No provision to pay oil marketers Q1 2014 – PPMC

The Managing Director of Petroleum Product Marketing Company, Haruna Momoh, said no provision had been made to pay oil marketers for the first quarter of 2014.
Momoh said this when he appeared before the Senate Committee on Petroleum Resources (Downstream) in Abuja on Tuesday.
In spite of this, he added that Federal Government owed the marketers N100 billion for the third and fourth quarters of 2013.
He added however that out of the amount, the Ministry of Finance said it had released N41 billion to the marketers.
“N100 billion was being owed but we have confirmation from the Ministry of Finance that N41 billion has been released for payment for the third and fourth quarter of 2013,” Momoh said.
Momoh said that in spite of the debt, normalcy had returned to fuel supply across the country as the other marketers had begun to import to meet their 50 per cent obligation.
He said the situation was at its worst about two weeks ago.
Momoh said that although the Nigerian National Petroleum Corporation continued to meet its 50 per cent supply, it also had to take products from the National Strategic Reserve Stock.
He said this was to ensure that Nigerians had fuel in full supply so as to reduce the long queues at filling stations across the country.
Momoh said the National Strategic Reserve Stock was at 14 days but added that efforts were being made to restore it to the standard 30 days required by the end of April.
The Deputy Chairman of the committee, Senator Danjuma Goje (PDP-Gombe), wondered how the situation could be normal if out of N100 billion, only N41 billion had been paid for 2013.
Goje further wondered how soon provision would be made for the payment of the first quarter of 2014.
Representative of the Group Managing Director of NNPC, Andrew Yakubu, could not provide satisfactory answers concerning the refurbishment of refineries.
The NNPC was asked to furnish the committee with details of the refurbishment of refineries, record of volumes of sales, crude oil swap and management of aircraft- both chartered and purchased.
The committee adjourned to Wednesday.