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Nairaland Forum / Nairaland / General / Business / Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution (664 Views)
Dollar Scarcity: Petrol Price Hike Looms, Marketers Say / If You Know Any Filling Station Selling Above Pump Price(n87) Call These Numbers / Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution (2) (3) (4)
Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by sanitelag(m): 12:50pm On Jul 29, 2015 |
The Department of Ste Services, DSS, may have
taken over the job of monitoring downstream
petroleum distribution and marketing, as part of
the President Muhamadu Buhari’s measures to
stem the high level of corruption in subsidy
claims.
Consequently, retail outlets found selling any
petroleum product above the prescribed
government price will be immediately shut down,
while any depot selling above the ex-depot price
will have to forfeit the subsidy claims on the
cargo that brought in the product.
The move followed the apparent inability of the
industry regulators, the Department of Petroleum
Resources, DPR, and the Petroleum Products
Pricing Regulatory Agency, PPPRA, whose officials
were apparently overwhelmed by the supply
shortages to check sharp practices and market
excesses among the operators.
File: Seized fuel trucks
Consequently, the DPR has scheduled another
impromptu closed door meeting with marketers
and other industry stakeholders today
(Wednesday) at its Headquarters in Lagos, to
update them on the new development.
Confirming the development yesterday, a top
industry source who also attended the meeting
told Vanguard in a telephone interview that the
decision was made known to stakeholders at a
closed door meeting which held in Abuja on
Monday.
The source, who spoke in confidence said: “DSS
will lead the operations (monitoring), and
marketers were also asked to monitor each other
and to report any sharp practices. “Government
decided that enough was enough and will no
longer condone any sharp practices in the
system.”
The source, disclosed that the meeting was at the
instance of the Federal Government, and had in
attendance the representatives of the DSS, DPR,
PPPRA, Major and independent marketers, depot
operators and a host of other industry operators.
The source added that attendants sat for long
hours deliberating on the best way to arrest the
unofficial price hike of petroleum products in the
market, occasioned by supply shortages following
the inability of the government to pay markets
outstanding subsidy claims of over N200billion.
Sudden hike in price
The source was responding to Vanguard’s
enquiries on the cause of the sudden unofficial
hike of both the pump price and ex-depot price of
premium motor spirit, PMS, popularly called petrol
and kerosene, and the helplessness of the
industry regulators to arrest the situation.
Since the supply shortages set in some months
ago, marketers and depot operators took the
initiative to hike pump and ex-depot prices to
reap enormous profit while waiting for government
to pay off their outstanding claims.
As a result, practically every retail outlet sold
petrol at above the prescribed N87/Litre, to peg
price at between N100 and N150/Litre depending
on the outlet and location.
Similarly, rather than the prescribed N81/litre ex-
depot price, marketers accused the depot
operators of selling at N96/litre instead, which
they claimed forced them to also hike pump
price.
He said: “Such practices will no longer be
condoned especially with the involvement of the
DSS, who will use their intelligence network to get
to the root of the matter.
“The meeting decided that all marketers must sell
at the regulated price of N87/litre of petrol. And
anyone found to be selling above this, the DSS
will track the outlet to the depot where the
product was lifted.
“If it was discovered that the pump price increase
is as a result of hike in ex-depot price, then both
the outlet and the depot will be sanctioned.
“Originally, it was agreed that both the outlet and
the depot will be shut down, but after considering
the situation, if was agreed that the depot will not
be shut down in order not to exacerbate the
supply situation.
“However, the depot operator will be made to
forfeit his subsidy claims on that cargo, as it will
be assumed that he has reimbursed himself
through the ex-depot price hike.”
“We are meeting with DPR again tomorrow
(today) on the same matter for them to tell
everybody what is happening and the need for all
to ensure compliance,” the source added.
DPR meets with stakeholders
Expressing shock at the takeover of parts of its
functions by the DSS, a top management official
of the DPR confirmed the upcoming meeting with
stakeholders in Lagos today.
The official, who also spoke in confidence in a
telephone interview told Vanguard: “The
Downstream Unit only informed us about the
meeting holding tomorrow at about 4p.m. today.”
He expressed shock that the Unit did not give
them full disclosures on the reasons for the
impromptu meeting saying: “It is sad that
everybody now do territorial claim when the
whole roof is caving in. if there are new
developments we should know firsthand and not
from a third party.”
Agreeing that the DPR was overwhelmed by the
sharp practices in the industry, he asked: “How
can we effectively monitor a situation where the
marketer shows us technical proof about the
depots selling above the ex-depot price, and the
depot operators in turn show prove at selling
under the regulated price?
“We heard their accusations back and forth, and
decided to hold an impromptu meeting with them
in Lagos a few weeks ago, which was also
reported by your paper. Since it was an open
meeting, we expected the parties to openly make
their allegations. But nobody did. So how can we
hold anybody responsible?”
He, however said that the involvement of the DSS
was a welcome development as long as it will
bring sanity to the system, seeing that DPR
lacked the capacity to fully monitor downstream
operations. |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by Futureleader1(m): 12:51pm On Jul 29, 2015 |
K |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by BeeBeeOoh(m): 12:51pm On Jul 29, 2015 |
This administration is a joke believe it ot not.. |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by Nobody: 12:52pm On Jul 29, 2015 |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by Abugab(m): 12:53pm On Jul 29, 2015 |
Better. The exploitation of Nigerians by marketers must stop. They should be made to refund all the stolen subsidy money. Anyone bursted should be locked up and the owner tried. 1 Like |
Re: Breaking News: Pump Price Hike: DSS Takes Over Monitoring Of Fuel Distribution by importexpert(m): 1:05pm On Jul 29, 2015 |
Abugab: my president God will see you through. seconded bro 1 Like |
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