PETROAN: Nationwide Meter Checks Follow NMDPRA Under-Dispensing Warning

• PETROAN has directed all its members nationwide to inspect their fuel dispensing meters following a warning from the NMDPRA.
• The NMDPRA cautioned against alleged under-dispensing of petroleum products and threatened sanctions, including licence revocation, for non-compliant outlets.
• PETROAN's National Executive Council held an emergency meeting to address the regulator's concerns about fuel pump accuracy.
• The association emphasizes its commitment to accurate dispensing and advises motorists to monitor meters and request receipts.
• PETROAN collaborates with the Weights and Measures Division and the NMDPRA to ensure meter functionality and accuracy.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified its oversight, issuing a clear warning to filling station operators regarding the under-dispensing of petroleum products.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has issued a directive to its members across the country, urging them to conduct immediate inspections of their fuel dispensing meters. This significant instruction follows a stern warning from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding widespread allegations of petroleum product under-dispensing at retail outlets.

Billy Gillis-Harry, the National President of PETROAN, publicly announced this development on Wednesday during an appearance on Channels Television’s The Morning Brief programme. He revealed that PETROAN's National Executive Council convened an emergency meeting on Tuesday, which extended late into the evening, specifically to address the concerns raised by the regulator about the accuracy of fuel dispensing equipment. Following this critical meeting, a nationwide message was circulated, instructing members to promptly verify their equipment's calibration.

This proactive measure, encompassing PETROAN nationwide meter checks following the NMDPRA warning, underscores the industry's commitment to addressing regulatory concerns. Gillis-Harry noted that several members had already initiated these checks, acknowledging that the continuous operation of dispensing equipment can degrade its performance over time. Such wear and tear can lead to inaccuracies, resulting in either customers receiving less fuel than paid for or, conversely, outlets dispensing more than the transaction indicates.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified its oversight, issuing a clear warning to filling station operators regarding the under-dispensing of petroleum products. The regulator has indicated that any retail outlets found to be short-changing consumers will face stringent penalties, including the potential withdrawal of their operating licences. This threat of licence revocation for fuel stations by NMDPRA highlights the gravity with which the authority views non-compliance.

This regulatory stance emphasizes the critical importance of fuel pump accuracy in Nigeria's petroleum retail sector. PETROAN's leadership has acknowledged the seriousness of the NMDPRA fuel under-dispensing sanctions and has promptly engaged its members to identify and rectify any operational faults. The association's president himself recounted a personal experience where a faulty meter in his own retail business led to financial losses due to over-dispensing, illustrating the dual risk of inaccurate equipment.

In response to the heightened scrutiny, PETROAN has reaffirmed its members' dedication to ensuring that customers receive the exact quantity of fuel they pay for, emphasizing a 'one litre for one litre' commitment. To foster transparency and consumer confidence, the association advises motorists to actively monitor the dispensing meter during fuel purchases, request receipts for every transaction, and familiarize themselves with their vehicle's fuel tank capacity to cross-reference with the dispensed volume.

Furthermore, PETROAN actively educates its staff to draw customers' attention to the meter readings both during and after dispensing, promoting an environment of open verification. This focus on Nigerian petroleum retail compliance is supported by ongoing collaborations with key regulatory bodies. PETROAN consistently works with the Weights and Measures Division of the Ministry of Industry, Trade and Investment, alongside the NMDPRA, to ensure the functionality, accuracy, and up-to-date calibration of all dispensing meters across its network.

The immediate and serious response from PETROAN to the NMDPRA's warning signals a critical moment for upholding standards within Nigeria's petroleum retail sector. The association's swift action to mandate nationwide meter checks reflects a recognition of the potential damage to consumer trust and the severe consequences of regulatory non-compliance.

This concerted effort by industry stakeholders, in collaboration with government agencies, is vital for maintaining integrity and fairness in the distribution of petroleum products. It underscores the continuous need for vigilance and adherence to established accuracy benchmarks, ensuring a level playing field for operators and fair dealings for consumers.

Lawyers advising petroleum retail outlets should note the increased regulatory scrutiny from NMDPRA regarding fuel dispensing accuracy, necessitating immediate internal meter checks to avoid potential sanctions, including licence revocation. Compliance officers must ensure their operations meet NMDPRA and Weights and Measures standards to mitigate legal and operational risks.

Source: Original reporting via Punch Newspaper