From Ndubuisi Orji, Abuja
House of Representatives has resolved to conduct a forensic investigation into current scarcity of Premium Motor Spirit (PMS) that has resulted in resurgence of fuel queues across the country.
Consequently, the House mandated its Committee on Petroleum (Downstream) and Petroleum (Midstream) to undertake the probe and report back to it for further legislative actions.
This followed the adoption of a motion by Billy Osawaru and Philip Agbese on urgent need to undertake a forensic investigation into the challenges affecting the downstream and midstream petroleum sectors in the country.
The panel is also expected to investigate allegations of high cost of PMS, unavailability of fuel stock for downstream domestic refineries.
The committee in the course of its assignment is equally to probe allegations of unfair subsidisation of PMS and other petroleum products racketeering and favouritism in the Pro Forma Invoice System (PFI) regime, indiscriminate issuance of licenses and importation of refined petroleum products.
Also, it is to investigate allegations “of PMS price intervention, allegation of product unavailability to marketers from Nigerian National Petroleum Corporation (NNPC) retail, endless shifting of timelines for refinery rehabilitation, the nefarious activities at petrol depots, presence of middlemen in trading, indiscriminate issuance of licenses, unavailability of laboratories to check adulterated products.”
Furthermore, the panel is to investigate alleged “influx of adulterated products into the country, allegation of non-domestication of profits realised from crude marketing sales in local banks, abuse of the PFI regime, importation of products already being produced in Nigeria, use of international trading companies to resell fuel stock to local refineries,” among others.
Osawaru, in his lead debate, decried the resurgence of fuel queues in filling stations across the country and called on the House to intervene.
The lawmaker said allegations that subsidy on PMS has been returned, lack of clarity over the exact landing cost of fuel, as well as “allegation of importation of substandard products and high-sulphur diesel into Nigeria, sale of petroleum products below fair market value,” are worrisome.
According to him, “in recent times, there has been a resurgence of fuel queues in petrol stations, with allegations of high cost of PMS and non-availability of fuel stock for downstream domestic refineries in Nigeria and disruption of distribution of PMS products.
“There is also an allegation of unfair subsidisation of PMS and other petroleum products which negatively affects competitiveness in the sector. There are also allegations of racketeering and favouritism in the Pro Forma Invoice System (PFI) regime, indiscriminate issuance of licenses and importation of refined petroleum products.
“The alleged return of PMS price intervention with its impact on the domestic market, there is also the allegation of product unavailability to marketers from NNPC retail. Endless shifting of timelines for refinery rehabilitation, the nefarious activities at petrol depots which have affected product distribution and caused scarcity.
“There is also the use of middlemen in trading and has negatively affected domestic crude supply. Disturbed about the indiscriminate issuance of licenses, the unavailability of laboratories to check adulterated products and the influx of adulterated products into the country, allegation of non-domestication of profits realised from crude marketing sales in local banks, abuse of the PFI regime, importation of products already being produced in Nigeria like jet fuel, AGO, etc, use of international trading companies to resell fuel stock to local refineries, and all issues surrounding subsidy regime.”