DPR realises N10.7m from penalties against erring marketers

SHARP practices among marketers and operators of filling stations have yielded about N10.7 million to the coffers of the Department of Petroleum Resources, DPR. Although penalties for sharp practices are not usually part of the major sources of revenue for the industry regulator, however, the agency said the fines became necessary to prevent marketers from taking advantage of consumers due to the current fuel shortages being experienced in Nigeria.

Data exclusively obtained by Vanguard on Friday, showed that the amount was realised for various market offences from the sale of premium motor spirit, PMS, also called petrol in the Lagos Zonal Office, which covers Lagos, Ogun, Oyo and Kwara states. Specifically, about 66 filling stations were fined for selling PMS above regulated and under-dispensing their pumps, from January 1 to April 18, 2016. Market malpractices Speaking on the unethical practices, the Zonal Operation Controller, Mrs. Uto Iheukwumere, agreed that “Complaints are still coming about stations selling above regulated price of N86.50,” but added: “we are going after them regularly.” Sharp practices have become the order of the day among downstream operators, cutting across both major and independent marketers, who cash in on the scarcity situation to sell above the approved rate or under-dispense their pumps. 

A consumer, who identified himself as Mr. Ola Femi, complained that he bought petrol at N250/litre from one of the major marketers’ outlets in Oyo. According to him, “Not only did I pay almost 300 percent above the regulated price, but what they filled in my tank was half water and half petrol,” adding, “I am still tackling the engine problem that has caused my vehicle.” Corroborating, another motorist, Mrs. Angela Agu, told Vanguard: “These marketers are just callous. After queuing for three hours, I bought at N86.50/litre quite alright; but guess what? I normally fill my tank with N3,500 or so, about 40 litres; by the time I drove off my meter gauge did not even rise up to half the tank, meaning the outlet sold me half air.” To underscore the high incidence of under-dispensing, the bulk of the money realised from penalties during the four month period or N10.5million came from volume manipulations. Enforcing regulation As marketers have become more brazen in their unethical practices, Iheukwumere told Vanguard that DPR has also stepped up its game in apprehending them, as the agency has adopted several measures to stem the tide. 

She said: “We have also drawn a roster to cover the outskirts of Lagos and other states under the zone. We have stepped up monitoring activities, as we have our men following the products from the depots to the distribution points. “These monitoring teams don’t just monitor the retail outlets; they also monitor the depots because there are complaints that some depots are selling above ex-depot price. But so far, there is no proof on this. “The purpose of following the products from the depots to their destinations is to avoid the incidence of hoarding and diversion. You hear NNPC saying they have brought in some cargoes and discharged this much product, we will ensure distribution is done rightly.” As a result, she argued that it is uncharitable to say DPR is not doing enough in terms of market supervision, even as she admitted that “we don’t have enough men to man all the outlets in all the areas at the same time. This is why we are taking the areas one after the other.”

 She also thanked some members of the public for facilitating the apprehension of some of the outlets indulging in malpractices, saying: “Some members of the public have been very helpful in giving us useful information on the operations of the retail outlets, especially when they are misbehaving. “But the public can do even more for us to catch more erring marketers. Anywhere you buy above the official rate or you notice that the pumps under-dispensed, don’t ignore it because you are anxious to buy fuel, call us; telling us the exact location and name of the outlet and see if it will not be penalised.” She equally encouraged motorists in all parts of the country to assist DPR in carrying out its monitoring and supervising the market, saying, “People should call us from everywhere; there are seven DPR zonal offices and 17 regional offices. 

“We have set up call centres and if you visit our website you will see the official number of all the zonal and regional offices. So this is a shared responsibility so that DPR can become even more effective in the discharge of its functions. Penalties against market infractions Although under-dispensing appear to be prevalent in the market malfeasance, Iheukwumere however, said DPR has fixed penalties for different offences, as listed below: Hoarding of product – N10million Selling above pump price – N1million Product diversion – N200/Litre Under-dispensing – N100,000/pump She explained that “In addition to the fixed penalties, after three infractions DPR will revoke the marketer’s licence. And if the marketer was found to be selling above the pump price, not only will the product be sold instantly at the fixed rate, the station will be sealed for three months.” She added that the agency also engages in on-the-spot assessments, and if any marketer is found guilty of hoarding, apart from the N10million fine, the product will be dispensed free to motorists.” 

Iheukwumere urged motorists to be patient and not to panic-buy, saying: “The Minister (Petroleum Resources) and NNPC are doing their best to restore normalcy in fuel distribution, particularly of PMS, which is in short supply.” As you can see, from the second quarter allocations, more serious operators have been licenced to import the product. “Motorists should just not go and queue just for the sake of it; except they really need the product and not for fear that they might not see to buy when they need it.”

 She noted that in addition to building the product reserves, NNPC is also concentrating on getting the refineries to work to fill up the supply gaps, adding that the fuel shortages would soon be over. In confirmation, the Warri Refinery was brought back to operations on Saturday, as the Minister of State for Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu, re-commissioned the Escravos-Warri-Kaduna crude pipeline. Accordingly, both the Warri and Kaduna refineries are now receiving crude simultaneously for the first time in many years. When the Kaduna Refinery begins production at month end, it means that all the refineries would now be working simultaneously, with the Port Harcourt Refinery have been re-streamed a couple of weeks ago.