FG, marketers reach deal to end fuel crisis

The marketers have locked up hundreds of millions of litres of refined petroleum products in storage facilities across the country, leading to a crippling fuel shortage.The government paid the marketers about N200 billion subsidy three weeks ago but the marketers are insisting on another payment of about N150 billion.The joint Senate committees on Petroleum Resources […]

The marketers have locked up hundreds of millions of litres of refined petroleum products in storage facilities across the country, leading to a crippling fuel shortage.
The government paid the marketers about N200 billion subsidy three weeks ago but the marketers are insisting on another payment of about N150 billion.
The joint Senate committees on Petroleum Resources (Upstream and Downstream) brokered the deal at a meeting of stakeholders in Abuja.
Senator Magnus Abe who read a communique signed by the stakeholders, disclosed that Finance Minister Dr. Ngozi Okonjo-Iweala, and other stakeholders unanimously agreed to the peace deal.
He also said following the intervention of the Group Managing Director of the Nigerian National Petroleum Corporation, Dr Joseph Dawah, the strike embarked upon by the National Union of Petroleum and Natural Gas Workers and the Petroleum and Energy Gas Senior Staff Association of Nigeria, had been called off.
He said that the Chairman, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, had agreed to direct his members nationwide to start lifting petroleum products from 6:00pm yesterday.
The marketers had also agreed to pay the National Association of Road Transport Owner the transport cost which would be determined by them.
Abe said depot managers across the country, had agreed to open their depots nationwide for oil lifting to resume.
The Department of Petroleum Resources had also been asked to withdraw the operational licence of any depot which refused to open for fuel lifting.
Abe said the NNPC had directed all relevant staff working in the various depots across the country, to work for 24 hours including Saturdays and Sundays for the next two weeks until normalcy returns to the sector.
He said the committee would reach out to the Lagos State government on the agreement reached and the need for the state officials to create enabling environment that would enhance smooth lifting of fuel at all the depots.
The communique read by Senator Abe read in part: “That the Minister of Finance will give an undertaking to the major marketers and PPPRA that the work of that committee being headed by the CBN would be concluded in verifying the outstanding claims.
“A copy of the letter conveying the existence of this committee will be sent to MOMAN and DAPPMA and also to this committee. So, on the basis of that agreement MOMAN will offer whatever cooperation that is needed to enable lifting of products nationwide to begin within the next six hours (as of 1:00pm on Monday.
“MOMAN has also agreed to give a similar undertaking to NARTO to pay existing transport cost as have been determined by them. Not all existing but the portion that had been agreed by them to be paid.
“DAPPMA is to instruct all their depots that have products to open those depots for lifting. Lifting must commence within the next six hours.
“We have also agreed with DPR that any depot that has product and failed to begin lifting within the next six hours should have their licence revoked immediately in the national interest.
“NARTO has complained about two roads that are critical to their operations and that have made lifting of products nationwide difficult if not impossible.
“That is the Eleme Junction in Port Harcourt leading to the Port Harcourt Refinery – about 11 kilometers – and the Ilorin-Olorunjegba Road in Kwara State which is the only link between the North and the South West, particularly Lagos where these products are available at this time.
“We have agreed that MOMAN will discuss this with their members with a view to looking for a permanent solution to those places and if need be, take up the matter with government.
“We have also agreed that NNPC is to direct all relevant staff at all depots to work 24 hours including Saturdays and Sundays for the next two weeks until normalcy returns to the sector.
“We have also agreed to reach out to the Lagos State Government to facilitate this agreement and reach some kind of arrangement with the tanker drivers that will allow access to the relevant depots to enable the lifting of products to commence.”
Speaking earlier, Okonjo-Iweala,  said she called off an international engagement to attend the meeting in the interest of the nation despite the fact that she did not receive formal invitation from the Senate.
The minister said she was equally affected by the unfortunate development because members of her immediate family including her son, queued to buy fuel in filling stations.
“But I want to make one thing very clear: diesel has been deregulated. It is not subsidised since the era of President Obasanjo.
“The second fact that I’d like to put on the table is that we have made very good effort to keep up with payments for the marketers. And I have the numbers.
“Between 2014 and 2015 we have paid a total of N762bn; Since December we have paid about N500bn which is the number that have been quoting. This year, 2015 we have paid N192bn.
“If you look at the pattern of payments we have made in previous years, this is no different. It’s not like this year we are doing anything different. In fact, this year has been the opposite. We have already paid N191bn.