There are indications pointing to the fact that the relative stability in fuel supply that have been enjoyed for the past months may soon be disrupted as petroleum marketers have threatened to down tools if adequate and swift action is not taken by government to resolve the issues surrounding the recent approval of the controversial product import allocation for the third quarter of the year.
There have been accusations and counter accusations levelled at the Petroleum Product Pricing Regulatory Agency (PPPRA); the government agency saddled with the responsibility of approving and issuing import allocation, from petroleum marketers who have alleged disparities and a high level of favouritism in the way the allocation process was carried out.
They alleged that the PPPRA has sidelined the major investors in the downstream sector and had instead focused on rent seekers and portfolio business men who have made no investment in the economy and only cream- off its profits, they pointed out that by excluding the qualified companies who have the required facility and infrastructure, PPPRA is undermining the entire essence of the local content Act.
Shipping Position Weekly have been monitoring the unfolding drama from both sides and last week in an interaction with the chairman of the Jetty and Petroleum Tank Farm Owners of Nigeria (JEPTFON) Mr. Ifeayin Ubah, he said that if the issue is not resolved they might have to close down operations as a way of protest.
Ubah who was speaking with our correspondent via telephone stated that “the PPPRA has been allocating importation in a rather unfair and non-transparent manner, what we JEPTFON are saying is that government have to encourage us because we have invested so much in the downstream sector, but it now appears as if monkey is working and baboon is eating” he lamented
Speaking further he stressed that “if they don’t change to be fair and correct the situation, we may be forced to down tools; not only that, we may also invite other members in affiliate organizations to join in” he said
Ubah who is also the Chief Executive Officer of Capital Oil and Gas Industries Limited has two weeks ago written a petition to the ministry of petroleum as well as the presidency demanding transparency and fair play in the allocation process even as he alleged that his company which has the largest facility in the downstream sector was not included in the allocation process.
However, responding to these insinuations, the executive secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA) Mr. Abiodun Ibikunle told Shipping Position Weekly that “the situation does not warrant a strike because all the matters that are raised by the marketers are being looked into critically with a view to resolving the situation” he assured
He went further to say that contrary to the impression being created by marketers, “the agency does not wish to encourage the cartels to highjack the process, “we allocated volumes only to those that are major players in the system and this was based on past records of how they have implemented the allocation given to them in the last quarter” he said.
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