NNPC partners independent marketers on fuel distribution
By Yakubu Lawal
AS part of its strategies to spread the distribution of petroleum products across the country, the Nigerian National Petroleum Corporation (NNPC) has entered into a partnership with some independent oil marketing companies to use their retail outlets in getting the products to consumers.
Also, distribution of products through independent depots owners had been concluded, thereby laying less emphasis on the use of pipelines whose integrity could not be guaranteed any more due their incessant vandalisation.
A top NNPC official, who disclosed this to The Guardian, noted that it was just not enough to embark on massive importation, but was equally imperative to go the partnership with a view to ensuring that the products to all parts of the country and eliminating hoarding and artificial scarcity.
Meanwhile, the Managing Director of Capital Oil and Gas Company Limited, Mr. Ifeanyi Ubah, on Monday blamed the major marketers for causing the artificial scarcity been experienced all over the federation.
Ubah said for deregulation to work all hands must be on deck in terms of infrastructure development to back fuel supply and storage in the country.
The managing director who was reacting to speculations that some cartel are trying to derail the deregulation policy, said that government should create a level paying ground for all players in the downstream sector of the economy, adding that if government grant equal opportunity independent operators would have come together to put a refinery in the country today.
According to him, the independent oil marketing companies control 20 per cent of jetty in the country, which can receive about 20,000 metric tone (Mt) against the majors that has only one discharging point in Lagos.
He stated that NNPC is in alliance with companies like Capital Oil and Gas Limited, Rahamaniya, MRS, Yinka Folawiyo Petroleum among others using their facilities to receive and distribute fuel on behalf of the corporation across the country but in turn pay for such services.
ÒIn NNPCÕs wisdom to enhance maximum operations of imported products and decided to move products from their facilities and patronise independent jetty owners. Among the depot owners, I think only 20 per cent of them owna jetty and if NNPC decides to partner with those that own jetties to ease demurrage on their part, I think they should be encouraged rather than be criticised.Ó
He said Capital Oil own the biggest storage capacity in Nigeria with 174.5 thousand metric tonnes installed capacity (about 190 million litres) in Lagos with provision to expand.
ÒWe are second to NNPC in terms of storage capacity. We are currently running on 12 loading arm capacity and we are installing additional 16 loading arms, which will be launched before the end of this month, bring the total to 28 loading arms capable of dispensing 25 million litres per day.Ó
According to him, Capital Oil is the only company in the downstream that has a truck park that can accommodate 1,100 trucks at a time.
ÒWe own the biggest private regional reserve storage facility in Nigeria about 180,000 metric tonnes in Nigeria. We are in Suleja, Funtua, Kano, Enugu, Onitsha and Owerri. Work on some of them have reached 90 per cent completion. We own the largest fleet of tankers in the industry today. We own and manage over 600 units of trucks, which gives 1,200 employment on the transport section alone. In our operation nationwide, we have close to 1,400, bringing the total to 2,600 employment in two and half years of our operation, making us the biggest employer in the downstream industry.Ó
He noted that on the allegation of some companies forming cartel and paying kick back to NNPC, Ubah said ÒCapital Oil in the face of events cannot pay NNPC a kickback because NNPC has not paid us a kobo for all the services we have given them since this year.Ó
ÒThe price we are charging is in line with PPPRAÕs recommendation. In order to be given allocation, people pay in advance and still queue. There is no way NNPC can be the only customer that pays in arrears and we still give them bribe,Ó he stated.
According to him, the major oil marketers have not been fair in their fight against deregulation, adding that they enjoy credit lines and the independent doesnÕt.
Ò I assure you that we will be against anybody that will try to monopolise import licence. I donÕt think NNPC with the instruction they have on ground will take monopoly of import licence.Ó
