Osinbajo: NNPC not FG bears the price of gas subsidy

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    Osinbajo at Heyden Station in VGC on Christmas Eve: says NNPC pays the current gas subsidy

    Vice President Yemi Osinbajo clarified immediately that the NNPC and never the Federal Government pays for the  gas subsidy that has emerged with the N171 touchdown value as in opposition to the official retail value of N145.

    In an interview with newsmen in Apapa Lagos, he mentioned for the reason that NNPC buys the gas, it bears the price.

    “NNPC is trading in fuel; the Federal Government is not, at the moment, paying for any subsidy. NNPC is trading. If you are buying and selling fuel, you would have to be able to pay for it. So, it’s not a question of government provision for subsidy, the Federal Government, at the moment, isn’t paying any subsidy. And don’t forget that the way that the NNPC trades is that, in many cases, NNPC is actually giving fuel; there is 445, 000 barrels of fuel. So really what you are seeing, in many cases, is more or less an exchange for PMS. So at the moment NNPC is paying the cost”.

    Osinbajo spoke with journalists after visiting Oando and Total gas depots in Apapa space, a day after he additionally visited stations within the Lekki-Ajah axis of the town.

    He reiterated that the Buhari administration was working around the clock to finish the gas disaster as quickly as attainable.

    (watch a part of the press interview:

    The Vice President additional mentioned that one of the crucial necessary targets of the Buhari administration is to make sure that the common Nigerian citizen shouldn’t be once more put by means of the ache of a rise in gas value.

    The Vice President, alongside the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, additionally held a closed-door assembly with oil entrepreneurs in Lagos in a bid to resolve the problems concerned with provide of gas nationwide and clear up the queues at filling stations.

    “We have been here holding a meeting with major oil marketers and as you see everyone is at work trying to ensure that the petrol queues are cleared. We are trying to look at some of the issues and what needs to be done to ensure that things move very quickly,” the Vice President mentioned.

    “Just yesterday, Mr President tried to see how precisely he might actually work on the issues that we’re experiencing and in a short time clear up the queues and make sure that everybody is ready to have a contented vacation; that’s precisely why we’re right here immediately.

    “The GMD of the NNPC is up in Abuja and I’m here with the Honourable Minister (of State for Petroleum Resources), trying to take a look at what the problems of the marketers may be and also what other issues there may be getting the products to petrol stations across the country.”

    “We had a very good meeting and we hope that in the next couple of days we will be able to resolve the petrol queues and l hope this rather sad episode come to an end as quickly as possible.”

    Below is the transcript of the Osinbajo press interview:

    Q: On the main points inflicting gas shortages, particularly within the Yuletide season.

    Vice President: I believe that a part of the explanation why you discover these disruptions on the finish of the yr is due to what we described as this winter phenomenon, the place costs of petroleum merchandise go up within the winter month in lots of elements of the world, clearly due to the locations the place we’re getting the PMS from and the conditions on the market at the moment. Obviously that provides rise to issues of those that are bringing in gas, and we had one or two brief deliveries on account of a few of these issues.

    So clearly, what has occurred right here is that on account of a few of the brief deliveries that we have now skilled, panic shopping for, hoardings elsewhere began. So these are largely the problems. So we’re additionally making an attempt to make sure that these kinds of disruptions received’t occur sooner or later and that’s one of many the reason why we’re spending a little bit of time to have a look at a few of the points.

    There’s a premium on merchandise. That’s what it often would occur on the finish of the yr, however if you happen to discover it didn’t occur final yr in any respect. We had a really clean December 2016, there was no disruption in any way; all of it went very easily. So we will truly handle these conditions. It is when you’ve got an issue, a disruption that you simply often would discover the hoarding. That’s what you might be seeing immediately, we’re seeing a little bit of hoarding and the DPR has been going around the stations making an attempt to control that and, in some circumstances, have to shut down the stations and power the petrol stations to proceed to promote.

    So actually all that may be completed is regulation, and extra enforcement by the DPR, which is what the DPR has tried to do. But l suppose the final word answer is to have sufficient provide going in every single place. Once you’ve got sufficient provide in every single place, the hoarding and disruption will cease.


    Q: On rumours on social media a few attainable improve within the value of gas.

    Vice President: We are definitely not anticipating to extend oil costs in any respect; the federal government has completely no intention of accelerating gas costs and that’s it.

    Q: Shortfall in provide and NNPC as sole importer of petroleum merchandise couldn’t maintain provide, the unavailability of Forex, what are you doing?

    Vice President: First let me clarify that you’re proper as a result of NNPC is doing a lot of the importation. But don’t overlook that NNPC additionally depends on the unbiased entrepreneurs and, in some circumstances, the IOCs, to usher in the gas. NNPC itself doesn’t go and do the offers, because it have been. So, it actually does lie on the entrepreneurs to usher in the gas on a contract foundation.

    What the unbiased entrepreneurs would slightly do is to usher in their very own merchandise. So that’s one other concern, as a result of we have now to have a look at the pricing and we have now to make certain that we’re capable of cope with the problems of pricing.

    I believe that over time, in actual fact if you happen to have a look at the previous few months, NNPC has been importing and so they have been doing an excellent job as a result of we didn’t have a scarcity in October and November, it’s solely in December that we had a disruption. So, l suppose it’s honest to say that NNPC did an excellent job of its importation all the way in which as much as when we have now this winter disruption.

    But, in fact, in the long run, we’re going to be reviewing a few of these points and we’re going to try how it’s that a greater steadiness may be struck. I believe the honest factor to say although is that each one the way in which as much as the previous couple of weeks, NNPC has completed a wonderful job, and so they have been truly importing a lot of the merchandise.

    Obviously we have now to maintain fine-tuning and reviewing to make certain that we’re doing the perfect that’s attainable within the circumstances. But l suppose that for presidency, one in every of our most necessary targets is to make sure that the common citizen shouldn’t be once more put by means of the ache of a rise in gas value, that’s an important goal for presidency. And we have now to maintain creating that steadiness, and we’ll make sure that we create that steadiness.

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