Posted by By LOUIS IBA on
The Federal Government on Tuesday announced the ban of Gunvor International B.V Amsterdam the firm involved in the importation of the toxic Premium Motor Spirit (PMS) that wreaked havoc on many vehicles in Lagos last week.
The Federal Government on Tuesday announced the ban of Gunvor International B.V Amsterdam the firm involved in the importation of the toxic Premium Motor Spirit (PMS) that wreaked havoc on many vehicles in Lagos last week.
The government has also ordered the product withdrawn from circulation in the country and shipped back to Holland , its country of purchase.
It similarly, demanded that compensation be paid to affected victims who can show evidence with a receipt of purchase from any filling station which is confirmed to have taken delivery and discharged the toxic product to motorists in Lagos.
Director, Department of Petroleum Resources (DPR), Mr. Tony Chukwueke, at a press conference in Lagos decried the insensitivity of the firm in importing into Nigeria ‘blended' Premium Motor Spirit (PMS) otherwise called petrol when it knew that the product was badly blended with a high quality of ethanol which is destructive to engines of vehicles.
Oil marketing firm, Oando Plc, had imported the product - about 33,000 metric tonnes of petrol - from the Amsterdan firm on the behalf of all major oil marketing firms in Lagos . The company in a swift reaction absolved itself from all blames and complications in the importation of the toxic fuel. The DPR said the product had found its way into the market, because besides the normal ‘flashpoint' check on petroleum products to verify the inflammability of the products, it lacked the necessary facilities to read the alcoholic content of products.
In a statement on Tuesday, Oando said 'the issue of high ethanol content 'was willfully concealed from us by the supplier. Oando is as much a victim of this unfortunate incident as many other Nigerians who have been adversely affected by this occurrence.
'We have accordingly commenced necessary legal action with a view to ensuring that the supplier of the product assumes full responsibility for damages caused to vehicles as a result of the use of the product."
However, Chukwueke said the management of Oando should move to pay compensation to all the affected victims while the supplying firm has been banned.
'The Holland company will not be allowed to supply any product in Nigeria again because it failed to declare the content to Oando," the DPR boss said.
He said the DRP has been inundated with several complaints from motorists in Lagos in the last couple of days of the destructive effects the petrol they bought at several filling stations of major marketers.
Following these complaints, he said, an investigation was carried out by Mobil Oil, one of the marketers who had received the product and it was discovered that rather than being a refined product from the refinery, it was a blended product sourced from a blending firm with about 20 per cent ethanol content which is against all international best practices and standards.
He said Oando will pay a penalty equal to the value of the imported product to the government as a deterrent to other importers to be more cautious in products importation.
He said the PPMC had been ordered to double their import volume to stem any crisis of fuel scarcity that might occur following the withdrawal of the toxic product from the country.