Nigeria Vows to Sanction Depot Owners Selling Petrol Above Official Price

The Minister of Petroleum Resources, Mr. Timipre Sylva, at the weekend vowed that the federal government would sanction petrol depot operators selling the product above the approved prices. He warned the operators to desist from flouting the federal government’s directive on strict adherence to the official prices of the product in their facilities.

Sylva, who spoke in Abuja, against the backdrop of concerns that the downstream sector operators had begun hiking prices, without approval, declared that the federal government would not hesitate to deal decisively with any depot owner caught selling the product above the approved prices.
The minister said the trucks that move petroleum products around the country, which themselves run on diesel were impacted by the rising prices.

This is coming as the Nigerian Association of Road Transport Owners (NARTO), at the weekend called on its members to resume full operations, following the commencement of implementation of the 25 per cent freight rate by the federal government.
Speaking on efforts to resolve the issue of fuel scarcity in the country, Sylva urged the public to report anyone who tries to take advantage of the situation for punishment as required by the law.
“If any depot owner increases price or any fuel station tries to take advantage of the situation, the public should report immediately. If we do not get the report, we cannot know what is going on or sanction them,” he said.

He stated that the warning had become necessary since the ministry, as well as President Muhammadu Buhari, had information that some depot owners were taking advantage of the situation by increasing the ex-depot price.
“I can assure you that there will be sanctions for any of those depots that continue to increase the ex-depot price as approved. We are going to deal decisively with anyone who tries to take advantage of this situation.
“It’s been difficult weeks. A few weeks ago, we had the issue of petroleum product shortage. I have already addressed that matter which coincided with the geopolitical tension in Ukraine and Russia.
“Prices of crude oil went up exponentially beyond levels expected. As you all know, when crude oil prices rise to that level, they can also affect the derivatives of crude oil.
“Nigerians are suffering because of the high diesel prices, including everywhere else globally. This is not peculiar to us at all. Diesel is a deregulated product and therefore when the prices go up internationally it affects the price also in Nigeria,” he said.
The minister said the trucks that move petroleum products around the country, which themselves run on diesel were impacted by the rising prices.
He stressed that although the products were available in the depots, the trucks could not move them around because of the high cost of transportation, which he said, had brought in another dimension to the current crisis.

According to him, the Nigerian National Petroleum Company (NNPC) Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), had been working hard to ensure a seamless supply of the needed fuels across the country.
Sylva said that supply was being increased across the country, especially in Abuja. “We are not resting; we share the pains of Nigerians.
“We will continue to ensure that the situation is controlled. Queues are coming down in Lagos and other parts of the country. Very soon, this will be a thing of the past,” he said.

Meanwhile, truck owners under the aegis of NARTO have called on their members to resume full operations, following the commencement of implementation of the 25 per cent freight rate recently hiked by the federal government.

Some members of the association had suspended their services because of the high cost of operations and had been agitating for the implementation of a promised increase in the rate.
A press statement issued yesterday in Abuja by the National President of the organisation, Mr. Yusuf Othman, confirmed that the federal government had approved and commenced the implementation of the new rate for the members of NARTO.

Othman urged members to resume full operation to alleviate the current petrol scarcity nationwide, assuring them that the group is working hard on how to get diesel “palliatives” from the government.
“I am calling on our members (transporters) to get back to full operation now that 25 per cent has been implemented.
“I can confirm that the 25 per cent has been approved and implemented. So, I am calling on members to get back to operations to reduce the suffering of the general public.
“In addition, we are trying to look into how to get AGO (diesel) palliatives from the government,” he explained.

Emmanuel Addeh in Abuja

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