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Why Kerosene Is Scarce - Depot Owners(AllAfrica Via Acquire Media NewsEdge) SOME petroleum products depot owners in Lagos have attributed the persistent scarcity of the Dual Purpose Kerosene (DPK) to diversion by majority of the marketers. The deport owners told the News Agency of Nigeria (NAN) in separate interviews that the inherent huge returns from diverting the product was responsible for the development. They said the huge profit had made most marketers to compromise the Federal Government efforts at providing kerosene for majority of Nigerians. Mr Gabriel Simpson, Managing Director, Interland Petroleum Ltd., said that some marketers were also involved in high scale smuggling of millions of litres of kerosene across the borders. According to Simpson, kerosene distribution still remains a major challenge in the country because it is on record that kerosene meant for the masses is diverted to other sectors or agencies to make more money. "I have consistently and vehemently at every forum, informed Nigerians that petroleum products subsidy on DPK benefits only the rich to the disadvantage of the average man on the street. "Since the government of late President Musa Yar'Adua, the confusion as to who pays subsidy subsists. "NNPC has been bearing the burden of solely sustaining kerosene importation, petroleum marketing companies have refused to bring in the product due to the said uncertainty," he said. Mr Jubril Ibrahim, Managing Director, Triple-K Oil and Gas, also identified inadequate supply and lopsided kerosene distribution as another major driver of kerosene scarcity. According to Ibrahim, in most instances supply from NNPC goes to depot owners whose main stock in trade is to make maximum profit and not targeted at filling stations where prices could be easily monitored. "There are also allegations of money exchanging hands on per liter basis between the supplier (NNPC) and the depots that get the product. "Although there is no evidence but it remains a strong fact behind the high price of the product from the depots. "Marketers have also complained about bank charges as they are made to pay for the product in billions of naira weeks before the allocations are made by PPMC. "Thus, increasing the cost of raising money by way of additional interest payment before the product is supplied," he told NAN. "We receive DPK once in a month and the maximum we get is 5,000 metric tonnes or about 6 million litres or 200 trucks of 33,000 liters each. "In most cases marketers usually overpay for the product every month and we have to first give them before others in subsequent supplies." Mrs Bolajoko Oludare, Taplox Oil Ltd., said that getting kerosene product above fixed price of N49.50 is a common phenomenon controlled by an alleged "mafia group." Oludare also alleged that some officials of NNPC and PPMC usually demanded for additional cost of between N15 and N20 per liter from marketers. She said that some NNPC officials usually offered allocations to marketers to satisfy some political expediency. She noted that in such situations, political big wigs were either reimbursed or the proceeds used to oil the political machinery of a particular individual as the case might be. "To be very sincere with you, I doubt whether any depot owner gets the product without any undertone that will eventually make them to sell well above the recommended price of 50 naira per liter. "The issue of kerosene supply will even get worse next year due to political consideration as allocation papers will just be flying about because lots of big time politicians will be given allocations. "And they will subsequently be looking for depot owners to sell the allocations to," she claimed. Meanwhile, some Nigerians have urged the Federal Government to deregulate the pricing of kerosene following the incessant hike in price of the product nationwide. Mrs Dorcas Philips, a banker, urged government to exercise its powers by reducing the kerosene price from between N140 and N170 per liter to the controlled price of N50 per liter. Philips demanded the inauguration of a special task force to check the illegal activities of marketers and some alleged government officials. NAN reports that kerosene at most tank farms are sold at between N109 and N120 per litre, while the product cost N129 per litre outside the depots. NAN Copyright The Guardian. Distributed by AllAfrica Global Media (allAfrica.com). |