Subsidy Debt: Fuel Depots to Shut Down Natiowide Midnight Today

Ololade Adeyanju/

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has directed it’s members and affiliates to embark on an indefinite strike from midnight owing to the failure of the Federal Government to pay them outstanding subsidy debts.

The association gave the directive in a statement today by it’s Executive Secretary, Olufemi Adewole.

According to the statement, the association took the step to “stop the financial hemorrhage of its members by the painful disengagement of its loyal workforce after over 3 year of engaging the Federal Government in the efforts to secure the payment of all subsidy induced debts owed marketers; efforts which till date have not yielded the desired results hence another approach”.

The statement further reads: “As you’re aware, the association reviewed the suspension of the ultimatum given to the Federal Government in December 25th 2017, which was suspended due to the intervention of well meaning Nigerians and FG’s prmnise 10 immediately pay marketers the outstanding subsidy induced debts.

“Unfortunately as at today, and almost 12 months to the date, all we got so far are invitations to meetings and dialogues which have so far not stopped the daily increasing interest on these debts (which are owed to banks, AMCON, PPPRA and PEF(M)B) and FIRS) and which, also has not manifested as credit to marketers.

“We duly notified the FG through the FMoF and the DMO and directly to the presidency of our financial constraints and the challenge of paying staff salaries beyond 30th November, 2018 except we receive help via the payment of ALL our outstanding debts: subsidy, interest and forex differentials with summation calculated up to 31st December, 2018.

“Further talks to which we are usually invited, which now seem to be their response to our follow ups on these debts, never consented to our requests for full cash payment of these debts hence the regrettable decision we have had to take to let go of our loyal staff who we have sustained through bank facilities at outrageous interest rates.

“Premised on our inability pay December 2018 salaries and to avoid owing staff for work done without any hope of pay, it is hereby agreed that, since our staffs have been disengaged, ALL DAPPMAN Member Depots are not in a position to operate hence WILL SHUT DOWN ALL LOADING OPERATIONS AT MIDNIGHT, Sunday 9th December, 2018 until Federal Government pays our calculated claims: the remaining subsidy (to few members), forex differentials and interest incurred up to 31st December; 2018.

“This decision is binding on all members of the association and full compliance is expected every member company of the association. The association shall revert in the same vein with any other directives as might be deemed necessary.”

Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has assured petroleum products consumers across the country not to engage in panic buying in the countdown to depot shutdown by DAPPMAN) from Monday.

The NNPC, countering the impact of the shutdown said it holds 2.6billion litres of petrol and 90,000 metric tonnes of diesel.

It said the stock is expected to last 52 days, even if no single drop of products is imported.

NNPC Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, gave the assurances this evening.

Ughamadu said the shutdown would not affect products distribution as NNPC has ordered all its depots across the country and those of bulk purchase Marketers it recently entered agreements with to undertake a 24 hour operations to avert any shortages in products distribution in the country.

“All NNPC depots, Petroleum Products Marketing Company (PPMC) throughput partner depots, the Major Marketers depots and depots of Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN) members who signed the Bulk Purchase Agreement, BPA, with PPMC as well as NNPC Retail stations, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) filling stations, will continue to operate at maximum levels to ensure uninterrupted distribution of petroleum products nationwide,” Ughamadu said.

He said despite the threats by DAPPMAN, government was committed to going ahead with settling the N236 billion first tranche of the verified subsidy claims of the Oil Marketers in line with the approval of Federal Executive Council (FEC) and National Assembly (NASS) by Friday, 14 December, 2018 as promised by the corporation’s Chief Operating Officer, Downstream, Engr. Henry Nkem Obih in a statement recently.

The NNPC spokesperson advised members of the public to report to offices of the Departments of Petroleum Resources (DPR) across the states any fuel stations which attempts to take advantage of the situation to inflate products price, saying that the price of PMS remains N145 per litre.

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