realistic indices before the implementation of the proposed service reflective tariff, which was supposed to be implemented on July 1.

Mupwaya said there were some outstanding requirements before the service reflective tariff could be implemented.

“One of them is the removal of estimated billing caps. The financial impact of the Capping Order is an average loss of N13.9bn monthly, thereby, undermining or jeopardising the minimum remittance requirement,” Mupwaya stated.

The July 1 service tariff implementation was halted by members of the National Assembly, who prevailed on the Discos to shelve the date to the first quarter of 2021 due to the current economic challenges in Nigeria.

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Economy

Gbajabiamila Says Nigeria Can’t Compete in AfCFTA With Weak Industries

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Nigeria Must Ramp up Industrialisation to Prevent Dumping by Other Nations

The Speaker of the House of Representatives, Femi Gbajabiamila, has said the nation can not compete effectively in the African Continental Free Trade Area (AfCFTA) with weak industrialisation and manufacturing activities.

Gbajabiamila disclosed this while receiving Adesoji Adesugba, the newly appointed Managing Director of the Nigeria Export Processing Zones Authority.

The details of the visit were made public on Thursday in a statement titled, “AFCFTA: House Speaker tasks Nigeria on industrialisation through free trade zones.”

Gbajabiamila was quoted as saying “We must act proactively so that we don’t become a dumping ground for other African nations.

“Our best option in this circumstance is to immediately set machinery in motion to ensure the effective functioning and flourishing of our export processing zones.

“We must remove all bottlenecks and perfect all stumbling blocks. We will then be fully prepared for AfCFTA and also generate massive jobs for our unemployed youths and enhance our foreign earnings.”

He added that the nation must as a matter of national emergency ramp up industrialisation through free trade zones and other effective means to compete with South Africa, Africa’s most industrialised economy and other African nations.

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