Owners of Petroleum Products Tank Farms in Ijegun-Egba, Satellite Town, Lagos, says the ongoing massive loading of petrol from the depots to all nooks and crannies of the country will ease scarcity.
Mr Debo Olujimi, the chairman of Tank Farm Owners Association gave the assurance on Thursday in Lagos while receiving direct petrol allocation from the Nigerian National Petroleum Company Ltd.,(NNPCL).
Olujimi said that the mission was to inform Nigerians that petrol is now fully available and its being sold at government regulated ex-depot price of N172 per litre in all Satellite depots.
The Ijegun-Egba depot has about five depots, namely Emadeb Energy Services, A.A. Rano Energy, Menj Oil, Ocean Pride and Rainoil.
According to him, In the month February NNPCL has allocated over 150 million litres of petrol to Satellite depots.
” We are assuring Nigerians that the product will be sold at regulated price and we have commenced massive loading to all states of the federation to ease scarcity.
“We want Nigerians to trust us on this business and we assured that the product will be distributed effectively as directed by government to ease scarcity and eradicate panic buying.
” In going forward the product will be sold at regulated pump price in all Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Marketers Association of Nigeria ( MOMAN) filling stations across the country.
“We have also directed that all depots within the satellite ijegun depot who sell above regulated ex-depot price would be sanctioned,” he said.
Olujimi explained that most of the depots within Satellite areas has a wider spread across the country, adding that this makes it easier to ease scarcity.
Olujimi who is also the Chief Executive Officer of Emadeb Energy Services said that the tank farms
located at Satellite Town play a very pivotal part in petroleum distribution in Nigeria, accounting for 35 per cent national petroleum product distribution.
According to him, the tank farms are an integral part of the petroleum product supply chain ensuring product supply, energy stability and energy security.
” We have played, and will continue to play significant roles in the supply and distribution of petroleum products across the nation.
“We want to give Nigerians assurance that petrol is available and we have started loading it out to various states and stations across nooks and crannies of Nigeria,” he added.
Olujimi explained that the lighting of product from mother vessel which usually cost $21,000 dollars by day has increased to $85,000 per day which is N850, 000.
He the process which often takes 10 days pose a serious challenge to depot owners in bringing petrol from offshore line to the depots
He said that in total, depots owners are spending about $1.2 million dollars to bring products from the offshore to the depot.
” He frowned at NIMASA and NPA who were charging in dollars, this has also increased the cost of shipment.
“Currently, the price has reduced, we encourage NNPCL to get additional vessel, at the moment the price is between $60, 000 to $65,000 per day.
“Some of us has taken the bull by the horn to encourage ourselves by selling the product at official price, even if the margin is small,” he added.
He said that the ongoing distribution of petroleum at official price was part of their contributions to society in their little way.
On smuggling, Olujimi advised all government agencies saddled with the responsibility at the boarder to live up to their expectation and bring the culprits to book.
He however called for total deregulation of the downstream sector of the oil and gas to create room for free market realities.
He added that the huge amount of money being spent on subsidy can be used to improve the country’s economy and emvamp other sector to grow.
In his remarks, Mr Mike Osatuyi, IPMAN’s National Operations Controller, commended the depots owners for the courage to sell petrol at regulated price to marketers.
Osatuyi said that “With this new price, have told my members that nobody should buy petrol above regulated price of N172 ex-depot, any depot that sell above regulated price should be reported to the government.
He expressed worried over sustainability of the supply to depot by government, adding it will be appreciated if it continues to ease scarcity.
“Today we are flagging off the direct loading for IPMAN members, we appeal to government for ensure sustainability of the product to our members.
” Our members were over 85 per cent of depot owners customers and we appeal to the authority to give IPMAN members little time to sell remaining stocks in our stations.
“IPMAN members are at every nooks and crannies of Nigeria because all the 21 depots of government are not working,” hw said.
He urged Federal Government to beef up product to Ijegun Egba satellite depot, adding that the depots are responsible for about 35 per cent of product distribution in Lagos.
“Government through NNPCL needs to supply the system with petrol continuously to bridge the gaps.
” Need product “Back to back supply and supply to tank farm owners in Ijegun satellite town to ease scarcity.
“IPMAN is account for about 80 percent customers across the country, this will ease supply and also create seamless operations.
He said that since government has agreed to supply petrol directly to its members at N172 per litres, we have also inaugurated task force that will keep watch over members that sell above regulated pump price.
He added that this will be a measure to checkmate deviance in the association.
“We have been complaining to government over the years to allocate petrol to IPMAN at regulated price because we have been buying at unofficial pricing.
“We are going to comply with government regulations on official pricing. We also urged government and depot owners to comply with official ex-depot price to marketers.
“We appeal to depot owners to put their house in other bucause we are going to report any depot who sell above regulated price N172 per litre to IPMAN members,” Osatuyi added.
Mr Ayo Cardoso, the Regional Coordinator, Southwest of the • Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the authority has been monitoring the system from the vessel to the pump distributions.
Cardoso said that “We have sufficient petrol in the system, l can assured you that in few days the scarcity will be ease off.
“As today the Inland depots has about 580 million litres, the offshore has about 690 million litres of petrol which means that we have about 1.3 million litre of petrol.
“This shows that we have sufficient fuel in the country which translated to 52-day stock sufficiency.
“We have issues with distribution and it’s been addressed to ease supply.
” We are also visiting stations to monitor distributions in other to checkmate marketers,” he said.
Mr Mohammed Koki, the General Manager, A.A Rano Terminals said the company is expecting about 26 million litres of petrol today and it will be distributed within four days.
Similarly, Mr Umar Aliyu, Terminal Manager, Menj Oil also acknowledged receiving 26 million litres of petrol and it has commenced 24 hours loading.
NNPCL has commenced direct allocation of petrol to IPMAN to cushion supply.
