Nigerian- Sharp practices in the downstream
sector of the Nigerian petroleum industry have continued to have a heavy toll
on end users as many fillings stations selling Premium Motor Spirit also known
as petrol in the country have resorted to under-dispensing of the product.
The nefarious activity perpetrated by petroleum marketers has gone unnoticed by
many motorists as they drive into the filling stations to fill their tanks.
For every ten liters sold to a motorist, it is not unlikely that he drives away with less than seven litres due to the adjusted meters by the filling stations. The implication is that the petroleum marketer gains additional three liters.
According to findings, petroleum marketers make about N4 per litre on a truck load of 33,000 liters as they buy around N93 per liter (depot price plus transportation cost) to bring the cost of purchase to N3.069.000. When sold at the regulated price of N97 per liter, actual profit will amount to N132, 000.
But to hike their profit margin, investigations revealed that the marketers adjust their fuel pump meters. For instance, ten liters of fuel will cost N970 at the rate of N97 per liter. But with the adjusted meter, motorists pay the actual price (N970) but drives away with about six liters which amounts to N582. So there is a difference of N388 which has fraudulently gone to the purse of oil marketers.
To magnify the marketers smooth operation, multiply N388 by the average of 10 million under-dispensed litres out of the 30 million litres of petrol consumed daily in the country and what you get is N3.8 billion loss to motorists.
Nigeria’s petroleum regulator, Department of Petroleum Resources, DPR, saddled with the responsibility of regulating, monitoring and enforcing the laws in the sector, used the Seraphin Can to expose filling stations involved in the nefarious act in Lagos recently.
The ten-liter Seraphin Can is used by the DPR to ascertain the exact dispensing meter measurement of filling stations. When filled to the level of ten liters, dispensing meters that have been adjusted will show above ten liters on the display board. When this occurs, the filling station is shut by DPR officials.
DPR said over 500 filling stations had been shut for under-dispensing and other related offences.
According to the regulatory body, other offences committed by filling stations include compromise of safety standards and lack of proper storage facilities.
The DPR Manager, Downstream, Lagos Zone, Mr. Kunle Soyebo, said the purpose of the recent monitoring which yielded the filling stations under-dispensing was to ensure strict adherence to rules and regulations in the downstream sector.
“The exercise, which you have just witnessed, is carried out by our men twice every week. Any filling station operator that fails to comply with rules and regulation will have his licences revoked,” Soyebo said.
“For the affected stations, we have issued them letters to report to our office and, if they fail to show up, their licences will be revoked. So far, we have been able to shut over 500 filling stations across the country. These stations will remain shut until they comply with our rules and regulations.”
During the exercise, it was, however, discovered that there are some good guys in the business who adhere to the rules on the dispensing of petroleum products.
Major oil marketers were not found wanting as they maintained a clean sheet in their operations while their names were engraved in the good books of the DPR.
The nefarious activity perpetrated by petroleum marketers has gone unnoticed by
many motorists as they drive into the filling stations to fill their tanks.For every ten liters sold to a motorist, it is not unlikely that he drives away with less than seven litres due to the adjusted meters by the filling stations. The implication is that the petroleum marketer gains additional three liters.
According to findings, petroleum marketers make about N4 per litre on a truck load of 33,000 liters as they buy around N93 per liter (depot price plus transportation cost) to bring the cost of purchase to N3.069.000. When sold at the regulated price of N97 per liter, actual profit will amount to N132, 000.
But to hike their profit margin, investigations revealed that the marketers adjust their fuel pump meters. For instance, ten liters of fuel will cost N970 at the rate of N97 per liter. But with the adjusted meter, motorists pay the actual price (N970) but drives away with about six liters which amounts to N582. So there is a difference of N388 which has fraudulently gone to the purse of oil marketers.
To magnify the marketers smooth operation, multiply N388 by the average of 10 million under-dispensed litres out of the 30 million litres of petrol consumed daily in the country and what you get is N3.8 billion loss to motorists.
Nigeria’s petroleum regulator, Department of Petroleum Resources, DPR, saddled with the responsibility of regulating, monitoring and enforcing the laws in the sector, used the Seraphin Can to expose filling stations involved in the nefarious act in Lagos recently.
The ten-liter Seraphin Can is used by the DPR to ascertain the exact dispensing meter measurement of filling stations. When filled to the level of ten liters, dispensing meters that have been adjusted will show above ten liters on the display board. When this occurs, the filling station is shut by DPR officials.
DPR said over 500 filling stations had been shut for under-dispensing and other related offences.
According to the regulatory body, other offences committed by filling stations include compromise of safety standards and lack of proper storage facilities.
The DPR Manager, Downstream, Lagos Zone, Mr. Kunle Soyebo, said the purpose of the recent monitoring which yielded the filling stations under-dispensing was to ensure strict adherence to rules and regulations in the downstream sector.
“The exercise, which you have just witnessed, is carried out by our men twice every week. Any filling station operator that fails to comply with rules and regulation will have his licences revoked,” Soyebo said.
“For the affected stations, we have issued them letters to report to our office and, if they fail to show up, their licences will be revoked. So far, we have been able to shut over 500 filling stations across the country. These stations will remain shut until they comply with our rules and regulations.”
During the exercise, it was, however, discovered that there are some good guys in the business who adhere to the rules on the dispensing of petroleum products.
Major oil marketers were not found wanting as they maintained a clean sheet in their operations while their names were engraved in the good books of the DPR.
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