NEW measures have been introduced by the Nigerian National Petroleum Corporation (NNPC) to check the scarcity of aviation fuel (JET-A1).
Instead of leaving the importation of the product to marketers, the corporation has taken over the exercise.
The Guardian learnt that the new policy would remain in place until the situation improves.
Also, the corporation has raised the quantity of refined products to be imported for the second quarter of this year from 35 to 55 cargoes.
Also at the weekend, the Department of Petroleum Resources (DPR) and the major oil marketers have agreed to immediately stop further distribution of contaminated fuel believed to be in circulation in Lagos.
They equally resolved to recall products in-transit or in marketers’ distribution chain.
The decisions were taken at a meeting held between the department and the oil majors late Friday night to resolve the crisis surrounding the adulterated fuel.
To ensure that the products are delivered on time, the NNPC last Friday issued a buyer-tender for the 55 cargoes of petroleum products.
The tender, which The Guardian learnt closed last Friday, covers supplies for April to June 2008.
Details of the tender, according to a source, show that the NNPC through its subsidiary, Pipelines and Products Marketing Company Limited (PPMC), would import 40 cargoes of petrol and 15 cargoes of JET-A1 for the aviation industry.
In the first quarter of this year, the NNPC imported 35 cargoes, which were slated for delivery in February and March at a premium of $79 per metric tonne above the Platts’ reference price.
The price for the first quarter consignment was deemed to be attractive, with high expectations that the companies that won the tenders would deliver on time.
“Many people are thinking about delivering at that tender price,” the source said.
Analysts also said that Nigeria might buy more products because of the huge demand by domestic market.
It was also learnt that more vessels were willing to come to Nigeria as maritime survey had revealed a drastic drop in queuing time for discharging products at the Lagos ports.
A report on the maritime sector showed that the queues had shortened to around 20 days on the average from around 30 days a month ago. “The queues are getting shorter and shorter,” a trader was quoted to have said by the survey.
At the NNPC, which had before now left the importation of JET-A1 or aviation fuel to major oil marketers, an official said that the corporation had staged a comeback to address the crisis in the sector, which had resulted in the scarcity of the product since the beginning of the year.
Last month, North American Airline indicated its plan to suspend operations in Nigeria over high cost of aviation fuel.
When contacted at the weekend over the importation drive, the NNPC Group General Manager (Public Affairs), Dr. Levi Ajuonuma, confirmed the story.
Ajuonuma, however, explained that the importation of aviation fuel remained deregulated but that what NNPC had done was to import some quantities to serve as strategic stock in the event of the major marketers not meeting the sector’s demand.
He said that at the beginning of this year, major marketers were having problems in meeting the industry’s need, adding that NNPC was out to salvage the situation.
“What we have done is just to fill that gap instead of allowing our aviation storage tank to be empty. It is not something we will be doing on daily basis,” Ajuonuma stated.
The tender came at a time when the Kaduna Refining and Petrochemical Company Limited (KRPC) resumed operations after more than 10 years of under-capacity utilisation.
Early last month, the Warri Refining and Petrochemical Company Limited came on stream after the repair of Chanomic creeks, which rendered the plant ineffective for several years.
The two refineries have the capacity to produce 110,000 and 125,000 barrels each per day.
The NNPC Group Managing Director, Abubakar Lawal Yar’Adua, had stated at an event in Abuja last month that by the time Kaduna and Warri resumed operations, the total output would be in the range of 12 to 13 million litres per day.
The national daily fuel demand has been put at 35 million litres, thereby leaving about 22 million litres as shortfall, which is filled up through importation.
In a statement issued at the weekend, DPR said that it was making efforts to ensure that the supply of petroleum products that would meet the approved specification was distributed to the market.
The DPR confirmed that it received complaints from the public relating to the quality of petrol being dispensed from some outlets in the Lagos area.
The marketers said in a joint statement that it regretted the havoc the contaminated fuel had caused to general public, especially motorists, adding that customers’ satisfaction, health, safety and environment would continue to be adhered to. They said that stopping the adulterated fuel from further circulation was in the best interest of the country, especially the citizens.
Under the umbrella of Major Oil Marketers Association of Nigeria (MOMAN), the group pledged to abide with the rules and regulations guiding the downstream sector and ensure that quality products were shipped in for customers’ consumption.
When contacted over the incident, Ajuonuma said the existence of the fake fuel had come to the attention of the NNPC.
He said that the NNPC expected the DPR to investigate and determine how and why the product got into the market.
“It is the duty of the department to determine product specification and ensure that off-spec products are not allowed into the market,” he said.
Meanwhile, the Consumer Protection Council (CPC) has written a letter to the DPR on the development.
It urged the DPR “to take urgent steps in investigating the source of any bad PMS, with a view to arresting the situation as well as curtailing its spread to other parts of the country.
“Though some managers of the stations of the alleged major marketer confirmed the existence of the bad fuel in Lagos, they claimed it was yet to get to Abuja. This corroborated the council’s investigations that revealed the incident is yet to be witnessed within the Federal Capital Territory.
“The stations’ managers further claimed that they have been put on alert to properly scrutinise new consignments before off-loading for sale to consumers. As part of its investigation, the council has taken samples of PMS (fuel) in circulation for further laboratory analysis.
“The council wishes to advise consumers, particularly motorists, to be more cautious in their purchase of PMS because of the inherent danger of bad fuel on their automobiles.”
In his reaction, Mr. Tony Chukwueke, the Director of the DPR, admitted that there had been reports of adulterated fuel in Apapa and Victoria Island, adding that the affected filling stations of Mobil Oil had been closed down.
“We will take appropriate action. We suspect that it was not deliberate and probably occurred from a tank. We are working with the Mobil management to get to the bottom of the matter,” he said.
Two Oando service outlets were among those affected by the DPR shut down, an indication that the organisation was affected by the development.
In a statement by Akin Fatunke, Mobil’s Manager, External Affairs, he confirmed receiving complaints from customers within the Lagos area, adding that it stopped dispensing fuel from the filling stations identified and ordered a thorough investigation.