Months after the national strike that ensued as a result of the removal of subsidy by the Federal Government, there are indications that some petroleum tank farms in Lagos are yet to revert fully to the depot price of the all- important Premium Motor Spirit (PMS) known as petrol which the government has instructed should be pegged at N87 as the depot price.
Months after the national strike that ensued as a result of the removal of subsidy by the Federal Government, there are indications that some petroleum tank farms in Lagos are yet to revert fully to the depot price of the all- important Premium Motor Spirit (PMS) known as petrol which the government has instructed should be pegged at N87 as the depot price.
Shipping Position Daily investigation carried out in Lagos last week revealed that some tank farms along the Ibafon axis in Lagos (names withheld) openly defy the governments’ instruction, not minding the presence of the Department of Petroleum Resources (DPR) they still sell petrol for N93 at the depots, instead of the N87 instructed by the government.
A source at one of the depots that is allegedly involved in the practice but who pleaded anonymity confided in our correspondent that the practice is; they sell the product for N93 but they issue a receipt of N87 in order not to run into trouble with the regulatory agencies and at the same time be able to collect their subsidy claims from the government.
It has also been revealed that since the partial removal of subsidy and the hike in the pump price of petrol price from N65 to N97 at filling stations, many of the tank farms do not sell PMS directly to marketers; instead, they demand marketers to bring the name of a filling station before they can sell.
“When they ask you how much you bought the product and you say it is N93, they will not believe you because N87 is reflected on the receipt issued to you, if you refuse to comply with this at the depot, they will not sell products to you”, our source disclosed further.
“The regulatory agencies are not helping matters, they are also aware of the development, but they keep quiet while the practice goes on, it is like using a thief to watch over a thief” he alleged.
When he was asked why customers and stakeholders have not informed the government about the development, one of the marketers who also spoke with Shipping Position Daily explained that the practice is persisting because customers do not really know the landing cost of the products they are importing.
“Government should direct all the petroleum marketers and importers to make their landing cost of product public so that we will be in the know. This is the main reason why we cannot challenge the atrocities being committed” the marketer said.
Another atrocity that was pointed out was in the Petroleum Equalization Fund (PEF). Sources said that many of the cargo owners lie about the actual destination of cargo, “sometimes the cargo is meant for Ikeja and they reflect Abuja, this is just to collect the PEF money”.
“These days, they check waybill instead of physical examination of cargo brought and this is what is aiding the system” a source said.
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