The Executive Secretary of Petroleum Product Pricing and Regulatory Authority, Senator Farouk Ahmed, said on Tuesday that the fuel scarcity currently being experienced across the nation was caused by the two rounds of devaluation carried out by the Central Bank of Nigeria between November last year and February 2015.
The disclosure came just as officials of the Nigeria National Petroleum Corporation, and heads of some subsidiaries under it failed to appear before the Senate Committee on Petroleum ( Downstream) to defend their 2015 budget.
Chairman of the Committee, Senator Magnus Abe , lamented that by their action, they had deprived Nigerians an opportunity to know reasons behind the current fuel scarcity and possible way out.
But Ahmed, told the committee that the devaluation caused huge confusion in the oil sector as the petroleum agency did not know the exchange rate to be used for payment on fuel importation.
He said the marketers could not deliver the cargoes of fuel expected from them because they were not sure of the exact delivery cost as a result of the devaluation, adding that the old template used for paying the marketers was no longer useful.
Ahmed said PPPRA had to seek the advice of the CBN before it could eventually draw up a new template.
He, however, stressed that the crisis had eventually been resolved as the Budget Office on Monday approved payment for outstanding bills that the marketers are being owed.
He also said the truce was brokered after a meeting of the Ministry of Finance, PPPRA and other relevant agencies.
Ahmed said, “The recent events have to do with delay in the arrival of cargoes. Non-arrival of cargoes made it difficult for petroleum motor spirit to be delivered. What actually complicated it was the devaluation of naira – two times.
“The first one that took place on November 28 devalued Naira from N155 to N168 to $1. The second one that took place on February 18 brought the exchange rate to N199 to $1. “These two developments brought a lot of confusion into the oil sector.
“Marketers were not sure of the actual delivery cost. We had to draw a new template as advised by the CBN. The delay we have now is caused by the November devaluation. But the reality is that the policy is clear now.
“The Minister of Finance, PPPRA and other agencies are working closely to ensure that outstanding bills are paid. And that one had been done now.
“Yesterday, (Monday) we got an approval from the Budget Office for payment of all outstanding bills. We have adjusted the template now. We have to put the exchange rate at the interbank rate. Now, we have a direction”
Meanwhile, the non appearance of the the NNPC management to appear before the committee to give its own side of the fuel scarcity story, had prompted the committee chairman, to read a riot act to the corporation.
Abe said, “We invited NNPC to come and defend their budget. They didn’t show up. They don’t even have the respect to give any response to the invitation. We are directing the clerk to re-invite the NNPC, Department of Petroleum Resources, Pipeline Product and Marketing Company and all refineries.
“All of them must appear before this committee on Thursday. All of us have our roles in constitution. The letter should contain a a strong warning that NNPC must never repeat this before the committee.
“NNPC has never agreed to bring their budget for discussion. This is the same problem we have every year. I’m disappointed that after we agreed on this issue last year, we are still back to it.” Click to signup for FREE news updates, latest information and hottest gists everyday
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Where is Alhaji Adamu Muazu? Did you hear that? Foolish man, this is to show all of us supporting Prsident Goodluck Jonathan that his PDP and Cabinet members are his problems. Adamu Muazu was busy blaming the APC members for the fuel scarcity that is hitting and bitting the country where as the cause of the problem is the people piloting the affairs of the economy. Mr. President, open your eyes well and see that all these people are working against you. I tend to agree with Pa Edwin Clerk.
ReplyDeleteToothless bull dog. All of you in the Senate are hooligans. How do you expect NNPC to appear before the National Assembly when Mr. Goodluck Jonathan is the President of the country. How many times did you guys invite the Petroleum Minister, did she show up and what did you hooligans do? Nothing. Please you guys should tell us something different. We are tired of this your nonsence invitation now and then. Only looking for a way to build up their pockets with dollars. Now Nigerian economy is in shambles and no body even the finance minister and the CBN Governor know what to do because there is no clear focus.
ReplyDeleteThe reason giving by these man is laughable, so naive and unbelievable. How on earth can devaluation done weeks back be the cause of the scarcity? APC moles are at it again, they should remember that is millions of Nigerians that they want to rule over are going through all these hardship they are causing even in the power sector through sabotage. He that sows evil shall reap evil in the days of harvest.
ReplyDeleteits getting clearer by the day the type of leadership we find ourselves in as a nation. its just very pathetic. ofcourse its the leadership that has no direction, focus and sense of purpose order than being power acquire money and power and divulge propagander of lies in different shades and colours. it is high time every Nigerian see clearly no. this government has no future for this country , its real, lets put sentiment and partisanship aside, pls Nigerians wake up. lets have a change to at leaset give up for for now and in future. if pdp rule us in the next 4 yrs, certainly Nigeria is doomed . no sentiment about this, cos all they claime to have achieve are false, most roads, claimed done were not started by them, if they are responsible why will they wait tll the opposition push them before now rushing to achieve things which they should have started six yrs, ago. pls don't be deievd , take there monies and make sure u vote them out. pdpigs.thanks
ReplyDeleteIs only the fools that thus not know what the PDP and our federal government stand for? Bunch of liars.
ReplyDelete