NNPC, MRS disagree over source of bad petrol

The Nigerian National Petroleum Corporation and MRS, one of the oil companies linked to the importation of adulterated petrol are at loggerheads over who is responsible for the importation of the adulterated fuel in the country.

Apparently disturbed by the development, the federal government yesterday ordered an investigation into the bad fuel that had damaged the engines of some vehicles.

Group Managing Director of NNPC, Mallam Mele Kyari had on Wednesday named MRS, Oando, Duke Oil and Emadeb-consortium as oil companies responsible for bringing the bad petrol into the country.

He revealed the presence of Methanol in four petrol cargoes imported by MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil.

READ ALSO: MRS oil reveals source of adulterated fuel, blames NNPC

The NNPC helmsman maintained that cargoes’ quality certificates issued at the loading port in Belgium, by AmSpec Belgium, indicated that the product complied with Nigerian specification.

Furthermore, he said the NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge, which showed that the cargo also met the country’s standard.

Kyari disclosed that the NNPC had ordered the quarantine of all un-evacuated volumes of the contaminated fuel that led to the disruption of the petrol distribution value chain, in order to prevent further distribution.

Kyari noted that the NNPC first received a report on January 20, 2022, from its quality inspector of the presence of “emulsion particles” in petrol cargoes shipped to Nigeria from the European country.

But the NNPC GMD’s explanation ran contrary to an earlier press statement released by MRS, where the company denied culpability.

READ ALSO: FG directs NNPC, oil marketers to ensure supply of petroleum products

In its statement MRS had stated that it remains a responsible corporate citizen and will not be involved in the purchase, importation, distribution or marketing of substandard petroleum products in the country, coming short of directly accusing the NNPC of complicity.

It stated that the NNPC is the sole supplier of Petroleum Motor Spirit (PMS) in the country and that the corporation through its trading arm, Duke Oil imported the fuel.

“Due to the current subsidy regime, NNPC is the sole supplier of all PMS in Nigeria. Consequently, the NNPC through their trading arm Duke Oil, supplied a cargo of PMS purchased from international trader Litasco and delivered it with Motor Tanker (MT) Nord Gainer. This vessel was discharged in Apapa between the 24th and 30th of January, 2022,” it had alleged.

As one of the beneficiaries, MRS said it received the product in its depot and distributed the product to only eight of its stations in Lagos.

READ ALSO: Fuel crisis escalates in Lagos as many petrol stations remain locked

The company described the allegation trending at the time as mischievous, false and untrue.

But the NNPC boss maintained that the methanol blended petrol was imported into the country by the suppliers, including MRS, through its Direct-Sales-Direct-Purchase arrangement.

The arrangement allows the national oil company to deliver monthly crude oil lifting on Free on Board (FOB) basis to suppliers who in return are supposed to deliver petroleum products of Nigerian standard specification to NNPC.

But according to the NNPC, the companies that supplied the methanol blended petrol included MRS which made the importation through a vessel named MT Bow Pioneer.

He said while Emadeb/Hyde/AY Maikifi/Brittania-U Consortium brought in the fuel through a vessel identified as MT Tom Hilde, Oando allegedly brought in the product through a vessel named MT Elka Apollon, while Duke Oil came through MT Nord Gainer vessel.

Fuel queues had been building in Lagos and the Federal Capital Territory (FCT), Abuja, due to fuel shortages caused by the withdrawal of the contaminated petrol from the market. But NNPC was said to be seeking thousands of tonnes of the product to ameliorate the situation, the report said.

Nigeria depends almost entirely on imports to meet its domestic fuel needs after many failed attempts to revamp the dilapidated refineries, with daily consumption exceeding 60 million litres.

NNPC handles nearly all the imports through crude-for-fuel contracts, known as Direct Sale, direct Purchase (DSDP), with consortia of local and foreign oil firms.