Tag: Petroleum

  • Petroleum Products Scarcity May Cause Mass Revolt, NLC Warns

    Petroleum Products Scarcity May Cause Mass Revolt, NLC Warns

    By Joyce Babayeju

    The Nigeria Labour Congress, NLC, has warned that the unending scarcity and outrageous prices of petroleum products across the country may lead to mass revolt, saying “there is an extent to which the people can endure the current hardship occasioned by the scarcity of refined petroleum products.”

    According to NLC, “There is a limit the people can stomach prevailing disruptions caused by petrol scarcity especially increased fares and associated dislocations in land, air, rail and water transportation and indeed hiccups in the manufacturing sector all linked to the current scarcity of refined petroleum products in the country.”

    In a statement by the President of NLC, Ayuba Wabba, titled “A Crisis Foretold! Local Refining of Petroleum is the Answer”, the Congress contended that the current scarcity and high cost of Diesel and besides the Premium Motor Spirit, PMS, commonly known as petrol, has exposed the failure of deregulation and importation of products.

    NLC insisted that only local refining of petroleum products is the answer to stable products prices and uninterrupted supplies of petroleum products across the country, saying “It is with great pain, sadness and alarm that the Nigeria Labour Congress observes the continued acute scarcity of petroleum products at different filling stations in the country. A crisis that started with the supply of sub-standard Premium Motor Oil (PMS) has now degenerated into a persisting scarcity of not only PMS but also other petroleum products such as Diesel and Aviation Fuel. It is deeply disturbing that motorists, keke operators, bike riders and other users of petrol products now spend incredibly long hours at filling stations before being serviced or sent away empty-handed. This is indeed a daylight premiere of unending episodes of nightmare.

    “Currently, a litre of aviation fuel sells as high as N580 while a litre of diesel goes as high as N625. In many parts of the country, a litre of PMS goes as high as N220. The socio-economic strain of both the scarcity and the high cost of petroleum products on ordinary Nigerians and manufacturing firms is best imagined. In many parts of Nigeria, manufacturing has ground to a halt. The current haemorrhage induced by the prevailing scarcity of petroleum products has very grave concomitant effects on the already parlous unemployment and security situation in our country.

    “The Nigeria Labour Congress has at different fora and through diverse media called the attention of the Federal Government to the grand danger of outsourcing our energy needs to foreign interests. We warned of the looming crisis of energy insecurity, adulterated petroleum products, capital flight, decline in productivity, de-investment in the Nigerian economy, massive loss of jobs and upsurge in criminality cum violence all over the country. The persisting scarcity of refined petroleum products has unleashed a tsunami of very dire economic realities including exorbitant airfare, cancellation of scheduled flights, destruction of thousands of automobile engines by adulterated fuel and wastage of productive hours. In short, today’s reality screams “Crisis Foretold”.

    “As clearly captured in the Nigerian Workers’ Charter of Demands, the only way out of this energy impasse is for the Federal Government to take very seriously the local refining of petroleum in Nigeria. We had severally identified the complete rehabilitation of our public refineries and the building of new refineries, both public and private, including modular refineries as the only sustainable panacea out of this national embarrassment and vulnerability in the security of our energy sector.

    With the current surge in the price of crude oil, we urge the Federal Government to make judicious use of the bumper harvest of petro-dollars to fix our oil refineries. We must re-think Nigeria’s hydrocarbon as a strategic asset for sustainable wealth creation and development.

    “We must now ditch the over-laboured gospel of deregulation which has been proved to be mere moniker for incessant increase in the price of petrol. The fact that NNPC cannot keep to its promise of 24-hour supply of petrol in advertised gas stations shows that the petrol importation policy has failed completely. Despite the claims that Diesel and Aviation fuel had been deregulated based on import model, the products are still scarce and expensive proving that deregulation is not the answer to the crisis in our downstream oil sub-sector. Now is the time to go back to the basics. Fix our local Refineries! Build new Refineries!! Local Refining is the answer!

    “The Nigeria Labour Congress wishes to reiterate its position as contained in the Nigerian Workers’ Charter of Demands that the government must adopt the policy of local refining and thus must rehabilitate our refineries.

    “The Nigeria Labour Congress and Nigerian workers are in solidarity with the Nigerian people all over the country who have been made to bear the brunt of a crisis that is not their making rather consequent on poor policy choices of successive governments and which has been compounded by inefficient and incompetent management of Nigeria’s oil and gas sector.

    “Consequent on the foregoing, the Nigeria Labour Congress cautions that there is an extent to which the people can endure the current hardship occasioned by the scarcity of refined petroleum products. There is a limit the people can stomach prevailing disruptions caused by petrol scarcity especially increased fares and associated dislocations in land, air, rail and water transportation and indeed hiccups in the manufacturing sector all linked to the current scarcity of refined petroleum products in the country.”

    The NLC president added that “This scarcity of refined petroleum products in our country must be treated as a national emergency. A stitch in time might still save nine!”

  • Petroleum products marketers lament over perennial closure of Enugu NNPC depot

    Petroleum products marketers lament over perennial closure of Enugu NNPC depot

    THE long closure of the Enugu depot of Nigerian National Petroleum Corporation, NNPC, is no doubt hitting hard on oil marketers in the South East who now source their products from far distances with the attendant risks involved. The depot has been shut for over 10 years running, inflicting serious hardship on the dealers and consumers of the products, without hope of when it would be reopened. Petroleum products dealers under the umbrella body of Independent Petroleum Marketers Association of Nigeria, IPMAN), at a meeting week back, lamented the agony they have been passing through getting products to dispense to their customers as they took turns to lament the negative impact of the long closure of the Enugu depot by the Federal Government. Activities at the once boisterous depot have been grounded for over a decade following the closure. The long closure has exposed marketers in the South East zone and beyond who used to load petroleum products from the depot to various risk such as accident on account of poor road network, robbers attacks as well as wear and tear suffered by their vehicles. At the meeting, summoned by the new executive committee of IPMAN led by Chinedu Anyaso, the marketers solicited the help of the South-East Governors in reaching out to the Federal Government to reopen shut down in 2001. Since then, oil marketers operating under the depot had resorted to travelling to Lagos, Port Harcourt, Warri and others far depots to lift products, a situation they said has left untold misery on them. Opening the floor was Anyaso, who thanked his colleagues for giving him and other executive committee members the opportunity to lead. He announced that the era of hostility in the union was over, adding that it was time to move on.

    “We are now under a new phase, a phase of peace, recovery and repositioning”, the new IPMAN President, Anyaso said, adding that it was also time to liaise with leaders of the Southeast, especially the governors and National Assembly Caucus to plead with them to urge the federal government to reopen the Enugu NNPC facility. He said that the long disuse of the depot has caused the marketers across the seven states that it covers enormous economic haemorrhage thereby forcing many of their colleagues out of business. He added that the ripple effect was that many people lost their jobs just as many businesses that had depended on the viability of the depot were as well forced to close up soon after the depot stopped functioning. Anyaso further lamented that several of their members had died as a result of health complications that arose from shock over loss of their investments through accidents, tanker fire, and hijacking of tankers by bandits among others. Corroborating Anyaso’s submissions, a former IPMAN Chairman and traditional ruler of Amandimeze, Ugama autonomous community in Ezeagu council area of Enugu State, Igwe Dr Harford Agana, noted that it has been hellish for marketers under Enugu depot as a result of non-functional state of Enugu NNPC Depot. He bemoaned the dormant condition of the deport pointing out that lifting products from far distances, exposes oil marketers and tanker drivers to immense hazards. “Our means of livelihood is under dangerous threat and I support the motion that we should cry to the government for help towards the resuscitation of the depot. “My most recent experience was in January 2019. I lost over N70 million when my tanker was involved in road crash with 50,000 litres of PMS, and I lost everything. The situation has caused us colossal losses. Everybody knows the terrible state of our highways, most of which are death-traps. That is the cause of repeated incidences of tanker falls, tanker explosion and all that. “We lift the Premium Motor Spirit, PMS, at N133. 28k official uniform price, per liter, and they still compel us to sell at government’s regulated pump price of N145.00 per liter. It costs us N360 thousand to transport a truck of PMS from Lagos to Enugu and N250 thousand to convey a truck from Calabar to Enugu, whereas, it takes just N30 thousand to transport same truckload of the product from Enugu depot to my station at 9th Mile Corner. We are sweating and we have to cry out”, Igwe Agana said. “It is to the knowledge of this house that my fully loaded tanker was once hijacked in Lagos by hoodlums who diverted it to Kwara State. By the time we traced the truck to Kwara, the criminals had sold everything but the skeleton of the truck which valued over N12 million at the time. But I was only able to sell the skeleton for N500 thousand. “Again, in November 2019, my truck that was carrying 60, 000 litres of PMS to our station fell down at Onyeama Hill, near Enugu. Luckily, it did not catch fire and some content was saved through the effort of men of the Enugu State Fire Service. I would have lost about N8 million to that accident, outside the value of the truck”, she said. On his part, the Grand Patron of PTD/NUPENG, Enugu branch, His Royal Highness, Igwe Murphy Chukwu, the traditional ruler of Oduma Achara in Aninri Council Area of Enugu State, noted that members were unanimous on the move to call on Southeast leaders for intervention. While expressing concern over the development, the monarch who owns Murphy Oil Nig Ltd regretted that the depot, which he said once burbled with economic activities and viability, has become a ghost of itself.

    “We are all concerned about the neglect of that facility,” Chukwu said, adding that “as we speak, most of my trucks are on transit to and from Lagos, Warri and others to lift fuel and my mind cannot be at rest until they return safely. This is what we go through on daily basis and you find that majority of our members are running high blood pressure as we speak. “We need that facility to be brought back to life, as a matter of urgency. I welcome the idea of meeting Southeast leaders for them to plead with President Muhammadu Buhari to review that old presidential order and direct that the depot be reopened”. He said that although he has never recorded personal losses in terms of accident, loss of lives, product highjack of truck, but that all members usually share in the sorrow of affected ones owing to the saying that injury to one is injury to all.

  • NCDMB, Waltersmith petroleum to construct modular refinery in Brass Island

    NCDMB, Waltersmith petroleum to construct modular refinery in Brass Island

    The Nigerian Content Development and Monitoring Board ( NCDMB), says it will partner Waltersmith Petroleum Ltd. to construct a modular refinery in Brass Island in Bayelsa.

    The Executive Secretary of the board, Mr Simbi Wabote disclosed this in a statement issued by the Board’s Management in Abuja on Thursday.

    He spoke at the commissioning of a modular science laboratory at Model Government Secondary School, Twon Brass and an Information Communication Technology (ICT) Centre at Government Secondary School Okpoama, both in Brass Local Government Area of the state.

    According to him, a number of investments opportunities are being considered by NCDMB for Brass Island.

    “They include siting a modular refinery in partnership with Waltersmith Petroleum Ltd. and utilising feed stock from the Nigerian Agip Oil Company, which operates in the location.

    “It is also a veritable location for even a dry dock facility or a floating dock facility.

    “NCDMB is currently studying a strategy for establishing and enhancing all the existing dry dock facilities to maintain our ships, light crafts and also expand our integration base in the country.

    “Brass Island development will force down oil production cost,” he said.

    He noted that the Island as a strategic location, had the closest point from where one could access many of the Floating Production Storage and Offloading (FPSO) platforms that operate off the shores of Nigerian waters, including Bonga main.

    Wabote said that some of the offshore oil and gas fields were currently being accessed from far locations like Lagos, with considerable cost implications.

    He said that developing and utilising nearby locations like Brass Island for oil and gas logistics operations would help the industry meet the recent charge by the Minister of State for Petroleum Resources for players in the industry to ensure a significant reduction in the cost per barrel of Nigeria’s crude oil production.

    “Part of the strategy is to site logistics requirements where it is easy to access, reducing time, fuel consumption and improving Turn Around Maintenance (TAM) time.

    “A serious study is going on currently to see the things that would be possible on the Island of Brass in order to bring down our cost of production.”

    commenting on the donation of a laboratory and ICT Centre to the secondary schools in Brass, he said that it was part of effort to build capacity of Nigeria which was in line with the mandate of the board.

    “Capacity building is one of NCDMB’s key objectives and the agency had decided to promote such efforts from the primary school level up to the university level.

    “So far, NCDMB had donated 25 ICT centres to secondary schools across the country and built the capacity of teachers in some states as part of its capacity building and corporate social responsibility programmes.

    “We believe in enhancing the quality of Science, Technology, Engineering and Mathematics (STEM) education.

    “It is sad that in some secondary schools, particularly in remote locations, students are taught these subjects without any practical experience.

    “Our strategy going forward is to encourage STEM education as well as ICT in secondary schools across the country.

    “These days every entrance examination is done online and if we don’t start inculcating those knowledge in secondary students, most of them will fall behind in meeting up with the ICT age,” he said.

    On strategies for maintaining the centres, Wabote explained that NCDMB had instituted a sustainability programme, which includes a one year management arrangement and training of staff and locals to operate the centres.

    He assured that NCDMB would run periodic assessments of the facilities and develop new strategies to sustain them.

    “We have a strategic objective and a plan to follow through on most of these centres we have established for sustainability. For us, it is an end to end thinking in most of these activities we are doing,” Wabote said. (NAN)