House Moves To Probe Lingering Fuel Scarcity

The House of Representatives has wielded in into the lingering petroleum crisis as it has on Wednesday, December 9, asked its Committee on Petroleum Resources, Upstream and Downstream to probe the continued scarcity of the product in the country.

The House intervention came on the heel of a motion moved by Omoregie Ogbeide-Ihama (PDP-Edo) which got the nod of the members of the House.

Ogbeide-Ihana explained that Nigerians were passing through difficult time getting the product. He added that the cause of this problem is absent of a functional refineries to serve local demand, Vanguard reports.

“This is responsible for the dependence on imported products, hence the regular fuel crisis in the country which is causing untold hardship to Nigerians,’’ the lawmaker said. According to him, the Kaduna, Port Harcourt and Warri refining and petrochemical companies were reported by the Nigerian National Petroleum Corporation (NNPC) to have incurred debts amounting to about N120. 07 billion in August and September.

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“While their revenue in August was N146.617billion, their expenditure was N207.287 billion; in September, the revenue generated by the refineries was N112.514 billion and expenditure was pegged at N171.914 billion,’’

“The capacity utilisation of Warri and Kaduna refineries in September was said to be zero per cent as both plants did not process crude in that month.

“The Port Harcourt Refining Company was reported to have produced at 4.15 per cent capacity which is a far cry from its installed capacity.’’

Nnamdi Agbo (PDP-Enugu) also called on the federal government to deregulate the oil and gas sector.

Sergius Oseasochie (APC-Edo) advocated that the refineries should be handed over to competent and reliable companies to handle on behalf of the government.

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In his contribution, Hassan Saleh (PDP-Benue) expressed worry that none of the companies issued licenses to establish refineries in the country had done something in that regard.

Also contributing on the debate on the motion, the majority leader of the House, Femi Gbajabiamila (APC-Lagos) said that it was unfortunate that there is no explanation forthcoming on why the refineries had failed to function.

Gbajabiamila wondered why refineries in other climes work while that of Nigeria failed to work.  He caution against the idea of removing subsidy of petroleum product now as it will have adverse effect on the generality of the people.

In a related development, President Muhammadu Buhari had been advised to remove fuel subsidy as it is best time to act according to the World Bank.

John Litwack, the World Bank’s lead economist, said during the the Executive Council of the Federation meeting.

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