Business
Boris Johnson To Consider Using Army To Supply Petrol Stations
Boris Johnson to consider using army to supply petrol stations
Hundreds of soldiers could be scrambled to deliver fuel to petrol stations running dry across the country due to panic buying and a shortage of drivers under an emergency plan expected to be considered by Boris Johnson on Monday.
The prime minister will gather senior members of the cabinet to scrutinise “Operation Escalin” after BP admitted that a third of its petrol stations had run out of the main two grades of fuel, while the Petrol Retailers Association (PRA), which represents almost 5,500 independent outlets, said 50% to 90% of its members had reported running out. It predicted that the rest would soon follow.
The developments led to growing fears that the UK could be heading into a second “winter of discontent” and warnings that shelves could be emptier than usual in the run-up to Christmas.
In a bid to prevent the crisis from deepening further, ministers including the business secretary Kwasi Kwarteng, transport secretary Grant Shapps and home secretary Priti Patel gathered for a midday meeting on Sunday to discuss options – including Operation Escalin.
Conceived years ago during the planning for a no-deal Brexit, it would mean hundreds of soldiers being drafted in to drive a reserve fleet of 80 tankers. It is understood that it would take up to three weeks to fully implement, because some of those mobilised may already be on other deployments and others could be reservists. Escalin was touted as an option last week, but government sources downplayed the chance of its activation.
Late on Sunday night, Kwarteng also announced that fuel firms would be temporarily excluded from the Competition Act for the purposes of sharing information and optimising supply. He admitted there had been “some issues with supply chains”, but insisted there was still “plenty of fuel at refineries and terminals”. Officials said the move would make it easier for firms to “share information, so that they can more easily prioritise the delivery of fuel to the parts of the country and strategic locations that are most in need”.
The Escalin and other proposals will be put to Johnson on Monday afternoon, in a meeting where ministers are also expected to discuss more immediate solutions to try to influence people’s behaviour and put an end to the current levels of panic buying.
Ministers are exasperated because they think that the true magnitude of fuel shortages would have been tiny if the public were acting normally, and the HGV driver shortage would have only had a marginal effect, but media reports have prompted queues outside forecourts across the country. The PRA said demand at one service station had risen by 500% on Saturday compared with last week.
A source suggested that a high level of shortages will last at least another five days – and could go on even longer if people’s behaviour does not change. They called the situation a “catch-22”, because by making any interventions, the government could end up exacerbating the problem: “The more we seem to react to this, the more we end up driving it. But if we don’t react, it just carries on. We’re almost generating our own crisis.”
The shortage has also had major knock-on effects that ministers feel need urgent remedying, with teachers and doctors unable to fill up their tank to drive to school or hospital. The blunt communications strategy of insisting there is no lack of fuel is likely to be shifted to urging people to be mindful of others when buying petrol.
Attention is also turning to Christmas. Kate Martin of the Traditional Farm-fresh Turkey Association (TFTA) said the UK could face a “national shortage” of turkeys in the run-up to December.
The TFTA, which represents producers of high-end free-range turkeys, said it was “100% caused by a labour shortage” due to post-Brexit immigration rules, meaning “a whole host” of the workforce is “no longer available for us to use on a seasonal basis”.
The British Retail Consortium also said moves to relax immigration rules to fix supply chain issues was “too little, too late” for Christmas.
Andrew Opie, the group’s director of food and sustainability policy, predicted to the BBC that during the festive season, shoppers would see “less choice, less availability, possibly shorter shelf life as well, which is really disappointing because this could have been averted”.
Jim McMahon, Labour’s shadow transport secretary, claimed the government’s solution of streamlining HGV tests and granting about 5,000 extra visas for drivers and another 5,000 for poultry workers was “not good enough”. He said if ministers did not do more, “shelves will continue to be bare, with medicines not delivered and Christmas ruined for the nation”.
A Tory MP, David Morris, spelled out the scale of the challenge facing the government. He said: “I can remember the winter of discontent and I remember what was building up to it and this to me feels very, very reminiscent.”
Morris told the Guardian: “We’re not anywhere near that situation yet, but there are perfect storm analogies coming along that could put us into that territory.” He stressed it was a “historic problem” that ministers were trying to address, but admitted the pressure Covid was likely to put on the NHS this winter and the looming end of the universal credit uplift would make it a challenging winter for many.
Shapps on Sunday urged people to “be sensible” and blamed “one of the road haulage associations” for what he called a manufactured crisis, suggesting on Sky News that the group had leaked details from a meeting last week about driver shortages at fuel firms. However, the Road Haulage Association branded it a “disgraceful attack” concocted to “divert attention away” from the government’s handling of the issue.
Business
FCCPC warns Ikeja, Eko DisCos: Breach of Meter replacement rules will be met with force
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over recent rumours suggesting that Ikeja and Eko Electricity Distribution Companies (IKEDC and EKEDC) might disregard the directive to halt the planned replacement of Unistar meters.
The FCCPC affirmed that the directive remained fully in effect, and that any attempt by these DisCos to violate it would result in severe consequences.
The FCCPC, in a statement issued by its Director, Corporate Affairs, Ondaje Ijagwu clarified that the approval of new meter prices by the Nigerian Electricity Regulatory Commission (NERC) is unrelated to the proposed replacement of Unistar meters by IKEDC and EKEDC.
It said this planned replacement was invalidated by both the FCCPC and NERC and that there is no evidence suggesting that the DisCos had violated its directive.
“It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).
“The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subjected to estimated billing due to delayed installations,” it said.
According to FCCPC, its stance is unequivocal, saying any non-compliance by Ikeja and Eko DisCos would not be tolerated as any breach of this directive would incur stringent penalties in accordance with current consumer protection laws.
The agency said consumers who encounter any attempts by Ikeja or Eko DisCos to flout this directive were encouraged to report the matter to the FCCPC through its dedicated line for electricity issues: 08119877785.
The body stated that it remained steadfast in its commitment to protecting Nigerian consumers from unfair practices by service providers.
Business
Gov. Adeleke presents budget proposal of N390bn to State House of Assembly
Osun State Governor, Ademola Adeleke has presented the sum of N390 billion as the 2025 budget proposal to the Osun State House of Assembly.
Governor Adeleke presented the budget proposal to the Assembly on Wednesday.
The governor said the proposal marked a significant increase in fiscal spending compared to previous years.
He said it reflected his administration’s commitment towards accelerating socio-economic development in the state, explaining that “the budget is designed to enhance infrastructure, improve social services, and stimulate economic growth.”
DAILY POST gathered that the proposed budget allocates N144.231 billion for capital expenditure, which includes funds intended for infrastructure development, healthcare facilities, education improvements, and other projects meant to boost the state’s physical and social infrastructure.
“This allocation underscores the government’s commitment to tangible improvements in Osun State’s public services and infrastructure.
“The capital expenditure budget is expected to fund a wide range of projects, from road construction and repairs to the enhancement of healthcare services and educational facilities.”
On the other hand, the recurrent expenditure allocated to the budget amounts to N245.797 billion.
This part of the budget covers the state’s operational costs, including salaries and other government administrative expenses.
Governor Adeleke’s 2025 budget proposal also follows recent fiscal trends, including the approval of a N273 billion budget for 2024, aimed at setting a foundation for sustainable development.
The governor expressed confidence that the proposed budget will support ongoing projects and launch new initiatives aimed at transforming Osun State into a model of economic growth and social prosperity.
Governor Adeleke who urged the Assembly members to support the budget, stated that the proposed spending aligned with his administration’s vision of fostering inclusive growth and sustainable development.
Business
IPMAN announces possible fuel price reduction
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed its intentions to reduce the price of Premium Motor Spirit (Petrol) by ₦50 for every litre sold to consumers.
The IPMAN’s National President, Abubakar Maigandi, made this known during an interview with Channels Television on Tuesday, where he disclosed that Dangote Refinery has set a price template of ₦940 per litre for depot purchases and ₦990 per litre for truck purchases for IPMAN members.
The IPMAN boss further notes that the move is expected to bring down petrol prices across the country as their members selling petrol between ₦1,150 and ₦1,200 per litre will reduce the price by ₦50, depending on the location.
Maigandi added that the price reduction will provide relief for Nigerian consumers, who have faced fluctuating fuel prices.
He said, “Presently, we have been given two different arrangements on how to buy fuel from the refinery.
“There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.
“For instance, the current price in Maiduguri now is N1,200 per litre. So with these current changes, it may likely reduce to ₦1,150, which is a reduction of ₦50. So that’s ₦1,150. It may even be below that.”
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