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Tag: Fuel Price

  • Fuel Price Hike: Industry players slam NNPCL over Port Harcourt Refinery delay

    Fuel Price Hike: Industry players slam NNPCL over Port Harcourt Refinery delay

    Some energy stakeholders have berated the Nigerian National Petroleum Company Ltd. (NNPCL) over delay in getting the Port Harcourt Refinery operational, to address recurrent fuel scarcity and price hike.

    The stakeholders spoke to NAN on Wednesday in Abuja against the backdrop of the unending fuel queues at filling stations across the country and the increase in price of petrol.

    Dr Orji Ogbonnaya Orji, the Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), faulted the NNPC Ltd. for failure to update the public on the exact status of the refinery.

    Recall that the NNPC Ltd. had postponed the much anticipated commencement of the Port Harcourt refinery for six times.

    This had raised concerns about local production of petroleum products, particularly Premium Motor Spirit (PMS), to meet the needs of Nigerians.

    Initially slated to commence operations in 2021, the refinery’s commencement had faced multiple delays, making Nigerians to raise concern on the actual position of the refinery..

    In December 2023, NNPC Ltd. claimed it had achieved the mechanical completion of rehabilitation work on Area 5 Plant of the refining company and slated its production resumption for Jan. 2024.

    The January date also turned out a mirage, with each postponement attributed to various technical, financial, and logistical challenges

    Recently, the NNPC Ltd. said its primary producing unit called Close Distillation Unit (CDU) was working, and would be getting off-spec production in days.

    Specifically, the oil company said the refinery would come on stream and its oil production would be fit for distribution after certification by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in September.

    Oriji underscored the need for consistent and clear updates on the refinery’s progress to foster trust and manage public expectations.

    He assured that NEITI would update Nigerians on the rehabilitation of the refinery and the cost in its ongoing 2022/2023 industry report to be published in September,

    According to him, the previous NEITI reports revealed that N200 billion has been expended between 2020 and 2021 on the turnaround maintenance of the refinery during the period.

    Orji recalled that he led a team which included officials of NEITI and the Civil Society Organisations (CSOs), as well as media representatives on assessment tour of the refinery in April.

    “For us in NEITI, we do not depend on speculation, rather we depend on data.

    “Our last report showed that over N200 billion was spent on the refinery and it hasn’t started working, so we decided to embark on the trip.

    “From our assessment, impressive work was going on in the refinery. There was an issue of test running of which the NNPC Ltd. described as a painstaking exercise,” he said .

    Dr Benjamin Tamaramiebi, the National President, Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) also expressed dissatisfaction with the NNPC Ltd. on its handling of the Port Harcourt refinery repairs.

    He decried the situation whereby Nigeria, for more than 25 years, had been importing fuel, adding, “its high time it stopped”.

    Tamaramiebi called for concerted efforts and commitments to ensure that the refinery become operational.

    He also underscored the need for the government to encourage and support the Dangote Refinery to start refining in order to stop importation of the product.

    Speaking in the same vein, Dr Sand Mba-Kalu, an Economic Expert underscored the need for clear, regular updates on the progress of the refinery’s rehabilitation to foster public trust.

    Mba-Kalu, the Executive Director, Africa International Trade and Commerce Research, said swift action was required to ensure timely completion of the rehabilitation of the refinery.

    “The government and NNPC Ltd. seem not to be telling Nigerians the truth about the refinery,

    “The shortage and high cost of petroleum products continue to burden households and businesses nationwide.

    “The delay has stifled potential economic growth, job creation, and industrial development that could have stemmed from a fully operational refinery,’’ he said.

    The expert said effective management of resources was crucial to guarantee the long-term viability and efficiency of the refinery.

    He added that immediate measures should be implemented to mitigate the high cost and scarcity of fuel to ease the burden on Nigerians.

    According to him, the development of additional refineries and a comprehensive strategy for the petroleum sector is essential for future stability and growth.

    A business man, Mr Akinola Oladapo lamented how the high price of fuel had stalled his business, adding that Nigerians were tired of the inconsistency of the NNPC Ltd. on the refinery’s commencement date.

    “it looks as if the management of the NNPC Ltd. is not sincere with Nigerians.

    “Nevertheless, they have set September for the refinery to start production. Let’s see if its the usual games they play or they are serious this time.

    “But one thing is clear; you can’t take Nigerians for a ride for too long,” he said.

    Located at Alesa Eleme, the Port Harcourt, complex operates two oil refineries, including an old plant commissioned in 1965 that can process 60,000 barrels per day, and the new plant commissioned in 1989, which has a capacity of 150,000 barrels per day.

  • Nigerians react as fuel sells for 1000 naira per liter

    Nigerians react as fuel sells for 1000 naira per liter

    The increase in the price of Premium Motor Spirit (PMS), commonly known as petrol by the Nigerian National Petroleum Company Limited (NNPCL) has stirred several reactions from Nigerians on social media.

    TheNewsGuru.com(TNG) had earlier reported that NNPC adjusted its pump prices to ₦904 per litre, with several filling stations across the country selling at ₦1,200 per litre.

    The surge in fuel prices has led to long queues at various NNPCL outlets across the country, where customers are scrambling to fill their tanks.

    The situation has also sparked concerns across social media, with many Nigerians expressing worry over the potential impact on transportation costs and the prices of goods and services, which are likely to rise.

    How Nigerians reacted:

    Egungun of Africa: “NNPC is now selling above 800 per liter; that means other stations will sell double that price. No matter which party you support, we will all learn politic the hard way. Ire o.”

    Communicator wrote: “Fuel for N1500/liter?? NNPC 800+ if you visit me and i on Gen.. Just know sey you go collect- whether yu be man or woman.”

    Isah Muhammad said, “Where are we heading to in this country? How do we survive now? It’s very unfortunate we are witnessing this.”

    Another Nigerian Ibrahim Saleh, said, “I can recall when I used to sell petrol (black market). It was then ₦95. One day during the late President Shehu Musa Yar’adua regime, we went to buy fuel and they halted the process.

    “We all thought it was going to be increased but they adjusted the litre to ₦65. It was something that I would never forget in my life. When things go up, they never come down in Nigeria and since then it has been like that.”

    iamkingdinero1 wrote: “The people that voted cause he’s their “ brother “ are buying for 86 naira per liter.”

    steeze.hq wrote: “Instead of standing up now see how we turn it to cruise. Mumu backwards cruise country. Sufferiinside cruise Mumu people!!”

    cattyfy22 wrote: “I just want to hear how his supporters will campaign for him in the next election. I chop abuse that time on facebook no be small. When I was encouraging them to look beyond tribe.”

    adeshina1170 wrote: “Thank God say I rugged buy and installed inverter and solar panels then o, wetin concern me with gen.”

    cyril_unusual wrote: “Tbh …. I heard the people that voted their brother are buying for ₦100/liter..”

  • BREAKING: Fuel prices to increase from N568 to N617 per litre

    BREAKING: Fuel prices to increase from N568 to N617 per litre

    The Nigerian National Petroleum Corporation Limited (NNPC) has revealed that its fuel pump price will rise from 568 to 617 per litre tomorrow.

    In June, the NNPC announced an increase in the price of fuel per litre due to the removal of fuel subsidy, which made the price shift from its previous N189 per litre, to N539-N600 per litre across different states.

    TheNewsGuru.com learned from an NNPC fuel station on Wednesday that there will be a sudden increase in the petrol pump price from the former 568 to 617 per litre in Lagos.

    The change occurs a few months after the downstream petroleum business was completely deregulated, that is, the process of removing governmental restrictions from a market, enabling market forces to set product pricing.

    It is said that as fuel prices are no longer fixed, they will continue to change based on the market forces and the changes in Dollar in the foreign exchange market.

    Naira dropped further to the dollar, exchanged at N782.38/$1 on Wednesday at the official market. But, at the parallel market dollar is enchanted at 910/$1.

  • NMDPRA cautions marketers against increasing pump price of petrol

    NMDPRA cautions marketers against increasing pump price of petrol

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has cautioned petroleum marketers against increasing price of the product beyond the approved figure.

    The Chief Executive Officer (CEO) of the Authority, Engr Farouk Ahmed, who disclosed this in Abuja yesterday, explained that some members of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are selling petrol above the official price.

    He said: “It has come to the notice of the Authority that Premium Motor Spirit (PMS) popularly known as Petrol is being sold at loading depots of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) members above the official price which is caused by the erroneous insinuation of imminent increase in the price of the product.”

    He assured that there is adequate supply saying, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA) is assuring the general public that the price of Petrol has not been changed and that the Federal Government has no intention of upward adjustment of the Price at the moment.”

    The Authority urged the general public to note that the country has adequate stock of Petroleum and the NNPC has further assured of sufficient supply of Product.

    The CEO therefore cautioned marketers against hoarding and engaging in unwholesome practices that are inimical to the smooth supply of Petroleum.

    Engr. Ahmed has directed all operational offices of the Authority across the nation to ensure that all loading depots and retail outlets are dispensing petroleum at only the approved price.

    He also urged motorists to desist from panic buying and report any erring marketer to the nearest office of the Authority.

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority.

  • PIA implementation won’t raise fuel price –PPPRA

    The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday said the implementation of Petroleum Industry Act (PIA) may not necessarily lead to an increase in the pump price of petrol in the country.

    The Executive Secretary of the Agency, Mr Abdulkadir Saidu, disclosed this in a statement in Abuja on Sunday.

    “There is no gainsaying it that the PIA signals the implementation of full deregulation of the downstream sector. However, it is noteworthy that the PIA does not automatically translate to immediate increase in the price of PMS.

    “The current price will remain until ongoing negotiation with Organised Labour, which will develop a feasible framework that minimises the impact of a Market-Based pricing policy on the masses, is concluded,’’ he said.

    He further congratulated President Muhammadu Buhari and Minister of State for Petroleum Resources, Chief Timipre Sylva for making the historic Petroleum Industry Act (PIA) a reality.

    “The PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

    “Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,’’ he said .

    He added that the implementation of the PIA would foster greater investment in the sector.

    “It will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains,” Saidu added.

    He also commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu said that the establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly delineates the roles of industry operators and regulators.

    The implementation committee of the PIA is to be chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva.

  • JUST IN: There will be no fuel price increase in July – NNPC

    JUST IN: There will be no fuel price increase in July – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has said there will be no increase in the official price of Premium Motor Spirit (PMS) otherwise known as petrol in July.

    Group Managing Director (GMD) of NNPC, Malam Mele Kyari who said this in an interview on Channels Television on Tuesday June 29, said the price of petrol will remain constant pending the conclusion of negotiation with organized labour.

    Kyari who disclosed that the pump price of petrol should be N256 per litre based on the current crude oil price, revealed that the federal government through the NNPC had decided to continue paying the differential until an appropriate price is agreed upon by the government and Labour.

    He said President Muhammadu Buhari had told the corporation to do everything legally possible not to make petrol price out of reach of Nigerians, especially at this moment.

    The NNPC GMD added; “What this means however is that we are taking out cash that could have been used for other things to pay under-recovery.”

    Kyari who also debunked claims of the corporation not remitting any money to the federation account because of under-recovery payment, further confirmed that the corporation is buying 20% equity in Dangote refinery for energy and physical security of the country.

    The NNPC GMD said the refinery which will start production in 2021, shouldn’t be left in the hands of Dangote alone to ensure stability of the market.

    He said; “There is no way you can allow a business of this magnitude to be left with just a private sector player.”

    Kyari disclosed that money for rehabilitation of Warri and Kaduna refineries which would be awarded in July, will be provided by banks.

  • Fuel price N380; Next level catastrophe (1) – Dele Sobowale

    Fuel price N380; Next level catastrophe (1) – Dele Sobowale

    Dele Sobowale

    “To know that which before us lies in daily life is the prime wisdom…”

    John Milton, 1608-1674, VANGUARD BOOK OF QUOTATIONS, p 275.

    Africans in general, and Nigerians, in particular, are slow learners. That is why the GIANT of Africa will never go to the moon or Mars – long after Fiji Island (population 200,000) had got there. From the information at my disposal, those citizens of the island state, at least, don’t deceive themselves. Nigerians have never been honest with themselves. We are in serious danger now, not just because Buhari is the President (although that is a contributory factor), but because we too readily lie to ourselves. Worse still, we pretend to believe what we know is untrue and we want others to believe it too. When the N380/litre fuel is introduced, we would have reached the Next Level of national catastrophe. We are responsible for what will unfold from the minute the new fuel price is announced. We elected the Buhari government which will make our lives miserable to the end of its days.

    FORECASTING ECONOMIC OUTCOMES IS AN ART AND SCIENCE

    “Every government is run by liars; and nothing they say should be believed.”

    I. F. Stone, 1907-1989

    Personally, I don’t derive much pleasure anymore from being right most of the time. Virtually every article I have written in the last ten years on the BUSINESS/ECONOMY pages of newspapers had either involved forecasting the future economic outcome in one aspect of Nigerian life; or telling Nigerians “I told you so”. Governments will always lie to the people. That is why the media exists in society. It is our sacred duty to let the people have the facts – without fear or favour. It is an obligation we don’t always discharge as we should. We evade truths that hurt some individuals or in order to be popular. Yet, column writing is a trust. The columnist should not be engaging in popularity contest, but, in the search for and rendition of truth as close as he can get to it. What follows will not make you happy; but, it will be the truth.

    “Allow an untenable economic situation to go on for too long; and, suddenly, there are no good options left.”

    Arthur Burns, , former Chairman of the US Federal Reserve Bank.

    For too long, any economist, worth his salt, had known that fuel subsidy was an economic mistake at first; it has turned to lunacy at last. Governments, from Babangida to Buhari now, had grappled with the attempt to end the intractable issue of fuel subsidy, but, every one of them had lacked the courage to an end it. They have all caved in when the political fall-outs prove too irresistible. Yet, fuel subsidy, where and when it exists, amounts to government encouraging the people to live beyond their means. And, when such handout is financed by borrowing, it ends up as mortgaging the future for the benefit of the present generation. We are consuming now and passing the bill to our children and grand-children to pay. This is most unkind of our generation of adults. But, all things come to an end eventually. Fuel subsidy must end now.

    “NGF mulls N380/litre fuel price.” News Report, May 20, 2021.

    The bad news which was released by Governor El-Rufai of Kaduna state needs to be quoted as delivered. According to him, “The committee recommends PMS pump price increment from the current N162 per litre to N408.5 per litre (negotiations on with organised labour unions. N380 per litre settlement with organised labour.”

    Why El-Rufai accepted to be the spokesman for the Governors, given the monumental problems he faces in Kaduna State, is a mystery. I strongly believe the Nigerian Governors’ Forum should have picked another spokesman to deliver this explosive message.

    That said; let me interpret the message delivered in “governmentese” – an alien language to most Nigerians. It is full of riddles. First, fuel subsidy removal is imminent – either totally or partially; either once and for all time or still trending. Second, the Governors, after demonstrating lack of courage and foresight, have been slugged by reality to acknowledge the fact that they cannot expect higher monthly revenue allocations from the Federal unless fuel subsidy is totally or partially removed. Third, the FG, which will eventually have to announce the bad news to Nigerians, has delegated its responsibilities for now. But, the FG cannot chicken out for ever. It must address the nation because of the consequences that will follow. And, they will be severe on Nigerians everywhere in this country. Prayers cannot help us.

    “Whatever a man prays for, he prays for a miracle. Every prayer reduces itself to this; Great God, grant that twice two be not four.” Ivan Turgenev, 1818-1883.

    I have received several calls from our readers wanting to know if indeed there is a subsidy to be removed; whether N380/litre fuel price should be acceptable and what would be the consequences of that quantum increase in fuel price. Too often, the callers don’t voice their anxiety, namely, how to avoid the inevitable hyper-inflation. Let me address the last issue first.

    Increasing fuel price from N162/litre to N380/litre, or 200 per cent, amounts to unofficial devaluation of the Naira. Prices of goods and services will escalate by at least 50 to 100 per cent. Aggregate inflation will rise above 30 per cent for the rest of the year. Most of us might not like to hear it, but, it needs to be said clearly. There is subsidy to remove. The landing cost of fuel exceeds the pump price by a wide margin. Unless we close it, the FG and states will become ungovernable. None will be able to pay the Minimum Wage to which they were foolishly committed in 2019.

    FORGET ABOUT REFINERIES

    “n

    Each time fuel price increase returns to the front of the national agenda, Nigerians ask the same foolish question. Don’t ask me about our refineries. I am sick and tired of repeating the same thing about the scraps we call refineries. What is quoted above is what we were told in May this year. If you believe that, you will certainly believe anything. Three obvious reasons should inform your scepticism about that announcement. Buhari has only 24 months to go. No government has delivered any project on time. They would have exhausted the $1 billion before they go; the successor will have no funds to complete the job.

    To be continued….

    “Politicians are their own grave diggers.” Will Rogers, 1879-1935, VBQ p 191

    Governors are their own worst enemy; and sometimes ours too. The problem bringing Kaduna to stand still now was foreseen and governments were warned on these pages. Furthermore, another warning was issued as soon as Buhari announced the Minimum Wage. Finally, a confidential letter was sent to two South West governors advising that no Governor should act alone on Minimum Wage. El-Rufai is in big trouble because they don’t listen to other people. All the talk about “all hands on deck” by Governors is hogwash. Most of them will soon suffer El-Rufai’s fate…..

    To be continued

  • No Increase in Fuel Price in February – NNPC

    No Increase in Fuel Price in February – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has ruled out any increment in the ex-depot price of Premium Motor Spirit (petrol) in February, 2021.

    This was disclosed in a press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru.

    The statement explained that the decision was to allow ongoing engagements with organized labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship, to be concluded.

    NNPC urged petroleum products marketers not to engage in hoarding of Premium Motor Spirit (petrol) in order not to create artificial scarcity and unnecessary hardship for Nigerians while giving assurance that it has enough stock of petrol to keep the nation well supplied for about 40 days. It further called on relevant regulatory authorities to step up monitoring of the activities of marketers with a view to sanctioning those involved in products hoarding or arbitrary increase of pump price.

    It would be recalled that the nation’s downstream sector was deregulated in March 2020 with the Minister of State for Petroleum Resources, Chief Timipre Sylva, stating that the prices of petroleum products would be determined my prevailing market forces.

  • BREAKING: FG drops fuel price to N162.44 per litre

    BREAKING: FG drops fuel price to N162.44 per litre

    The Federal Government has announced a reduction in the pump price of premium motor spirit, otherwise known as petrol, from N168 to N162.44 per litre with effect from December 14.

    The Minister of Labour and Employment, Dr Chris Ngige, disclosed this at the end of a meeting with labour leaders which began around 9 pm on Monday and ended at 1:30 am on Tuesday.

    The product presently dispenses at N168, following the decision of the Petroleum Products Marketing Company to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November.

    The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.

    The minister said a technical committee has been set up to ensure price stability in the industry.

    Ngige stated that the committee, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry.

    He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major importer and marketers of petroleum products and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today.”

  • NLC tackles FG over fuel price hike, demands immediate reversal

    NLC tackles FG over fuel price hike, demands immediate reversal

    The Nigeria Labour Congress (NLC) has demanded the immediate reversal of the pump price of Premium Motor Spirit (PMS), also known as petrol.

    In a statement on Monday by the NLC President, Ayuba Wabba, the union took a swipe at the government and condemned the increase in the price of the product.

    It stated that the recent hike in petrol pump price has worsened the level of pain and anguish in the country.

    According to the NLC, it is worrisome to make Nigerians continue to suffer for the failures of successive governments to properly manage the nation’s refineries.

    It added that the development has questioned the explanations made by the government on the payment of subsidy.

    The union insisted that the nation would not have been in its present position if the government had been alive to its responsibilities.

    It warned that Nigerians have a limit to tolerate the continued increase in the price of refined petroleum products and other essential goods and services.

    On the way forward, the NLC asked the government to fix the nation’s refineries, stressing that several options were available to tackle the trend of high prices of refined petroleum products.

    Among other recommendations, it asked the government to declare a state of emergency in the downstream petroleum sector and seal refining deals with refineries closer to Nigeria.

    A file photo of an attendant filling the fuel tank of a car.

    The union was, however, silent on what action it would take if the increased price was not reversed.

    The Federal Government had announced a new pump price band for petroleum products, raising the ex-depot price of petrol to N155.17, making marketers sell between N165 and N173 per litre to consumers.