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THE GUARDIAN
CONSCIENCE, NURTURED BY TRUTH
LAGOS, NIGERIA.     Tuesday, June 15 2004
 

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Labour may picket filling stations over fuel prices
By Yakubu Lawal, Yetunde Majekodunmi, Sunny Obidigbo and Shola Yusuff (Lagos), Julius Alabi (Akure) and Aniekan Bassey (Uyo)

L ABOUR is considering picketing fuel stations to force compliance with last week's court order that the prices of petroleum products in the country be reverted to their pre-February levels.

This option follows the apparent refusal of the marketers to obey the order by Justice Roseline Ukeje of the Federal High Court, Abuja, which had paved the way for the resolution of the recent fuel crisis in the country.

The marketers, across the country, have since either shut their stations or continued to sell at high rates to desperate buyers.

The Nigerian National Petroleum Corporation (NNPC) had in a letter to the marketers specifically given instructions for compliance with the order. The letter, a copy of which The Guardian got yesterday, reads in part: "The management of (NNPC) has directed that all prices ex-depot be reverted to old prices of N33.50 for PMS, N32.50 for AGO and N31.50 for DPK"

The President of the Nigeria Labour Congress (NLC), Mr. Adams Oshiomhole, had in a recent letter urged the Inspector General of Police, Mr. Tafa Balogun, to enforce the court order failing which the workers might explore self help.

NLC's spokesman, Mr Denja Yakub, said yesterday that Labour might be compelled to picket the petrol stations over their refusal to revert to the agreed price of N41.00 per litre.

Yakub noted that most stations were not selling although they had fuel.

He told The Guardian: "When we suspended the strike, it was on the belief that the marketers had started complying with the court order to revert prices of petrol to N41.50 per litre. But recent developments revealed that although most of these marketers merely changed the prices on their boards, they are all still dispensing above the recommended price."

The NLC spokesman continued: "Going by this development, the NLC has little or no option but to start ensuring compliance by carrying out a picketing action on those erring marketers."

Some major marketers at the Apapa depot in Lagos, for instance, refused to lift the products when The Guardian visited yesterday, while many outlets belonging to the majors were also not selling to the public.

But lifting began at the NNPC depot in Ejigbo, also in the state, as early as 8 a.m. Over 80 trucks had loaded by the time The Guardian visited.

The Secretary of the Independent Marketers Association of Nigeria IPMAN, Ejigbo branch, Mr. Toba Shinkaiyi, told The Guardian that fuel lifting at the depot began since last Saturday.

It was learnt yesterday that the Department of Petroleum Resources DPR has intensified efforts to track down those marketers who are yet to fully comply with the court order.

Informed sources said yesterday that the DPR's monitoring team had doubled its operational schedule with a view to sanctioning erring marketers.

But the amount being paid by the marketers to the Petroleum Equalisation Fund (PEF), which was raised from 80 kobo per litre to N1 per litre, has not been reversed. This was disclosed by the secretary of the National Union Of Petroleum and Natural GAS workers (NUPENG) Ejigbo branch, Mr Samuel Olagbegi.

At the Apapa depots of the major marketers, Mr. Isaiah Yusuf, Chairman Petrol Tanker Drivers Association of Total depot branch of NUPENG, said that the fuel tanker drivers refused to lift products because the prices had not been reduced by the marketers especially Total.

"We have stocks at the depot but we are not lifting because the prices have not come down," Yusuf stated.

In Lagos metropolis, many filling stations still refused to sell to motorists. For example at the Total station opposite NNPC depot in Ejigbo, diesel (AGO) was selling for N51 per litre while PMS (petrol) though not in stock had a price tag of N42.90 per litre.

At the AP station on Okota road, the attendant said that they were not selling because their truck was yet to load at the NNPC depot and that the station had exhausted its stock.

Olagbegi told The Guardian that IPMAN decided to revert to the old price of N41.50 or N42.80 in line with the directive of the court order.

The chairman of its Mosimi Branch, Mr Femi George, said that the union directed its members to revert to old prices to bring economic activities back on track.

He disclosed that officials of the union would now meet with the NNPC to resolve the issue of compensation for its members.

But the Chairman, Petroleum Products Pricing Regulatory Agency (PPPRA), Chief Rasheed Gbadamosi, yesterday advised Nigerians not to expect uniform prices for the products.

According to agency reports, Gbadamosi in Abuja said that since the costs of fuel importation and operation vary among marketers, they were not likely to adopt the same pump prices for their products.

He said: "For instance, the cost of import of Conoil differs from that of African Petroleum and Oando, hence each marketer has a different pump price." Gbadamosi said pump price disparity should exist since the downstream oil sector had been fully deregulated since October last year.

The PPPRA chief added that since the downstream sector was deregulated marketers could import and sell within N39.50 and N44.00 bracket."

He described PPPRA as "a prisoner of heritage" whose role is to ensure reasonable pump prices of petroleum products in a deregulated regime.

"We have inherited some problems in the downstream operations that require legislation to get solved," he said.

On the role of Petroleum Equalisation Fund, Gbadamosi said he could not say what becomes of the body in a deregulated era until the bill before the National Assembly on the matter was passed.

Long queues have already returned to filling stations in Akure, the Ondo State capital, following the hoarding of petroleum products by marketers.

Investigation by The Guardian yesterday revealed that the marketers are hoarding the fuel in protest against the order of the Abuja High Court, which asked them to reverse to N38 per litre.

Some of them argued that it was better for them to hoard the products than to sell at a loss, asking: "Can they expect us to reverse it immediately without giving us some time to finish selling the products we purchased at higher prices

    • "

      It was learnt that a few of them who are selling fuel are facing a lot of difficulties due to long queues of vehicles and jerry cans.

      The Guardian gathered that petrol, where it is available, is sold for between N44.50 and N51.50 per litre.

      One of the marketers said: "We will not sell our own fuel until motorists and cyclists are ready to buy it at the amount, which will profit us.

      "We are watching them, let them go and buy at the place where they are selling at N44.50, when that gets finished, they will be forced to buy from us."

      Meanwhile, the state deputy governor, Chief Omolade Oluwateru, has appealed to the people to be patient with the marketers to adjust their pumps to reflect the new prices.

      He added that some of them would not like to sell at a price that will not benefit them, the change of the pump price will be gradual.

      Also, in Akwa Ibom State, the petroleum products marketers are yet to revert to the pre-strike prices.

      Some major outlets in the state, especially Uyo, the capital, are selling petrol for between N55 and N60 per litre while kerosene could not be found at the various filling stations except in the black markets on the streets.

      Some motorists who spoke to The Guardian said though fuel was available in the state and even during the strike, prices had been on the high side despite a court order that petrol be sold at N38 per litre.

      The motorists accused DPR and the Weights and Measurement Agencies of complacency in their duties with regard to sale of the petroleum products in the state over the years.

      Already, the state's chapter of the Nigeria Labour Congress (NLC) has decried the refusal of marketers to revert.`

    � 2003 - 2004 @ Guardian Newspapers Limited (All Rights Reserved).
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