NNPC Moves to End Diversion of Kerosene

Fri, Feb 20, 2015
By publisher

Energy Briefs


THE Nigerian National Petroleum Corporation, NNPC, and the Coalition of Grassroots Non-Governmental Organisation, CGN, have set up a 15-man team to monitor the sale of kerosene product. The development followed continued diversion of kerosene by the independent marketers of petroleum products, which has made it impossible for consumers to access the product at the official pump price of N50 per litre.

Waheed Adetunji, team leader of group, said the NNPC, through its retail network, in conjunction with CGN, set up the monitoring team to ensure that kerosene is sold at the regulated price of N50 per litre in the country. He noted that the product is officially sold for N50 per litre but the common man in the street pays more than N120 per litre to access the product at private retail outlets.

Concerned by this man-made hardship inflicted on the people by the independent marketers, the NNPC through its mega filling station decided to set up a monitoring team. According to him, the team comprises of NNPC officials and some private volunteers CGN. The team is to ensure that this racketeering was nipped in the board to make life more meaningful to the majority of Nigerians, who use Kerosene for domestic fuel.

The 15-man team with representatives from the NNPC, Pipelines and Product Marketing Company, PPMC and CGN has the mandate to ensure that the product does not go to the black market through diversion by middlemen. “This it is doing by ensuring that no single individual buys more than 25 litres at a time. To checkmate the activities of the officials and dealers, the monitoring team will ensure that measurement of the volume of kerosene at each station is taken before and after sales each day the product is available. And where there are noticeable infractions or contraventions of the laid down procedures by the dealers, the CGN representatives must give its report on daily basis,” he said.

Adetunji also said that the team would curb the mid-night racketeering by ensuring that the product is not sold at night. “Kerosene is used for cooking and other domestic purposes by majority of Nigerians, who cannot afford gas. But this product has been out of the reach of the common man for sometimes now, as a result of the activities of middlemen who divert and hoard the product for sale at high price above government regulated price of N50 per litre. Never again will Nigerians be subjected to hardship as a result of the inordinate ambition and get rich quick attitude of a few Nigerians. We have a job to do to ensure Kerosene get to the common man regularly and at regulated price of N50 per litre,” he said.

DPR, Banner Energy collaborates with Kenya in LPG

THE Department of Petroleum Resources, DPR, and the Banner Energy Limited have are collaborating with the National Oil Corporation of Kenya in the Liquefied Petroleum Gas, LPG, sector. Anthony Konwea, manager in charge of gas production and flare monitoring, DPR, assured the team that the regulatory agency would be ready to collaborate with them to deepen the LPG sector in both countries.

George Osahon, Director DPR
George Osahon, Director DPR

Konwea stated this when Nuhu Yakubu, managing director, Banner Energy Limited, led an eight-man delegation from the National Oil Corporation of Kenya to the DPR headquarters in Lagos. He told the eight-staff member of the various agencies representing the National Oil Company of Kenya that Nigeria has a robust Petroleum Act that governs the oil and gas industry, including the LPG sub-sector and urged the East African country to explore opportunities for mutually-beneficial collaboration between the two countries.

In his remark during the meeting, Yakubu stated that Banner Energy is an investor in the LPG sector, exploring for investment opportunities in Nigeria and other countries in Africa. “Banner is an energy business development management company, with expertise in LPG delivery and trading, infrastructure development, power generation, gas system engineering, procurement, installation, maintenance, bulk and retail gas trading. Banner is playing host to the eight-man delegation from the National Oil Corporation to Nigeria,” he said.

Yakubu stated that the pivot of the visit was to enable the team from Kenya to understand and familiarise with the LPG industry in Nigeria, taking Banner Gas network of LPG plants across Nigeria as a case study.

Some of the members of the Kenyan delegation stated that they decided to visit DPR, being the technical regulator of the Nigeria’s oil and gas industry, so as to familiarise themselves with the regulations and process governing the LPG industry in Nigeria. They also pledged to explore areas of collaboration with Banner Energy and the country’s regulator authority.

The Kenyan team and officials of Banner Energy also visited the Standards Organisation of Nigeria, SON, to acquaint themselves with the issues of standards and quality in Nigeria’s LPG sector. Banner Energy has many local and international partners, including FAS Flussiggas-Anlagen GmbH, Salzgitter of Germany, one of the leading manufacturers and suppliers of LPG fittings and components in Europe.

The company is an efficient partner of Banner Energy Limited on a high standard, and supply essential components for tank trucks and stationary plants – fittings for pipelines, valves for tanks, pumps and others.

— Mar. 2, 2015 @ 01:00 GMT