Fuel Crisis: Kachikwu Begs Nigerians …Says Queues To Disappear April 7 …Buhari Okays More Crude For NNPC

L-R. Wife of the Deputy National Chairman, PDP, Pastor (Mrs) Ene Secondus, Rivers State Deputy Governor, Dr. (Mrs) Ipalibo Harry-Banigo and Wife of the Commissioner for Finance, Mrs. Anthonia Kpakol representing the wife of the state Governor, Justice Suzette Wike, chatting during the Special Annual Easter Programme for Children in Port Harcourt, recently.

Following backlashes which trailed his comments that the biting fuel scarcity across parts of the country would linger till May, Nigeria’s Minister of State for Petroleum, Dr. Ibe Kachikwu, in a dramatic u-turn, yesterday, said that the long queues in the country’s petrol stations would disappear on Monday, April 7, 2016.
Kachikwu, who is also the group managing director of the Nigerian National Petroleum Corporation (NNPC) disclosed this when he appeared before the Senate Committee on Petroleum (Downstream), yesterday, over the fuel scarcity ravaging the country.
The minister said: “By 6th or 7th April, the long queues in filling stations would disappear.”
He apologised to Nigerians over his statement that the biting fuel scarcity will linger till May.
Meanwhile, the Nigerian National Petroleum Corporation (NNPC), yesterday, said that President Muhammadu Buhari has given approval for the corporation to take additional crude oil volume to guarantee the country’s supply of Premium Motor Spirit (PMS) petrol.
In a statement titled, “NNPC determined to end fuel scarcity,” its  Group General Manager, Group Public Affairs Division, Garba Deen Muhammed, said that due to the challenges that “major oil marketers face in contributing their supply quota due to constraint in accessing foreign exchange and outstanding subsidy obligations, NNPC is burdened with the obligation to guarantee almost 100% in the national supply, since the domestic crude oil supply (445,000 bbls/d) can only guarantee about 50% of the 45 million litres national requirement for petrol; we have secured presidential approval to take additional crude oil volume to guarantee national supply of petrol.”
According to the statement, the current administration inherited a huge catalogue of issues and problems in the downstream sector not limited to arrears of subsidy payments to oil marketers, corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines, refineries poor performance, among others.
It added that; “A combination of these issues resulted in most oil majors completely pulling out from the importation business and NNPC assuming a near 100% importation obligation without the necessary logistics put in place.
“In line with the change agenda of this administration, NNPC Management initiated and made progress on various key solutions to providing a lasting end to these issues.
“The unpaid arrears arising from the subsidy regime had necessitated most oil marketers to stop all forms of involvement in petroleum products imports. Thankfully, with the firm support of Mr. President and the National Assembly, we greatly reduced this debt burden and since January, 1st 2016, we have been able to eliminate subsidy payments by managing prices at current levels through price modulation. This has resulted to savings of over N100billion monthly for the nation.
Violations of approved prices and hoarding of petroleum products attract the following penalties, he vowed.
The penalties, according NNPC, include giving out of petroleum products free to the public, sealing off fuel stations found to be hoarding petroleum products and payment of a fine.
The corporation also vowed to withdraw marketer’s license, stressing that “Any NNPC, DPR, PPPRA or government agent found conniving /wanting will be sanctioned accordingly in line with public service guidelines and procedures.
The statement noted that supply constraints due to foreign exchange challenges are being resolved through collaboration with the Central Bank of Nigeria (CBN) on innovative ways of closing the gaps in accessing foreign exchange.
The statement noted that “We are vigorously pursuing an improved model for ‘crude oil for refined product’ exchange (the Direct Sale – Direct Purchase arrangement) which eliminates inefficiencies with an attendant cost saving for the nation of about $1billion. This will guarantee sustainable product supply to the nation.