FEDERAL Government yesterday threatened to dispense fuel to the public free of any charges, from any filling station discovered to be hoarding petroleum products.
The declaration was made yesterday by Mr. Billy Agha, Acting Director of the Department of Petroleum Resources (DPR), against the backdrop of fuel scarcity within Lagos metropolis and environs.
“It has come to the notice of the Director of Petroleum Resources that some petrol stations are not selling fuel in anticipation of increase in pump price by government. For the avoidance of doubt, any filling station caught by DPR with fuel and not selling will be sanctioned. The fuel will be dispensed to the public,” he said.
Checks also revealed that petroleum depots were not dispensing products at press time yesterday, purportedly in anticipation of an impending increase in prices.
It would be recalled Vanguard had reported seeming confusion over the current status of government’s plan for the deregulation of the downstream sub-sector of the Nigerian oil industry in the face of current realities, with resultant scarcity of petroleum products looming across the country and long winding fuel queues returning to filling stations.
Following the removal of subsidy, marketers proceeded to import and stock petroleum products believing that the removal implied tacit approval for full blown deregulation of the sub-sector.
In February, landing cost of imported premium motor spirit (PMS) was N59 per litre owing to drop in prices on the international market.
It would appear the prevailing downward incline of the price curve at the time bought the consumer some measure of respite, which appears to have ran its course following the seemingly upward incline of the price curve on the international market.
Checks revealed that landing cost of PMS as at Friday last week stood at N64 per litre, indicating that given a regulated pump price of N65 per litre, products cannot be moved outside Lagos on a limited N1 per litre margin.
Currently landing cost of PMS is about N70 per litre, an indication that marketers cannot import and sell petrol at the regulated price of N65 per litre especially given the removal of subsidy by government.
When contacted, some marketers who did not want their names in print opined that they would adopt a ‘wait and see’ attitude to know exactly what government intends to do about the situation.
However, checks revealed that the marketers ‘wait and see’ attitude implies non-participation in the importation regime and an inevitable consequence of scarcity of petroleum products and the return of fuel queues nationwide.
One of the marketers lamented government’s perceived inability to show firmness and commitment to the process of deregulation, noting that ‘it is time to show leadership’.
He also disclosed that stocks imported by the marketers at N59 per litre would soon be depleted and that as soon as this happens,
At the NNPC, management met until very late last night exploring ways and means of managing the fuel pricing logjam.
Indications are that although the presidency may be well disposed to maintaining removal of petroleum subsidy payments, it lacks the political will to follow through on its position, given the implications – full blown deregulation of petroleum products prices.