NUPENG, PENGASSAN Divided Over Planned strike

NUPENGThere appears to be a division between unions representing oil workers in Nigeria.

This comes ahead of a planned strike to protest the alleged unfair treatment of oil workers.

The South West Chairman of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Tokunbo Korodo said a meeting with representatives of the Federal Government, which was scheduled to take place on Thursday has been shifted till July 11.

He noted that NUPENG remains open to the option of dialogue to ensure Nigerians are not made to suffer unnecessarily.

However, the National Public Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Emmanuel Ojugbana, confirmed to Channels Television that all is now set for the planned strike.

He added that the gradual method of shutting down activities and operations in the oil and gas sector is being adopted by its members.

He also said the Department of Petroleum Resources (DPR), the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF) will also be affected during the strike.

Nigerians Urge DPR To Enforce Fuel Price Reduction

pump_priceThe Department of Petroleum Resources (DPR), may have to move into the field and enforce compliance with the new pump price of N87 per litre.

As most service stations located in interior areas in Lagos and Ogun States are still selling petrol at 97 naira per litre in spite of Federal Government’s directives.

Those who offered to speak to us off camera explained that the product they have is the old stock, and so it therefore cannot be sold for N87 per litre.

The Minister of Petroleum Resources, Mrs Dieziani Allison-Madueke had announced a drop in the pump price of Premium Motor Spirit, popularly known as petrol from N97 to N87 due to the drop in global crude oil prices.

“As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this the importation prices of our petroleum products have been impacted.

“Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit (Petrol) from the current Ninety Seven Naira (=N=97) per litre pump price down to Eighty Seven Naira (=N87=) per litre pump price, effective from twelve (12) midnight Sunday, 18 of January 2015.

“Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Department of Petroleum Resources (DPR) to ensure strict compliance of this price adjustment by all marketing companies”, she said.

The Minister gave the directive during a press conference at the Presidential Villa, Abuja on Sunday, January 18.

FG Reduces Petrol Pump Price From N97 To N87

PowerThe Minister of Petroleum Resources, Mrs Dieziani Allison-Madueke has announced a drop in the pump price of Premium Motor Spirit, popularly known as petrol from N97 to N87 due to the drop in global crude oil prices.

“As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this the importation prices of our petroleum products have been impacted.

“Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit (Petrol) from the current Ninety Seven Naira (=N=97) per litre pump price down to Eighty Seven Naira (=N87=) per litre pump price, effective from twelve (12) midnight Sunday, 18 of January 2015.

“Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Department of Petroleum Resources (DPR) to ensure strict compliance of this price adjustment by all marketing companies”, she said.

The Minister gave the directive during a press conference at the Presidential Villa, Abuja on Sunday.

As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this the importation prices of our petroleum products have been impacted.

Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit (Petrol) from the current Ninety Seven Naira (=N=97) per litre pump price down to Eighty Seven Naira (=N87=) per litre pump price, effective from twelve (12) midnight Sunday, 18 of January 2015.

Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Department of Petroleum Resources (DPR) to ensure strict compliance of this price adjustment by all marketing companies.

It is my hope that all Nigerians will benefit from this adjustment.  I thank you and God Bless you all.

Petroleum Minister Approves Release Of 2015 Q1 Fuel Allocation To Marketers

PowerThe Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has approved the release of  2015 Q1 allocation to marketers for the importation of petroleum products.

A statement issued by the Petroleum Products Pricing Regulatory Agency (PPPRA), said the early release is in furtherance of the Minister’s resolve at ensuring continuous and robust products supply in the system.

According to the statement, the Executive Secretary of the PPPRA, Mr. Farouk Ahmed, while calling on motorists not to engage in panic buying, assured that, “there is ample supply of petroleum products in the country”, adding that “discharges and truck-out had continued in spite of the holidays and the festive periods”.

The PPPRA further explained that apart from facilitating an improved national Premium Motor Spirit (PMS) supply and stock build-up, the effort is also to enable marketers make adequate preparations towards products sourcing and importation early in the New Year.

“The Petroleum Minister had commenced a regime of early release of quarterly PMS allocations in addition to supplementary allocations to complement the national demand”, the statement added.

According to the PPPRA, the early approvals, “apart from providing additional imports to supplement the prevailing stock level in the system, is now responsible for the sustained availability of petroleum products across the country at regulated prices”.

 

Senate Warns PPPRA Over Return Of Subsidy Fraudsters

The Senate Committee on Petroleum Resources Downstream have warned the Petroleum Products Pricing Regulatory Agency (PPPRA) to beware of the return of fraudsters in the fuel subsidy scheme.
Speaking during an oversight meeting, the Chairman of the Senate Committee, Senator Magnus Abe commended the agency for cleaning up the fuel subsidy scheme by reducing the number of oil marketers from 142 to 38 as at December 2012.
The Executive Secretary of the Agency, Mr. Reginald Stanley had added that local consumption of Premium Motor Spirit (PMS) has also been brought down from 60.25 million litres per day in 2011 to 40 million litres per day in 2013.
Mr. Stanley added that claims for all cleared transactions for the last quarter of 2012 are being paid while the 2013 transaction reimbursements are in progress.

PPPRA suspends Nimex Petroleum over subsidy documents

A Swiss-based oil firm, Nimex Petroleum has been suspended by  the Petroleum Products Pricing Regulatory Agency (PPPRA) for failing to provide original documents for the importation of fuel and subsidy claims.

Nimex Petroleum confirmed on Wednesday that PPPRA had suspended its activities in a letter dated May 3 over missing documentation relating to the delivery of two shipments of around 10,000-12,000 tonnes of gasoline.

At current market prices, the subsidy payment due for the shipments in question is worth around $10 million.

PPPRA is one of several agencies indicted for overseeing a fraudulent scheme that paid out large sums in fuel subsidy claims for fuel that was not imported or was sold abroad.

According to a recent probe by the House of Representatives ad-hoc committee on the mis-management of the fuel subsidy, the schemes around the importation of refined fuel is estimated to cost the country $6.8 billion between 2009-2011.

Nimex said it had sent the PPPRA copies of documents – rather than originals as requested – because some banks were holding the original papers as credit until the subsidy payment was received.

“The originals are in the banking channel,” Nimex’s general manager Oliver Hess told Reuters, adding the bank would hold the documents until the regulator had paid out the sum due for the shipments.

But the bank would not release the original documents until the regulator had paid the subsidy, Hess said, creating a situation in which the oil firm was going around in circles to obtain the missing documentation requested.

Two Nimex employees were travelling to Abuja with most of the original document requested, Hess said, adding the firm hoped to resolve the dispute by Friday.

The investigation disclosed that 18 firms never produced the documents required to prove the subsidy funds received from the government tallied with the amount of fuel they had imported.

The federal government tried in vain to end fuel subsidies in January, but a week of public protests forced the government to partially re-instate the payments, seen as a drain on its budget.

 

NNPC denies allegation of fuel subsidy report

The management of the Nigerian National Petroleum Corporation (NNPC) has denied allegations raised by the House of Representative committee probe which indicted it along with other agencies for mis-managing the sum of N1.067 trillion involved in the fuel subsidy scheme.

A press statement on Sunday by the group general manager group public affairs division of the corporation, Dr Levi Ajuonuma denied the allegation that the company made simultaneous withdrawals from two different sources to recover it subsidy claims.

The Farouk Lawan-led House of Representatives ad hoc committee on the subsidy regime management, while submitting the report indicted the NNPC, the Petroleum Products Pricing Regulatory Agency (PPPRA) and some oil marketers and called for a refund of N1.067 trillion to the nation’s treasury.

The committee also asked the NNPC to refund the over N310.42billion deductions it took illegally as subsidy arrears for kerosene supplied in 2009 and 2010, pointing out that this was made in spite of a presidential directive specifically addressed to the minister, who is also chairman of the NNPC Board of Directors.

Alluding to a part of the report which accused the NNPC of withdrawing from two different sources simultaneously to recover it subsidy claims, Dr Ajuonuma stated that “the corporation at no time made such double withdrawals”, adding that “such a claim is totally unfounded and absurd.”

The group challenged the Central Bank of Nigeria (CBN) and the ad hoc committee to provide evidence that the alleged payments were made to the corporation. “They must show authorisation for the payments as well as breakdown of the amount, purpose for the payments, beneficiary accounts in which such payments were made and the utilisation of such payments” it demanded.

The NNPC spokesman explained that rather than collecting such payments from CBN, the corporation applied such subsidy approvals as credit due to the corporation towards the cost of its domestic crude allocation.

He noted that “subsidy payments to NNPC is not based on cash remittance.” “The mechanics of subsidy recovery by NNPC is not fund-based but by way of deduction form crude cost due” adding that “the commencement of the subsidy regime there was never a time when CBN paid any money to NNPC in respect of subsidy claim.”

Dr Ajuonuma lamented that despite the presentation of all the necessary documents and information to the probe committee, such “unfounded allegation against the corporation.”

“For instance, NNPC presented to PPPPRA approvals for 2011 totalling N81billion out of which only N844.9billion has been credited to NNPC. But surprisingly the committee claimed that PPPRA approved only N504billion and that the balance was excess payment to NNPC .what logic,’’ he asked.

The oil company after reviewing the report insists that “the committee seems not to be sure of its action as its intention was really not to clarify the subsidy payments but more interested in maligning and damaging the reputation of the corporation as well as other key players of the industry.”

He also picked holes in the committees’ query of NNPC deduction of subsidy payment as a first line charge.

“The basis for the deduction of both cash calls for joint venture operations and NNPC’s subsidy payments as a first line charge on the income of the federal government is statutory and founded on the appropriation act which was passed by the national assembly. Under the said appropriation act, certain budgetary items including subsidy payments to the NNPC are listed as first line charges on the income of the federation,’’ he explained.

He further adds that “the committee accepted the cash call as first line charge yet alleged that the subsidy aspect was illegal.”

Dr Ajuonuma stated that “it is clear that the tune of the committee’s report is not only damaging to the corporation but to the entire nation.”