Ejiofor Alike
6 November 2009
Lagos — Department of Petroleum Resources (DPR), the apex regulator of Nigeria's oil and gas sector, has queried six major and independent marketers of petroleum products for alleged diversion, hoarding and selling Dual Purpose Kerosene (DPK) above the stipulated ex-depot price.
Disclosing this to reporters while leading a team of officials from the DPR and the Nigeria National Petroleum Corporation (NNPC), to monitor the sale of kerosene by private depot owners in Lagos, yesterday, Head of Depots at DPR, Mr. Patrick Emordi, said the action of the marketers was responsible for kerosene scarcity.
He said the affected depots were given products between September 30 and October 25 to load out to the public, but most of them sold the products in bulk to other marketers at exorbitant prices.
"PPMC gave products to some of these depots to load out to the public; not to keep them. The intention of the government is to ensure that these depots load out the products so that there will be kerosene everywhere.
"But if you go out now, most of the filling stations don't have kerosene. So, they are trying to defeat the purpose of the government and we will not allow it.
"That is why we are giving them seven days to respond to our query and explain why they should still remain in operation," he explained.One of the letters made available to THISDAY, with reference number DPR/ DS/ PD/EO/Vol. 1/132 and dated November 2, 2009, read: "we have recently observed that your company has been engaging in activities that indicate flagrant disregards to provisions of the Petroleum Regulations Guidelines and Standards on marketing activities, and several directives by Director, Department of Petroleum Resources, namely: allowing unlicensed dealers to lift petroleum products from your depots; reduced truck load-out from your storage facilities and engaging in selling Dual Purpose Kerosene (DPK) and Premium Motor Spirit (PMS) above the stipulated ex-depot prices."
"Consequently, you are to provide reasons why your company should not be sanctioned in accordance with the relevant petroleum status. We will expect your explanations on or before November 15, 2009," the letter added.Emordi disclosed that the regulatory agency would seal all theaffected depots at the expiration of the ultimatum if they fail to provide satisfactory explanations.THISDAY gathered that PPMC gave over 27,000 metric tonnes of kerosene, which translates to about 32million litres, to the marketers.
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