Rising fuel price, scarcity caused by racketeers – FG

by Our Reporter February 8, 2023

written by Our Reporter February 8, 2023

The Federal Government has said that the rising cost and scarcity of Premium Motor Spirit across the country is as a result of marketers who engage in racketeering activities.

The Minister of State for Petroleum Resources, Timipre Sylva, revealed this while briefing State House correspondents on the outcome of the Federal Executive Council presided over by President Muhammadu Buhari on Wednesday, at the Aso Rock Villa, Abuja.

The minister also said that the council approved N117bn for the construction of the Oloibiri Oil and Gas Museum and Research Center, Bayelsa State.

Sylva said although the Nigeria National Petroleum Company Limited has ensured the supply of fuel nationwide, challenges persist at distribution points.

He explained that the ministry had issued directives to end racketeering which has led to soaring fuel prices. But those directives have fallen on deaf ears, even as supply bottlenecks persist.

Therefore, Sylva, again, directed the regulatory agency NMDPRA to sanction erring filling stations.

He said, “This is quite unfortunate, we are not happy at all about what is going on. Every hand is on the deck. As I said earlier, the Ministry of Petroleum is not in control of all the factors that lead to scarcity in the sense that there are Forex issues as well and other issues. But at the moment today, there is supply, but unfortunately, we are experiencing some bottlenecks with the distribution and movement of the product to various destinations for now.

“I want to assure you that everything is being done; the NNPC Limited, NMDPRA, the marketers, everybody’s hands is on deck to ensure that this problem is resolved and to also inform you today we had a briefing from INEC and INEC has also engaged NNPC and NNPC has assured INEC that petroleum products supply to INEC will not be a problem and so that will not likely affect the election at all.

“We have reports of profiteering by marketers, and I’ve directed NMDPRA to sanction anybody who profiteers on this kind of situation. I mean, we cannot stand by and watch our citizens being exploited by marketers. But of course, I’m given that directive and I don’t know if it has not taken effect. I don’t know the details of how far that directive has been carried out. But I’m going to still further give that directive, if that is still the situation, but definitely we are not paying a blind eye at all.”

On why the monitoring agencies in the ministry are not able to check the racketeering, the minister said, “There are laws. You know how these things happen, there are definitely laws and this is a democratic system. Of course, they can’t go against the law themselves, the regulators can’t also go against the law. So it is only through the processes provided for by law that this regulations can be carried out. So I will direct an NMDPRA further to ensure that nobody profiteers on the citizens of Nigeria.

In January 2023, the FG officially increased the price of petrol to N185 per litre, from N170 per litre.

Investigation by Champion reveals that petrol is being sold for as high as N500 per liter in some states.

The petroleum minister, who insisted that PMS is now available nationwide, blamed the scarcity on factors outside the control of his Ministry.

However, he said the distribution challenge would not hinder the February 25 and March 11 election.

Sylva said the NNPCL has assured the Independent National Electoral Commission that petroleum products would be available for the exercise.

Similarly, the minister said that the construction of the Oloibiri Oil and Gas Museum and Research Center was awarded to MSSRS Julius Berger Plc, it is expected to be completed in 30 months.

This comes six decades after oil was discovered in commercial quantities in the oil-rich region.

According to him, “This project has been on the drawing board for so long. The first time foundation stone was laid for this project was in the early 80s by President Shehu Shagari.

“So, this actually is a major milestone and it is expect to be a major legacy of Mr. President in the Niger Delta.”

End

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