Tuesday 5 May 2015

Subsidy Debt: FG, Marketers Fail To Give Specific Amount



The Federal Government and major oil marketers, yesterday, declined to give a specific amount as the outstanding debt owed fuel marketers in subsidy payments.
The two parties, however, said the payments had been reconciled, with marketers announcing their resolve to immediately ensure smooth fuel distribution throughout the country.
Emerging from a meeting between the marketers and government agencies  in Abuja, yesterday,  the Coordinating Minister for the Economy and Minister of Finance,  Dr. Ngozi Okonjo-Iweala, and Mr. Femi Olawore, who spoke for the marketers, said the matter had been amicably resolved.
The minister said the reconciled figure indicated that what was recently paid to marketers was N154 billion and not N156 billion.

According to her, “it is a rolling business and even as we speak, claims are being presented to the Petroleum Products Pricing Regulatory Agency, PPPRA, and the Executive Secretary is clearing and signing  some. Therefore, it is difficult to give a specific figure as the outstanding debt.
“As the marketers continue to supply products to Nigerians, we will continue to pay.  This is a process that is continuous.”
The minister said rather than insisting on the figure of the debt, what Nigerians should note was the significant reduction in subsidy from N2.3 trillion in 2011 to N971 billion last year.
She said about N500 billion had been paid to marketers this year, including the N154b that had just been paid.
Calculating debt
Responding to questions, Olawore said the basis of calculating the debt by the marketers was different from that of the Federal Government which made it impossible to arrive at the same figure.
His words: “It depends on the figure that the PPPRA has sent to the DMO (Debt management Office) and the DMO has scrutnised and sent to the CME (Coordinating Minister for the Economy). As the person that is doing the supply (of fuel), I do it to the last day but my documents might not even have passed the point of processing.  That is why there is that disparity.
“This is a process that is continuing. At some point, there will be an agreement to say, for today, we pay you ‘X’.  When you get ‘X’, it could even eat into the N200 billion and then there are more jobs done and then it continues like that. “
Oil marketers had said earlier that they were being owed about N200 billion in unpaid subsidy by the Federal Government, a figure that was disputed by Okonjo-Iweala, which brought about the reconciliation meeting.
Scarcity continues despite assurances by marketers, tanker drivers
Meanwhile, the fuel crisis in Abuja continued, yesterday, with long queues at almost all the petrol stations while motorists spent several hours trying to purchase the commodity.
This was in spite of assurances by oil marketers, Petroleum Tanker Drivers (PTD) and National Association of Road Transport Owners, NARTO, of improved fuel supply across the country. This followed the resolution of their disagreement and the payment of N156 billion by the Federal Government to marketers for outstanding subsidy claims.
Unlike the situation last week, where 95 per cent of the petrol stations in the Federal Capital Territory, FCT, were without petrol to sell, most of the petrol stations were selling, yesterday, but were besieged by motorists.
In some of the petrol stations, like the Nigerian National Petroleum Corporation (NNPC) mega station in the Central Area, the queues stretched to as far as two kilometres, blocking major roads and causing gridlock in some of the areas.
Along the Airport Road, Asokoro, Lugbe, Kubwa and Gwarinpa only a few petrol stations were selling, while others were shut, claiming they have run out of the commodity.
The three petrol stations at Dutse, along the Kubwa Expressway, were shut, while large number of motorists was seen trying to buy the product at the NNPC filling stations located miles apart on both stretch of the Kubwa Expressway.
Oando petrol stations at Wuse Zone One and Zone Four were selling, same also for NNPC petrol station at Wuse 2.
Black marketers have field day
Black marketers continue to have a field day, as there were seen in strategic locations across the Federal Capital Territory, FCT, selling fuel to motorists at between N200 and N250 per litre.
At Mabushi, Kado, Dutse, Gwarinpa, Central Area and Wuse among others, the black marketers were making brisk business.
Stations hike pump price
Also, a number of petrol stations hiked their pump price, selling at between N110 and N130 per litre. Specifically, Vanguard observed that the NNPC filling station in Nyanya, Abuja was selling at N110 per litre, while the NNPC filling station at Zuba was selling for N135 per litre.
Almost, all the petrol stations at Byashin in Bwari Area Council, Abuja were selling at between N120 and N140 per litre along with petrol stations at Suleja and Abuja-Kaduna Expressway.
The NNPC had a couple of days ago, attributed the recent scarcity to the strike embarked upon by the members of National Association of Road Transport Owners (NARTO) and the Petroleum Tanker Drivers (PTD) over their disagreements with major oil marketers.
However, a few days ago, Comrade Atunda Adebayo, Public Relations Officer, PTD Branch of the Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, said his members had started lifting  products to ease the hardship occasioned by fuel scarcity,
He promised that the effect of the movement of products across the country will be felt from this week, adding that there are vessels laden with petroleum products at the high sea waiting to berth in the country.

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