01 Feb 2016

DPR to impose N10 million fine on erring depots

The Director of Petroleum Resources, Mr. Mordecai Ladan recently in Abuja announced new sanctions regimes for the downstream sector. DPR would henceforth be imposing a ten million naira (N10 Million) fine on any depot found to be hoarding products or selling (PMS) above the government stipulated Ex-depot price of N76.50k. The facility would also be suspended for a three month period.

Ladan made the announcement while holding an operations meeting with all DPR field and zonal operations controllers in the country. He charged them to ensure that depot owners sold PMS to marketers at N76.50k and to subsequently uphold the new pump price of N86.50k (N86.00k for NNPC stations) at retail outlets.

This was clearly in line with a ministerial directive conveyed from the office of the Hon. Minister of State for Petroleum Resources, DR. Ibe Kachikwu in the wake of the Federal Government’s announcement of new petrol prices in the country.

In furtherance of the new sanctions regime, DPR is now extracting a one million naira (N1 Million) fine on any retail outlet owner for an unauthorised removal of a DPR seal from their pumps or facility, this infraction would in addition attract a six months suspension or outright revocation of the operating license.

Ladan also directed all operations controllers to encourage the public to report suspected illegal outlets to the DPR or law enforcement agencies for possible criminal prosecution.

Incidents of pump price manipulation by a retail outlet would attract a one hundred thousand naira (N100,000.00) fine per pump. While a two hundred naira (N200.00) fine would be imposed per litre of the diverted quantity of regulated product.