Fed Govt Lists Sanctions For Fuel Marketers
The Federal Government, through the Petroleum Products Pricing Regulatory Agency, has warned oil marketers and other operators in the downstream sector against non-compliance with the provisions of the Petroleum Products Commercial Framework Regulations.
The PPPRA, in the regulations seen by our correspondent, said failure to comply with the provisions would attract sanctions, including suspension from operations.
It said, “Downstream operators (including refiners, marketers, depot owners, wholesalers, retailers, traders, etc.) wishing to carry out the business of petroleum products in Nigeria should submit Expression of Interest together with all relevant documents required for registration with the agency.
“All applications for registration with the agency shall be subject to due diligence and execution of contract agreement, and registered operators shall be issued a commercial licence to supply petroleum products.”
According to the PPPRA, any company registered and captured in its database wishing to supply petroleum products into the domestic market shall apply to the agency for Quantity Notification.
“The agency’s QN shall be a precondition for the issuance of DPR’s (Department of Petroleum Resources) import permit,” it said.
The agency said marketers’ quarterly supply plan should be submitted to it at least two weeks before the beginning of every quarter for planning purposes.
The PPPRA said, “Marketers shall pay the agency’s administrative charge on all petroleum products, not later than three days after discharge.
“The agency shall monitor the prevailing market fundamentals and periodically advise on indicative prices for all refined petroleum products.”
The agency said it might from time to time request for information from the marketers, for the purpose of determination of indicative prices in the downstream sector.
“Failure to comply with the provisions of these regulations shall attract appropriate administrative sanctions,” it said.
The PPPRA said failure by oil marketing companies and the Nigerian National Petroleum Corporation to register or renew registration with it would attract a penalty of N500,000 to obtain approval to discharge the cargo and completion of registration processes within one month.
It said importing/supplying products without its QN would lead to a suspension for a period of three months and payment of N1.5m as penalty.
The agency also said submission of forged vessel and other documents by any operator would lead to suspension from operations for a period of three months, and the matter would be referred to the appropriate government agency for investigation and prosecution.
It added that a re-admission fee of N5m would be paid by the erring operator.
