Yemisi Izuora
In continuation of efforts to check sharp practices in the downstream sector of the oil & gas industry, the Department of Petroleum Resources (DPR) during a routine surveillance drive carried out under the Eket Field office, discovered that a depot operated by Hudson Petroleum Limited in Calabar, Cross River State was hoarding PMS.
DPR investigations revealed that despite receiving 13,606,064 litres of the product in the depot late in December 2015, the operator still contrived to load out very sparingly and was in addition selling at N95.00 per litre, thereby violating Government’s stipulated ex-depot price of N76.50k.
Being mindful of the need to ensure availability of products, especially PMS to the public at all times in order to ease attendant hardship, DPR made several attempts to compel the depot to increase the volume and frequency of truck-out and also to revert to the official ex-depot price, but the company persisted in this unwholesome practice.
Consequently, the depot has been placed under seal specifically for selling above the regulated depot price and for hoarding of PMS. It has been mandated to pay the punitive fine of ten million naira (N10,000,000.00) only, and in addition, the company has been suspended from operations for 3 months in accordance with the new sanctions regime recently issued by DPR.