October 9, 2012 by Oluwole Josiah, Abuja
The Federal Government plans to spend N251.2bn on the repairs of three refineries.
The Minister of Petroleum, Mrs. Diezani
Alison-Madueke made the disclosure on Monday when she appeared before
the Senate Committee on Petroleum (Downstream).
The minister was at the Senate with the
Group Managing Director of the NNPC, Andrew Yakubu, and the Managing
Director of Pipeline and Products Marketing Company, Mr. Haruna Momoh.
They were summoned to explain the continued scarcity of Petroleum Motor
Spirit and the increase in the price of the product by marketers.
Alison-Madueke said the government would
be spending N251.2b on the Turn Around Maintenance of the three
refineries in the country, adding that there were some adjustments in
the timelines for executing the TAM. She noted that although there were
plans to build new refineries, existing ones would still be maintained.
The minister, however, incurred the
wrath of the lawmakers when her security aides prevented journalists
from recording her testimony. She, at a point during her speech, pushed
off a reporter’s tape recorder, insisting that the device should not be
placed by her side.
Chairman of the committee, Senator
Magnus Abe, had to caution Alison-Madueke and threatened to throw out
her security aides if the minister refused to comport herself and allow
journalists to do their work.
Earlier, the members of the committee had accused the PPMC of operating a system that bred corruption.
Chairman of the committee, Senator
Magnus Abe, said a visit to the refineries on oversight functions showed
that the style of operation at the depots was tardy and subjected the
Independent Petroleum Marketers Association of Nigeria to untold
hardship.
Abe said, “We were at the Port Harcourt
Refinery and we saw about 5,000 people waiting to get products; some of
them told us that they had paid for the products five months back and
were yet to get the products. How do you expect them to sell at the
official price?”
He asked the minister, PPMC and the NNPC
to address alleged unwholesome practices at the depots. He added that
it was the only way to ensure that petroleum products were objectively
and effectively distributed.
Reacting, the minister said she was not
aware of the observation raised by the committee regarding the practices
at the depots. She explained that she had no preferences in the
allocation of petroleum products.
Momoh noted that the problem of vandalising had been a major constraint to smooth product distribution,.
The PPMC boss said the easiest and
cheapest means of transporting products were through pipelines but that
continued disruptions by vandals had stalled the smooth distribution of
the products across the country.
According to Momoh, the company has
identified about 774 vandalised spots in the distribution network,
adding that stakeholders and communities could help in keeping the
pipelines safe. has identified sharp practices and shoddy operations at
depots of the Nigerian National Petroleum Corporation as factors
responsible for the increase in the price of Premium Motor Spirit
(petrol) at filling stations.
Although NNPC officials said they were
making efforts to make the product available and blamed the continued
scarcity on the activities of recalcitrant marketers,Secretary of the
Major Marketers Association of Nigeria, Thomas Alawore, admitted before
the committee that marketers incurred hidden charges before they could
access the products.
He said, “There are hidden costs. You
have to pay some money to the unions. Even the security agencies along
the line will collect their own. You may go home with an official
receipt which states that you bought the product at N84.66 per litre,
but you have to add those hidden costs.”
SOURCE: The Punch - Nigeria's Most Widely Read Newspaper 9 October 2012.
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