Editorial
That Unwholesome PMS Saga
After years of normalcy in fuel supply and distribution, driven by the current monopolistic importation
arrangement of the Nigerian National Petroleum Corporation (NNPC) Limited, Nigerians woke up to the sudden return of queues at filling stations, with some unfortunate consumers paying for bad Premium Motor Spirit (PMS).
Strong clues have emerged that superfluous and inequitable profit-seeking practices by some contractors handling NNPC crude-for-fuel swap contracts were responsible for the regrettable incident. This ugly development is a manifestation of the high level indiscipline and the mediocre leadership of the oil sector management by the NNPC.
Last month, petroleum products with methanol content above Nigeria’s specifications were imported into the country. The NNPC Group Managing Director (GMD), Mele Kyari, said the importation was made by some suppliers under its Direct Sales Direct Purchasing (DSDP) arrangement through four premium motor gasoline cargoes. The DSDP structure is part of the Corporation’s plan of action to ensure the sustained supply of petroleum products in the country.
A frail spot in the system was exploited to take these shipments into the country. While the pre-shipment/pre-emission standard test parameters for most countries include oxygenation and methanol, this standard had probably not been endorsed by Nigerian regulators. This is a flaw deliberately exploited by adversaries of the nation to produce the adulterated PMS.
Most of the contractors market the sweet crude from Nigeria and in turn source a less quality and cheaper methanol-blended product, which make their way in through enervated regulatory authorities. We call for the urgent blacklisting of the companies and terminating of government officials, who are alleged collaborators in this impish deed.
While the harmful consequence of regulatory lax convulses Nigerians, The Tide urges transparency and accountability in the DSDP scheme. We maintain that sanctioning everyone who played any role in the episode remains a leeway. Importing poor-quality fuel that cannot be sold in any other country to Nigeria is a social, economic and environmental monstrosity and an international discomposure.
Although Kyari has regretted the great deal of damage caused by the substandard fuel, Nigerians deserve better than an apology. Indeed, the time is long overdue for President Muhammadu Buhari to quit the position of Minister of Petroleum Resources who, from all indications, is incredibly guilty of complicit nonchalance of happenings under his watch.
A key worry is that four of the oil companies (MRS, Emadeb, Brittania-U and Oando) accused of importing the substandard petrol curiously denied the allegation, creating more complication in the move to unveil shippers of the bad fuel. Only Duke Oil, NNPC’s trading arm, has remained mute about the accusation. The GMD’s close-mouthed stance on the renunciations by the firms he earlier held responsible for importing the toxic fuel is not only disquieting, it smacks of complicity.
The NNPC boss again stated that the cargoes’ quality certificates issued at the load port (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian specifications. He then noted that as a definitive procedure for all PMS imports to Nigeria, the said cargoes were equally validated by inspection agents appointed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA).
A further extenuation by Kyari states: “It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for methanol content, and therefore, the additive was not detected by our quality inspectors.” The question is, did the validators not notice anything eerie or eccentric about this batch, or did they feel Nigerians did not deserve better than what they got? The Belgian firm from where the fuel was brought in should be indicted and made to face charges.
This phenomenon underscores the need for Nigeria to end the age-old importation of fuel. Our inability to refine a single litre of petrol in a country widely reputed to be a foremost global oil producer is disreputable. That means 100 per cent of petrol in the country is imported. The rapid rehabilitation of the existing refineries and the construction of additional ones are imperative.
To ameliorate the prevailing dearth of PMS, the NNPC assured that every step would be employed to restore supply in the country and that 2.1 billion litres of petrol were already in their custody while enough quantities had been ordered. If that is the case, why is the product still in short supply to date? Beyond the repeated assurances, Nigerians need to understand when the unpleasant situation will cease.
If the events of the last few weeks are anything to go by, the NNPC leadership has failed spectacularly and should not be spared for its disconsolate failure. It must not be lost on the Corporation that it is now a limited liability company, operating under the Companies and Allied Matters Act (CAMA) and no longer relishing the franchise of being a government agency.
The cost implication of the dangerous petrol is worse for individuals and corporate bodies who got their vehicles and fuel-powered machines badly damaged as a result, and especially for the country’s economy. Somebody, particularly the NNPC, must pay a price for this. There is a need for the establishment of a compensation committee to evaluate claims of affected Nigerians.
A full-scale investigation into the matter to unmask the culprits for appropriate sanction is exigent to stanch a recurrence. Meanwhile, the NNPC should institute legal proceedings against importers of the bad PMS, considering the painful effect the sudden and unforeseen withdrawal of petrol from circulation has caused Nigerians, who are moaning as the cost of goods and transport fares have shot up across the country.
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