Connect with us

Archives

Partial compliance as new fuel price regime takes off

Published

on

There is yet to be substantial compliance by fuel marketers in most parts of the country with the directive to dispense fuel at N86 and N86.50 per litre, investigation showed yesterday.

The exception is the Federal Capital Territory (FCT) where most marketers have adjusted their metres to comply with the new pump price of N86.00 per litre for premium motor spirit (PMS) at Nigerian National Petroleum Corporation (NNPC) filling stations and N86.50 at other outlets.

NIPCO petrol stations at Kubwa, Abuja were selling at N86.50 while the NNPC stations that were opened to customers all complied with the new price of N86.00 per litre.

The Total petrol station on Arab Road, Kubwa however sold fuel for the old price of N87 per litre.

Asked why the station was yet to comply with the new price, the attendant said: “We are waiting for the Department of Petroleum Resource (DPR) to come and adjust the meters.”

The Nation observed that although some stations were under lock and key, the product was not scarce, as there were no queues.

Retail outlets of major marketers, including Mobil, Conoil and Total as well as NNPC stations visited by The Nation in Lagos, complied while most of the stations owned by independent marketers sold at N87 per litre of PMS.

The Nation’s investigation showed that NNPC retail station at Ogunnusi Road in Omole, Mobil in Agidingbi, among other in Ikeja area of Lagos State sold at N86 and N86.50 per litre while Conoil station at Oba Adejobi Street, opposite LASUTH also sold at N86.50 per litre.

Most of the independent filling stations sold at N87 and above per litre. The station managers said they still had old stock and if they should sell at the new price, they would be selling at a loss as their margins were insignificant.

They vowed that subsequent supplies they would get would be sold at the new price.

The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, said members of his association were still selling at old price because they had old stock, adding that they would revert to the new price soon.

He said: “They are selling their old stock. Market forces will compel everybody to comply. People should see the policy as a policy that will unlock the sector.

“I am sure they will change to new price once they finish the old stock and work with the new regime of President Muhammadu Buhari. I think they will begin to think out of the box to move the sector forward.”

The Department of Petroleum Resources (DPR) warned that sanction awaits defaulters.

The DPR spokesperson and Assistant Director, Public Affairs, Mrs. Dorothy Bassey, said the government had ordered total compliance and any deviant station would be appropriately punished.

She said: “We have instituted effective monitoring team in place that will go out to monitor the level of compliance with the new pump price. Non-compliant stations will be appropriately sanctioned.”

Most of the fuel stations in Ejigbo, Mushin,Ketu and Ojota  in Lagos were closed.

Residents and commercial drivers said they had to resort to black market fuel sellers to buy fuel for their business at N150 per litre.

A commercial tricycle operator plying Jakande Estate gate, Oke-Afa and and Iyana Isolo, who gave his name as Suleiman Ariyo, did not understand why the filling stations did not open for business.

Most of the petrol stations in Ibadan, the Oyo State capital, which operated yesterday, continued to sell at N120 per litre.

However,the Nigerian National Petroleum Corporation (NNPC) mega station on Ojoo/Iwo Expressway, sold the product at the official price of N86 while a notable independent marketer, BOVAS, also sold at the official price of N86.50k to motorists.

There were no queues as motorists bought the product with ease.

Transport fares have already gone up in the state.

For instance, Ojoo to Iwo Road, which was N50, is now N100. When asked about the increment, a driver who simply identified himself as ‎Morufu, said that it had to do with the high cost of fuel.

He said: “I bought mine before the price crashed. I filled my tank and you cannot prevent me from making profit during this festive period.”

Fuel marketers in Benin, Warri, Asaba, Kano, Uyo, Osogbo, Ilorin, Akure and Jos were also yet to comply with the new price regime last night.

In Edo State, most fuel stations monitored sold at N140 while the NNPC mega station on Sapele Road sold fuel at the approved pump price of N86.

Total Filling station along Akpakpava sold fuel for N86.50k.

Many of the station managers declined comments when they were asked why they were selling above pump price.

 Long queues persisted in most filling stations in Kano as supply of fuel was low. Prices ranged between N110 and N115 per litre

A task force set up by the Kano State Government to ensure smooth sale of fuel directed filling stations not to sell more than N5000 worth of fuel to anyone.

 The committee has also embarked on night monitoring of the sale of the product.

The manager of a filling station, who did not want his name in print, said: “As we speak, most filling stations in Kano do not have fuel in stock. How do you expect us to comply with the directive to sell fuel at N86.50 kobo per litre?”

The situation was not different in Port Harcourt, Osogbo, Akure, Jos, Uyo, Asaba and Ilorin where fuel sold well above N120 per litre where available.

 A commercial driver in Port Harcourt said: “I hoped when I was leaving home this morning (yesterday) to buy fuel at N86.50k, but I have visited several stations at Mgbuoba and Aba Road axis with all of them selling at N150 and N140 respectively.

Many motorists in Ilorin travel as far as  Osun, Oyo and other neighbouring states to buy fuel in view of its scarcity in the Kwara State capital.

The state chair of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, said his members wee yet to switch over to the new price regime of N86.50k.

Okanlawon added that where available, members were still buying petrol at the old price.

“We will start buying the product at the new official rate before motorists in Ilorin will start enjoy the price regime from IPMAN members,” he said.

The three Nigerian National Petroleum Corporation (NNPC) mega stations in the metropolis were also put under lock and key.

There was partial implementation of the new fuel price in Jos, the Plateau State capital, with the NNPC mega station selling at N86 while other independent marketers still sold at the old price of N87 per litre.

When contacted, Mr. Douglas Ceaser, Comptroller of Jos DPR, said, “We are not aware of any new price.”

Nnamdi Okorigwe, a driver in Asaba, urged the Federal Government to ensure implementation of the new pump price, adding that many filling stations owners had resorted to hoarding fuel.

A source who spoke on behalf of independent petroleum marketers but pleaded anonymity argued that they (independent marketers) had not exhausted their old stock which they bought at exorbitant rates.

He said selling at government-approved pump price would have an adverse effect on their profits.

But the Department of Petroleum Resources (DPR) has already swung into action by sealing off a sales outlet owned by an independent petroleum marketer within Asaba metropolis.

Nation

Archives

WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

on

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

Continue Reading

Archives

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

Published

on

The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

Continue Reading

Archives

Wind Farm Vessel Collision Leaves 15 Injured

Published

on

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

Continue Reading
ADEBAYO SARUMI: Doyen of Maritime Industry Marks 80th Anniversary, Saturday 

Editor’s Pick

Politics