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How 10, 000mt of bad petrol caused scarcity as FG begins probe

By Babs Oyetoro and Cross Udoh, Abuja
The importation of contaminated Premium Motor Spirit into Nigerian markets has caused serious anguish in the past few days as some Nigerians have started counting their losses even as the Federal Government has ordered a probe into how the product got into the country.

But at the centre of the crisis is the Nigerian National Petroleum Corporation Ltd (NNPC)- the sole importer of the product in the country.

It was learnt that the vessel that conveyed the product discharged in Apapa between January 24 and 30 and the distributions were done among the major marketers.

It is on record that the distributions were done in this format among the various major marketers: OVH received 10,000mt; MRS (5,000mt); NIPCO (5,958mt), while ARDOVA (6,000), totalling 10,000mt.

The various marketers received the products in their deports, no sooner some of them commenced distributions to their various stations but the Pipelines Product Marketing Company, a subsidiary of NNPC had to recall the product.

The recall, however, caused severe queues in Abuja, Lagos, Niger, Nasarawa, and many other states, as the few petrol outlets that dispensed products were crowded by motorists and other PMS users.

Meanwhile, the Federal Government yesterday said it has initiated the process to investigate the supply of adulterated petrol to the country, which has reportedly caused damages to many motorists’ engines.

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this to State House correspondents at the end of the virtual Federal Executive Council (FEC) meeting, presided over by President Muhammadu Buhari, at the Council Chamber of the Presidential Villa in Abuja.

The Minister said that the President was briefed on the matter and that the aim was to get to the bottom of the matter.

He cautioned against concluding before the investigation is completed.

Asked whether the issue was discussed at the council meeting and the suppliers be punished, Sylva said: “The issue did not come up at the Council meeting, but of course, you will recall I was here yesterday (Tuesday) to brief Mr. President on the issue. I’m not in a position to disclose the identities of the companies, but there are some issues, and we are actively tackling it.

“Nobody has, before now, checked for methanol in our fuel, it’s not very usual and this is the first time this is happening and NNPC is very much up to the task.

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“I will also convey your question to NNPC and maybe the Midstream and Downstream Regulatory Authority, but we’re actively handling it and I want to assure you that the problem will be a thing of the past very soon.”

The minister assured that government will consider compensating those who may have been adversely affected by the bad fuel.

Asked whether the companies behind the importation of the adulterated fuel will be sanctioned, the Minister said, “I didn’t expect you to rush to any conclusions. There’ll be a major investigation to unravel everything and then let’s get to the bottom of it before we can come back and tell you what is going to happen to the culprits.

“We know that some people’s vehicles must have also been damaged, that is also going to be taken into consideration in dealing with the situation.

•Buhari orders Sylva to query CEO of NMDPRA

President Buhari has ordered the query of the Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over the circulation of off-spec petrol products.

The off-spec product was reported on Monday, affecting the supply chain and causing long queues in Lagos and Abuja as filling stations shut down to clean up tanks.

A presidency source disclosed that Buhari felt that the agency, which by law acts as the “police” of the downstream and midstream sector, should be the starting point for unfolding the importation and subsequent circulation of the product.

On Tuesday, the agency confirmed that petrol, with methanol quantities above Nigeria’s specification, was discovered in the supply chain.

NMDPRA is responsible for the regulation of the midstream and downstream petroleum operations in Nigeria, including technical, operational, and commercial activities.

Buhari, who was said to be bothered about the situation, instructed the Minister of State for Petroleum Resources, to ask Ahmed to explain how the product came about, with immediate effect.

“This matter has become an embarrassment to this government. There’s no question that these cargoes of petrol were bad, so he (Ahmed) is being queried over how the fuel came into the country and the president has so instructed,” the source.

The source disclosed that the response of the agency would determine which other government agencies or private individuals would be sanctioned.

“The reason the midstream/downstream authority is being queried first is that for now, the bulk stops at its desk. They are the first port of call. Ordinarily, they are expected to know how it came

“So, the NNPC has not been queried for now. The question now is who certified the product clean enough to come into the country.

“When the investigation is done, then the Federal Government will know where the blame lies, but for now, the NNPC is just a company and doesn’t necessarily owe allegiance to government as it were, because it’s now just like every other company with a profit motive.”

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