TheNewsGuru

Tag: Fuel

  • Massive fuel scarcity hits Abuja, black market operators now sell 1 litre for N500

    Massive fuel scarcity hits Abuja, black market operators now sell 1 litre for N500

    By Emman Ovuakporie

    Barely 24 hours after the Federal Government announced that by June fuel subsidy will be removed from all petroleum products, massive fuel scarcity has hit Abuja, the Federal Capital Territory.

    TheNewsGuru.com, TNG reports that this development has led to massive fuel queues along Abuja major roads as black market operators sell a litre of fuel for N500.

    Along Abuja-Kaduna-Kubwa express road a ten litre jerry can of fuel sells for N5k while a 25 litre can goes N12.500.

    Except for Gegu oil filling station that is selling fuel other private operators along the express seal their gates while the three NNPC outlets are selling as vehicles litter the service lane.

  • FG to end fuel, electricity subsidies by mid-2021

    FG to end fuel, electricity subsidies by mid-2021

    Plans by the federal government of Nigeria to end both electricity and fuel subsidies by mid-2021 have been revealed.

    The Nigeria Natural Resource Charter (NNRC) revealed the plans on Sunday quoting an International Monetary Fund (IMF) report.

    According to NNRC, the report followed the conclusion of IMF’s Article IV consultation with Nigeria.

    According to the IMF in the report, FG had promised to see to the end of tariff shortfalls that led to their re-emergence.

    “They expressed strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021.

    “They believe that lifeline tariffs and other relief measures are adequate to protect poorer households from increases in electricity prices and highlighted the benefits from higher and more predictable availability,” the report reads.

    Although the Nigerian government had in March 2020 removed petrol subsidy, it however resurfaced following rise in price of crude oil at the international market.

    On September 8, 2020, the Federal Government said its removal of petrol subsidy and the increase in electricity tariff were in agreement with reforms requested by the IMF and the World Bank as it seeks financial assistance of $3.4bn from IMF.

    The President, World Bank, David Malpass had met with the Minister of Finance, Budget and National Planning and the Governor of Mr Godwin Emefiele, on April 8, where the need to eradicate energy subsidies among other issues were discussed.

    “The recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not re-emerge,” the Federal Government told the IMF in the letter of intent dated April 21, 2020.

  • DPR begins sealing petrol filling stations for selling above official pump price

    DPR begins sealing petrol filling stations for selling above official pump price

    The Department of Petroleum Resources (DPR) has sealed two filling stations in Gusau for violating its rules and regulations.

    The Operations Controller in charge of Gusau DPR Office, Alhaji Yusuf Shehu, told newsmen of the sealing after a routine surveillance on filling stations in Gusau on Monday.

    Shehu said that one of the two filling stations was sealed for selling petrol in jerry cans, while the other was sealed for selling the product at N185, which is above official pump price.

    “You know few days ago there was rumour that some stations were selling above the regulated price in the state.

    “You know DPR is the regulatory agency in oil and gas industry; our outing today is to ensure that the product is available, not diverted, to ascertain the quality of the product, and check price, as government has said no increase,” the controller said.

    He said that the operation revealed 80 per cent compliance, with most of the filling stations selling between the range of N162 and N165.

    “There was also compliance in safety and quality of the product”, the controller said.

    Shehu called on fuel marketers to desist from hoarding, under dispensing and other irregularities.

    He appealed to the public to avoid panic buying, saying that the department would make sure that the product was available to the people of the state.

    The controller called on them to report any station found selling above the official price range.

    Also, the DPR on Monday sealed four petrol stations in Katsina metropolis for selling product above government approved price.

    Engr. Muhammad Abdulrahaman, Controller in charge of Katsina Field Office of DPR, disclosed this in an interview with the NAN in Katsina.

    Abdulrahaman stated that the stations were sealed following routine surveillance to the stations.

    “We discover that the stations were selling petrol between N170 and N18O per litre as against the government rate of N162 to N165 per litre, therefore, we sealed off the stations.

    “We received intelligence report on the way and manner these stations sell their products to members of the public at exorbitant rates,” he said.

    Abdurahman said that some of the petrol stations were hoarding their products only to sell to ‘black’ marketers at night.

    He also dismissed as untrue insinuations over the increment of pump price of Premium Motor Spirit (PMS).

    “Let me dispel this rumours by some members of the public that government has increased the price of PMS (Petrol), this statement is false.”

    The Controller said that the DPR in Katsina state was committed to ensuring that all filling stations dispensed their products in line with government approved pump price.

    He pointed out that the sealed stations would be fined, adding that failure to pay the fines would lead to the revocation of their licenses to serve as deterrent to others.

    In Enugu, the DPR Field Office in the State sealed eight petrol stations for dispensing Premium Motor Spirit (PMS) above the approved government pump price.

    The Head, Operations, Mr Afam Azuike disclosed this on Monday.

    Azuike, however, said that three out of the affected petrol stations were later unsealed as they reverted to the government approved price of the product.

    He said that the sealing of the defaulting petrol stations followed a public outcry over the weekend that petroleum marketers had arbitrarily increased the pump price of PMS.

    He said that the field office on Monday embarked on an aggressive surveillance in Enugu metropolis during which they inspected 29 petrol stations.

    “We discovered that the major marketers sold between N162 and N175. They complained about the cost of the product at the depot as well as the freight charges from Lagos to Enugu.

    “We are aware that government has not increased the price band of PMS which is on partial deregulation.

    “The current price band is cost reflective, taking into cognizance the international cost of crude oil and cost of importation of refined products,” he said.

    Azuike said that the five that refused to revert would remain sealed and be sanctioned in line with the default regulations.

    The head of operations said that they discovered that several petrol stations were under lock and key, adding that “we do not know whether they have products or not but the surveillance will continue.

    “We noticed that there was panic buying of PMS in Enugu over the weekend but after this surveillance there will be free flow of products in the state.

    “We want residents of the state to know that there is no fuel scarcity in the state,” he said.

    Azuike appealed to commuters not to play into the hands of greedy petroleum marketers and to report anyone selling above the approved pump price.

    “No one should be compelled to buy PMS above the approved pump price. Our office is always open and if you report defaulters we will swing into action,” he said.

    Azuike said that the surveillance would continue in other states in the field.

    PMS scarcity led to a rise in the pump price of PMS in the state in the last four days as some petroleum marketers sold as high as N210 per litre.

  • Fuel price hike: PPPRA backtracks

    Fuel price hike: PPPRA backtracks

    The Petroleum Products Pricing Regulation Agency (PPPRA) says the March guiding prices posted on its website does not translate to increase in the pump price of Premium Motor Spirit (PMS) also known as petrol.

    The PPPRA Executive Secretary, Abdulkadir Saidu disclosed this in a statement in Abuja, on Friday.

    “The attention of the Petroleum Products Pricing Regulatory Agency (PPPRA) has been drawn to speculations about the increased pump price of PMS.

    “The PPPRA by this release wishes to state clearly that the guiding prices posted on our website was only indicative of current market trends and do not translate to any increase in pump price of PMS.

    “However, publications by the media to this effect have been misconstrued and thus misleading,’’ he said.

    He said that the introduction of the market-based pricing regime for PMS Regulation 2020 was gazetted by the Federal Government.

    According to him, based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.

    “One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of guiding price to reflect current market fundamentals.

    “The PPPRA in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, monitors market trends on a daily basis to determine Guiding Prices,’’ he said.

    Saidu said that the agency was not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS.

    “PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy.

    “While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase.

    “The current PMS price is being maintained while consultations are being concluded.

    “Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,’’ he added.

    Saidu assured the public of adequate products supply as the average PMS Day-Sufficiency as of March 11, 2021 was over 35 days.

    “The PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public,’’ he said.

  • No hike in petrol price for now – Marketers

    No hike in petrol price for now – Marketers

    Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) say there is no hike in the pump price of Premium Motor Spirit (PMS) or petrol.

    The groups confirmed the development in separate interviews on Friday in Lagos while reacting to reports that the price of PMS has been increased to N212.61 per litre.

    Currently petrol sells at N162 and N165 per litre at most filling stations across the country.

    Mr Clement Isong, the Executive Secretary, MOMAN, told NAN that the association had received communication from the Nigerian National Petroleum Corporation (NNPC) that there should be no price increment for PMS.

    Isong said, “NNPC has told us that they will not increase prices in March. If you recall, they have made a statement on that earlier and have reconfirmed to us that there is no increment.

    “They have also put it out on their social media handles.’’

    According to him, queue noticed at filling stations in some states of the country in recent weeks is due to speculation that there will be price increase.

    “What NNPC did was to take out the speculation by giving assurance that price will not go up in March and that killed the queue and demand went down.

    “What they have done again this morning is to take out the speculation out of the market. They always have enough products,’’ he said.

    Isong added that MOMAN had advised its members to continue retailing with the old price regime.

    Similarly, Mr Chinedu Okoronkwo, President, IPMAN said marketers had received communication from NNPC that there would not be any price increment until government and organised labour concluded their deliberations.

    “There is no increment. Government is still talking with labour. What we are even concerned about is total deregulation of the market.

    “There are other alternative sources of energy to PMS and we cannot continue to focus all our attention only on that product.

  • We are not aware of petrol price hike – IPMAN

    We are not aware of petrol price hike – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it has not received any official communication on Fuel price hike.

    The Chairman of the association in Kano State, Alhaji Bashir DanMalam stated this while briefing newsmen on Friday in Kano over the report going round that the pump price was increased to over N212 per litre.

    The chairman directed all his members to continue selling the litre at the old price adding that it had not received any official communication from the federal government.

    He told newsmen that whenever there was fuel increment, critical stakeholders would inform the IPMAN leadership, and urged the general public to disregard the ongoing rumour.

    Danmalam said, “the leadership of IPMAN has consulted critical stakeholders in the petroleum sector and informed them that there is no such decision of fuel increment for now.” he said.

    The chairman said the Nigerian National Petroleum Corporation (NNPC) had enough fuel for distribution across the country and urged the public to avoid panic buying.

  • JUST IN: FG requests one week to review petrol price

    JUST IN: FG requests one week to review petrol price

    The Federal Government has requested for a week break from discussion with organised labour to consult on the new petrol price increase.

    Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari made the request at Thursday’s meeting with the leadership of organised labour at the Banquet Hall of the Presidential Villa, Abuja, on Thursday.

    Kyari told the meeting that the cooperation couldn’t unilaterally announce a reversal of the new price without consultation.

    It was agreed by both the labour and government team led by the Secretary to the Government of the Federation, SGF, Boss Mustapha that the meeting should be adjourned and should resume on December 7.

    Labour has asked the government to reverse the recent fuel price increase, saying the increase negates the agreement reached in September.

    Petrol price has increased by about four times in 2020. It had risen from N121.50–N123.50 per litre in June and N140.80-N143.80 in July and N148-N150 in August.

    The product presently sells between N165 and N168 per litre after the Petroleum Products Marketing Company, a subsidiary of the Federal Government-owned NNPC, increased the ex-depot price of petrol from N147.67 per litre to N155.17 per litre for this month.

    Minister of Labour and Employment, Chris Ngige at the end of the meeting which lasted for more than three hours, told reporters that the federal government team will relay the position of labour to President Muhammadu Buhari who is the Minister of Petroleum and also to the Economic Management team because funds are involved.

    Ngige said: “By Monday, December 7, we will come back, because the message from the organised labour is clear. They want a reversal of the pump price to what it was. So, the government side will take it back to our principals.

    “Even though government is not fixing the price of premium motor spirit (PMS) anymore because it is deregulated, it is part of the economy. So, the government side will consult anybody that needs to be consulted.

    “We will consult the President as the Minister of Petroleum and then, the Economic Management team because funds are involved.”

    Deputy President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, said that it was believed that when the parties will resume negotiation on December 7, the reversal must have been effected.

    “We took one week adjournment for them to reverse it (fuel increment) for us to begin discussions because the GMD (Group Managing Director) was saying that he can’t just announce it there, that he needs to do consultations.

    “Exactly one week will be next week Friday so the following Monday we will reconvene by 5pm. We insisted on 2pm, the Minister said 7pm but we eventually agreed by 5pm.

    “We insisted on reversal for any other talk to place although we have agreed to brief our organs, the NLC NAC is meeting today (Friday) so we are briefing our NAC, we may have to delay other organs after that Monday if they didn’t announce it.

    “That’s why we said we don’t need to be shouting strike, we need to put our house in order,” Ajaero, who doubles as the General- Secretary of National Union of Electricity Employees said.

    Earlier, President of the Trade Union Congress (TUC), Quari Olaleye told reporters that the organised labour wants government to reverse the last fuel price increase, which occurred while the two sides were already on the negotiation table.

    Olaleye called for sincerity for the negotiations to progress smoothly.

    Before the Thursday night dialogue went behind closed-doors, the TUC President warned government’s delegation to be sincere with the deliberations to avoid further embarrassment and another deadlocked meeting.

    He said: “It will be beneficial when we can agree and disagree constructively on some of the things we have on the table, and have a clear communication even which a layman will understanding where we are going.

    “We don’t want this meeting of going front and back every time that is so confusing that we don’t even understand what we are discussing, we must be leaving here today with an agreement.”

    Labour had accused the government of insincerity in its meeting last Sunday, leading to a walkout.

    In his remarks, the SGF commended organised labour for putting the nation first.

    He praised the labour leadership for working very hard to see that the welfare of their members and the Nigerian people was catered for.

    Mustapha assured the organised labour of government’s preparedness to work hand in hand with them to ensure that resolutions were reached at the meeting on any issue that borders on the welfare of Nigerians.

    He expressed the belief that negotiations would be done in the overreaching interest of the people of Nigeria as the center piece.

    The SGF thanked the organised labour for their display of patriotism when they went for their last recess on the request of the labour leadership.

    He said whatever went out from the last meeting; the government side maintained in their reportage that there was no breakdown of talks between the government and labour.

    The SGF said he believed that all the parties must have consulted sufficiently before coming back for them to reach certain conclusions on the issues being discussed that will further advance the cause and the good of Nigerians.

    He thanked the labour for returning to the negotiation table and wished the meeting a short and fruitful discussion.

    Thursday’s meeting was attended by Minister of Humanitarian Affairs and Disaster Management, Hajia Sadiya Farouk; Minister of State, Labour and Employment, Festus Keyamo; Minister of State (Power), Jeddy Agba and Minister of State (Petroleum), Timipriye Sylva.

    Others are: GMD of NNPC, Mele Kyari; Chairman/CEO, National Electricity Regulatory Commission (NERC), Prof. James Momoh and representative of Central Bank of Nigeria (CBN).

  • Nigeria signs MoU to import petrol from Niger

    Nigeria signs MoU to import petrol from Niger

    Nigeria has signed an agreement for transportation of imported petroleum products from Niger Republic.

    “The Federal Government of Nigeria and the Republic of Niger have signed a Memorandum of Understanding (MoU) for petroleum products transportation and storage,” the Ministry of Petroleum Resources explained in a statement.

    Following bilateral agreements between President Muhammadu Buhari and President Mahamadou Issoufou, talks have been on-going between two countries for over four months – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), on petroleum products transportation and storage.

    Niger Republic’s Soraz Refinery in Zinder, some 260km from the Nigerian border, has an installed refining capacity of 20,000 barrels per day.

    Niger’s total domestic requirement is about 5,000bpd, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

    A statement by the GGM/SA Media to the Minister of State for Petroleum Resources, Garba Deen Muhammad, explaned the MoU was signed by the GMD NNPC, Mallam Mele Kyari and the Director General of SONIDEP, Mr. Alio Toune under the supervision of the Ministers of State for Petroleum, Çhief Timipre Sylva and Mr. Foumakoye Gado, respectively with the Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim in attendance.

    Speaking shortly after the MoU signing, Sylva expressed delight over the development, describing it as another huge step in developing trade relations between both countries.

    “This is a major step forward. Niger Republic has some excess products which needs to be evacuated. Nigeria has the market for these products. Therefore, this is going to be a win-win relation for both countries. My hope is that this is going to be the beginning of deepening trade relations between Niger Republic and Nigeria,” the Minister added.

    Also commenting on the development, the Secretary General of African Petroleum Producers Organisation (APPO), Dr. Omar Ibrahim, said he could not be happier with what he witnessed in terms of co-operation and collaboration between the two APPO member countries in the area of hydrocarbons.

    “I want to commend the Federal Republic of Nigeria and the Republic of Niger and their leadership for this milestone.

    Kyari said the two countries have had long engagements in the last four to five months with a view to restoring the importation of petroleum products (excess production) from Niger into Nigeria.

    “With this development, we hope to have a long-lasting and sustainable commercial framework to having a pipeline from the Soraz Refinery in Zinder (Niger) into the most proximate Nigerian city so that we can develop a depot.

    “We are happy that we have reached that conclusion and our two ministers have endorsed this framework. We are also working on detailed MoU between our two companies so that we can continue the execution process immediately.”

    The NNPC helmsman further noted that being the most experienced of the two oil companies, the NNPC would support SONIDEP in terms of training and capacity building.

  • Why some filling stations in Lagos are not selling fuel – IPMAN

    Why some filling stations in Lagos are not selling fuel – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Friday said that filling stations in Lagos were not selling fuel because of uncertainty of the new pump price.

    IPMAN’s President, Mr Chinedu Okoronkwo, made this known in an interview in Lagos.

    The Petroleum Products Marketing Company (PPMC) had adjusted the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, from N147. 67 to N155.17 effective Nov. 13.

    A NAN correspondent who monitored the situation at Ikeja, Iyana-Ipaja and Abule-Egba areas of Lagos State observed that only a few filling stations were still selling petrol at the old pump price of N159 per litre.

    Others, especially those owned by independent marketers, were not opened for business thereby creating fear of fuel scarcity among motorists and residents of the areas.

    However, Okoronkwo told NAN that there was no need for panic buying because the move was based on the price notation to marketers by the PPMC.

    He said: “We buy from them and we heard that there is a new ex-depot price.

    “Now people will like to know whether that is true from the source so that they will not sell at a loss.

    “So the marketers are waiting for clarification from PPMC because a lot of people were not privy to have seen the memo.

    “Hopefully, it will be resolved soon and everybody will start selling.’’

    Okoronkwo insisted that the Federal Government was right to remove subsidy on PMS in spite of the hike in the pump price of petrol which may hit N170 soon.

    He said: “We know this was bound to happen as the price is now determined by market forces but it will be beneficial to the country in the long run.

    “More investors are coming into the sector and once we are able to refine our products locally, the pump prices will reduce.

    “Walter Smith Refinery in Imo is already up and running and people have started loading products from there. Dangote Refinery in Lagos will soon start operation too.

    “We have others in Bayelsa and Rivers and by 2021 we will be expecting the prices to stabilise.’’

  • Fuel, electricity hike: Again, FG, labour talks deadlocked, postponed

    Fuel, electricity hike: Again, FG, labour talks deadlocked, postponed

    The meeting between the Federal Government and the Organised Labour over the recent hike in fuel price and electricity tariff has been postponed till Monday, Sept. 28, for further deliberation.

    Labour leaders and the Federal Government had met in Abuja on Thursday to deliberate on the development after organised labour threatened to shut down the economy on Monday, Sept. 28, if the hikes were not reversed.

    But with the duo unable to reach an agreement during the closed door meeting, Mr Ayuba Wabba, President of the Nigeria Congress (NLC), told anxious newsmen that discussions would continue on Monday.

    “The discussions will continue on Monday, by 3 p.m,” he said.

    NAN reports that shortly before the bilateral talks went into the closed door session, Mr Boss Mustapha, Secretary to the Government of the Federation (SGF), had appealed to the organised labour to “show understanding on the issues”.

    “The recent increase in electricity tariff and petroleum pump price was not intended to cause pain or harm. The decision was taken in the utmost interest of all people and the working class.

    “I had the privilege of working in the Presidential Transition Committee set up by President Muhammadu Buhari and I remembered some of the decisions that were presented to him.

    “One of the decisions by the team considered as low hanging fruit in 2015 was deregulation. President Buhari objected to it. Thereafter, the issue was reflected in the final report.

    “There was the need to consider seriously the issues relating to deregulation of petroleum sector and the need to look at energy sufficiency and efficiency, and what needed to be done.

    “When the report was submitted to President Buhari, his reaction was that the Nigerian people elected him not to inflict pain on them.

    “Five years down the line, that decision has become imperative and cannot be tampered with, it is a decision that must have been painfully considered.

    “I am just sharing this reflection in order to put in perceptive the fact that the decision was never intended to cause great pain,” he said.

    He also noted that the National Minimum Wage was implemented over a year ago but that the ravaging COVID-19 pandemic had affected the entire world and had disrupted the strongest economy.

    Boss added that due to the pandemic, countries of the world were still trying to find solutions to the economic disruption that COVID-19 had brought to the entire world.

    “Nigeria does not survive in isolation. We, as a government and as a people and those of you on the other side of the divide, are part of the government, because you are leaders in your own right in the places you operate and in the spheres where you exercise influence.

    “So, it is for this reason that today we will resolve matters relating to the issues that have made us gathered here, because today, I am confident that each and everyone has Nigeria at heart.

    “The leadership of NLC, TUC and other leaders should assist the government toward arriving at a conclusion on these issues.

    “I understand the hardship that certain decisions of the government will always bring and I believe that in the course of these hardships, there are opportunities that will ameliorate the hardship,” he said.

    Sen. Chris Ngige, Minister of Labour and Employment, in a remark, noted that the government representatives at the meeting had been enlarged to discuss how to ameliorate the pains that the modulation of the petroleum price and the increase in tariff had brought.

    “Today’s meeting is a bilateral meeting and it has a new colouration in that some specific items had been listed.

    “We will like to assure the labour unions that we we are addressing the issue and we think that we can resolve the issues and nobody will be in the mood to go on strike or go on demonstrations in the streets as this country belongs to all of us.

    “So, whatever is going to be discussed here, it will be for the furtherance of the Constitution of the Federal Republic of Nigeria, especially the section that talks about welfare and security of the citizens of the country,” he said.

    In his remarks, Wabba, NLC boss, said that the best way to address social economy or labour issues and challenges was to proactively engage Labour unions and have their perspective.

    READ ALSO NLC suspends planned protest

    “The last time we were here, we also had a lot of discussions about what we expect that should have been done; we have been on the same issue for over 30 years.

    “I think the argument has been the same – people want to see reduction in those prices, which will bring improvement to the lives of Nigerians, particularly workers.

    “Clearly, part of the challenge is that this new increase has also reduced our purchasing power and eroded the gains that we have been able to make with the minimum wage. As we speak, many states are yet to implement it,” Wabba said.

    Mr Quadir Olaleye, TUC President, in his contribution, said that government must first revert to the previous price template for both fuel pump and electricity tariff before labour will dialogue with it on the economic recovery solutions.

    He insisted that TUC maintains its last week’s position on embarking on nationwide protest or proceed on strike if the government refused to reverse the increase in electricity and fuel pump price.

    Olaleye called on the government to diversify the economy and increase its revenue base