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Tag: NMDPRA

  • NMDPRA addresses fuel scarcity scare

    NMDPRA addresses fuel scarcity scare

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians and motorists that there is no need for panic buying of fuel, as there is enough stock available.

    Mr Ayo Cardoso, Coordinator, South-West Region of NMDPRA, gave the assurance in an interview on Tuesday in Lagos State.

    Cardoso, who said there was no fuel shortage, urged the public against engaging in panic buying as a result of long queues in the Lagos metropolis.

    According to him, to address the ongoing queues in Lagos, NMDPRA is actively monitoring and investigating the causes.

    Mr Tunji Oyebanji, CEO of 11 Plc, also confirmed that there was an adequate stock of fuel available.

    He mentioned that the delay in lifting fuel from the depot might be due to the recently concluded Surulere Federal Constituency 1 election on Feb. 3.

    Mr Hammed Fashola, the National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), suggested that the queues might be attributed to panic buying by customers rather than an actual shortage of fuel.

    He said: “Some marketers could not lift fuel on Saturday due to the election, but the queue will be normalised before Thursday.

    “I am not in Lagos as we speak. But I heard about it too that there are queues in Lagos. It may just be panic buying. I am not sure there is fuel scarcity,” Fashola said.

    Meanwhile, some marketers who prefers not to be mentioned told NAN that the increase in forex also contributed to the ongoing queues.

    They claimed that marketers are battling with the current dollar rate of N1,550 to a dollar, which makes it difficult to import fuel.

    According to them, it is only NNPCL that can import petrol at this rate and no marketers can cope with the present reality of foreign exchange

    A correspondents, who monitored some fuel stations within Lagos, reports that there was traffic gridlock in some parts of Lagos on Tuesday due to the queues.

    Motorists formed long queues outside the forecourts of filling stations, such as NNPCL, Mobil and Conoil along the Ikorodu road axis, which appeared as fresh scarcity of fuel.

    Also, at the Total filling station at the Mobolaji Bank Anthony Way and Northwest at Gbagada,  queues led to heavy tariff around the Ikeja and Gbagada axis respectively.

    Motorists endured an unusual heavy gridlock, due to long queue of motorists waiting to buy petrol at filling stations.

    It was also noticed that many of the filling stations along the Ikeja axis, through Obafemi Awolowo Road in Ikeja and Ikorodu road were shut.

    Meanwhile, some motorists had begun to hike the prices of their fares due to the development.

    A commercial transport operator, plying the Ikeja- Costain axis, told our correspondents that he was forced to hike his fees after waiting for hours to buy fuel.

    The commercial transport operator, who prefers anonymity, said, “Do you know how long it took me to buy fuel today? Anybody who doesn’t want to enter should stay out.”

    It was observed that all the filling stations along Ogunnusi Road inbound Berger did not sell petrol to customers.

    It was also gathered that the queues were noticeable in major filling stations considered to be selling at lower rates.

    Meanwhile, a number of filling stations owned by the Nigerian National Petroleum Company Ltd.,(NNPC), along the Lagos-Ibadan Expressway,  did not dispense fuel too.

  • Nigerians will bear brunt of incessant increase in tariffs on petroleum products – IPMAN warns

    Nigerians will bear brunt of incessant increase in tariffs on petroleum products – IPMAN warns

    The Independent Petroleum Marketers Association of Nigeria (lPMAN) says incessant increase in tariffs on petroleum products by the Nigerian Midstream and Downstream Petroleum Regulatory (NMDPRA) might adversely hinder the success of oil subsidy removal.

    Alhaji Debo Ahmed, National President, IPMAN made the observation in a statement he issued to newsmen on Tuesday in Lagos.

    Ahmed said the increase could also adversely affect the overall business environment of the downstream sector.

    He said the arbitrary and excessive nature of the increment not only discourage potential investors, but create barriers for fresh investors to enter and place burden on existing businesses.

    According to him, the resultant cost is transferred to the consumers and the general public.

    “Those that are already in the business will pass the burden to the consuming public and definitely this affects the cost of products.

    “I think NMDPRA, as agent to the Federal Government, should advise them on the way to succeed on this removal of oil subsidy,” he said.

    Ahmed noted that the recent spike in diesel pricing and the mounting unpaid bills emanating from the old Petroleum Equalisation Funds demonstrate the tangible impact on stakeholders in the downstream sector.

    “In economics, payment of internal debts increase the economic activities of a country and lessen the attention given to the dollar.

    “When internal economic activities boom, it generates employment and spurs up the value of the local currency,” Ahmed added.

    “IPMAN, as an association, will advise the authorities to critically look into the tariff increase, which will not help the oil subsidy removal.

    “Between 2020 and 2023, NMDPRA had increased some, if not all, of its operational tariffs to over 600 per cent and added other unnecessary tariffs, generating lines to the already existing ones,” he said.

    He cited an example that calibration per tank, which  hitherto charged N20,000 per tank, had been increased to N150,000 per tank, representing 650 per cent.

    He said that the pressure testing, which cost N20 000 per tank, had also increased to N150,000 per tank, respectively.

    Ahmed pointed out that the cumulative effect of these tariff increases was imposing considerable financial burdens on existing and new stations.

    According to him, renewing a license for an existing station could amount to over N2 million, while new stations might face expenses exceeding N4 million.

    Ahmed expressed concerns about a new five per cent tax on the sales or acquisition of a filling station, which he believed could discourage sales, mergers, and acquisitions within the industry.

    He explained that these tariff increases were counter productive to the goal of deregulation, intended to attract more investors, open the market, ensure product availability, and offer consumers choices.

  • Just In: Tinubu appoints ED and Governing Council of Midstream, Downstream Gas Infrastructure Fund

    Just In: Tinubu appoints ED and Governing Council of Midstream, Downstream Gas Infrastructure Fund

    President Bola Tinubu has approved the appointment of a Governing Council of the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to be domiciled in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

    See full list below:

    (1) MDGIF Governing Council Chairman — Minister of State, Petroleum Resources (Gas)

    (2) MDGIF Executive Director — Mr. Oluwole Adama

    (3) MDGIF Governing Council Secretary — Mr. Joseph Tolorunshe

    (4) NMDPRA Chief Executive — Engr. Farouk Ahmed

    (5) Representative of the Central Bank of Nigeria (CBN)

    (6) Representative of the Federal Ministry of Finance

    (7) MDGIF Independent Member — Ms. Amina Maina (North-East)

    (8) MDGIF Independent Member — Mr. Edet David Ubong (South-South)

    (9) MDGIF Independent Member — Mr. Tajudeen Bolaji Musa (South-West)

    The President mandates the appointees to discharge their duties by upholding the highest standards of transparency, discipline, and patriotism in line with his administration’s drive to enhance the role of the gas sector in achieving robust and inclusive economic growth for Nigeria.

    Chief Ajuri Ngelale

    Special Adviser to the President

    (Media & Publicity)

  • Tinubu appoints board members for gas infrastructure fund

    Tinubu appoints board members for gas infrastructure fund

    President Bola Tinubu has approved the appointment of the board members of the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

    Ajuri Ngelale, Special Adviser to the President on Media and Publicity, disclosed this in a statement on Friday in Abuja.

    He said that the MDGIF would be domiciled in the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    Ngelale said that Tinubu mandated the appointees to discharge their duties by upholding the highest standards of transparency, discipline and patriotism.

    He said those virtues were in line with the administration’s drive to enhance the role of the gas sector in achieving robust and inclusive economic growth for Nigeria.

    The appointees are MDGIF Governing Council Chairman – Minister of State, Petroleum Resources (Gas), Ekperikpe Ekpo; MDGIF Executive Director – Mr Oluwole Adama and MDGIF Governing Council Secretary – Mr Joseph Tolorunshe.

    Mr Farouk Ahmed is the NMDPRA Chief Executive, with representatives of the Central Bank of Nigeria, Federal Ministry of Finance as parts of the board.

    The three MDGIF Independent Member of the board are Ms Amina Maina (North-East), Mr Edet David Ubong (South-South) and Mr Tajudeen Bolaji Musa (South-West).

  • Nigeria’s daily petrol consumption drops by 33.58%

    Nigeria’s daily petrol consumption drops by 33.58%

    Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), says the country’s domestic consumption for petrol has significantly dropped from 66.7 million liters, before the deregulation, to 44.3 million liters per day.

    Mr Farouk Ahmed, the Authority Chief Executive of NMDPRA said that the reduction represents about
    33.58 per cent daily.

    Ahmed disclosed this in his keynote address at the opening session of the Oil Trading and Logistics (OTL) 2023 Africa Week 2023 on Monday in Lagos.

    The NMDPRA boss said eight wholesale petroleum product suppliers out of 94 licensed oil marketers were issued permits to import into the country.

    According to him, those licensed delivered eight cargoes of petrol totaling 251,000 MT (291,238,670.69 litres) between June and September.

    Ahmed said that the drop in the number of licensed importers was due to the challenge of forex illiquidity which had constrained the oil marketing companies’ ability to import the product.

    He expressed optimism that the necessary efforts taken by the government to improve the stability of the harmonised forex market would support the importation of petrol by more oil marketing companies alongside the Nigerian National Petroleum Company Ltd,.

    Ahmed said: “Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.

    “The efforts of the Nigerian government towards ensuring that the overall national energy security of the country is administered in a manner that optimises position within the complex global energy dynamics.

    Ahmed said that a critical pillar for pursuing a structured energy transition in Nigeria is the adoption of gas as a transition fuel and the emplacement of strategic gas development frameworks through the Decade of Gas Program (DOGP).

    “The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade.

    “The programme has optimal industry inclusiveness and it’s making steady progress in the implementation of all its strategic objectives, initiatives and projects,” he said.

    Ahmed, therefore, noted that the full deregulation of the sector had further enhanced the nation’s capacity to adopt Compressed Natural Gas (CNG ) as a more sustainable and affordable alternative automotive fuel.

    “President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.

    He stated that the PiCNG had already commenced work and  adequately supported with all necessary tools, including required funding to meet its aspirations.

    Over 200 participants were in attendant with over 20 exhibitors.

  • NMDPRA shuts 6 petrol stations, gas plant in Delta

    NMDPRA shuts 6 petrol stations, gas plant in Delta

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Warri Zonal Office has sealed six petrol retail outlets and an illegal gas refiling plant over sharp practices in Delta State.

    Mr Goziem Chukwurah, NMDPRA, Head of Operations in Warri office on Tuesday led a surveillance team of the regulatory authority, to seal  the  stations in Uvwie and Udu Local Government Areas of the state.

    The filling stations were sealed over offences bordering on under-dispensing and lack of operational licenses.

    The  defaulters included  Bwede filling station; Pius A Idoghor Oil and Gas; Eshegbe Oil; Fetega Oil and Sole Energy Enterprise all in Orhuwhorun town, Udu Local Government Area.

    Others are,  Falcon Bay Oil at PTI junction and another Falcon Bay Oil located on the DSC expressway both in Uvwie Local Government Area.

    Chukwurah addressed  newsmen at the end of the  exercise on behalf of the NMDPRA Coordinator in Delta, Mr Victor Ohwodiasa.

    Ohwodiasa said  that the purpose of the exercise was   to ensure that consumers get values for their money.

    “Most of the petrol stations we visited were selling without operational licences, we have to shutdown them  and invite the owners to our office.

    “We sealed six petrol retail outlets and an illegal gas plant for various offences ranging from lack of operational licenses and under-dispensing of petroleum products to the consumers,” he said.

    Ohwodiasa urged  consumers to report any petroleum marketer that indulged in sharp practices to the regulatory body for appropriate action.

    The coordinator assured that the exercise would be a continuous one until the marketers do the right thing.

    Ohwodiasa warned marketers to desist from illegalities to avoid their stations been closed.

    Meanwhile, a staff of the Falcon Bay Oil was apprehended for violating the NMDPRA’s seal on their dispensing machine.

    The suspect was consequently handed over to the appropriate authority for prosecution.

  • Nigeria’s aviation authority probes fuel contamination

    Nigeria’s aviation authority probes fuel contamination

    Nigeria’s Civil Aviation Authority (NCAA) has launched an extensive investigation into a recent incident involving water contamination in the fuel tanks of certain aircraft.

    The move comes as part of the authority’s efforts to prevent future occurrences of such safety breaches and ensure the safety of air travel in the country.

    Speaking at a meeting in Abuja, the Director General of NCAA Musa Nuhu, emphasized the urgency of the investigation and stated that the agency was intensifying its efforts to determine the root cause of the fuel contamination issue.

    Nuhu stressed that this matter goes beyond the purview of the aviation ecosystem and requires engagement with the regulator of the downstream petroleum sector.

    “The fuel contamination is outside the purview of the aviation ecosystem, which is why we have engaged the regulator of the downstream sector. We have been in consultation with NMDPRA because they certify all the oil companies in Nigeria,” he said.

    Nuhu added that the collaboration between NCAA and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had become crucial due to the identified gaps resulting from the lack of deliberate collaboration between the two entities, as well as the Federal Airports Authority of Nigeria (FAAN), on fuel quality monitoring.

    To address this issue comprehensively, he said a committee consisting of representatives from the NCAA, FAAN, NMDPRA, National Society of Independent Petroleum Marketers (NSIB), airlines, pilots, fuel depot operators, aircraft maintenance officers, and other stakeholders, will be inaugurated soon.

    The committee’s primary responsibility will be to ensure the constant monitoring and maintenance of aviation fuel quality.

     

  • How daily petrol consumption dropped by 35% after subsidy removal

    How daily petrol consumption dropped by 35% after subsidy removal

    Daily average consumption of Premium Motor Spirit (PMS), otherwise known as petrol, in Nigeria, has dropped drastically by 35% after President Bola Tinubu removed payments of fuel subsidy.

    TheNewsGuru.com (TNG) reports Nigeria’s daily average petrol consumption figure dropped from 66.6 million litres per day in May to 49. 5 million litres per day in June.

    According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the current daily petrol consumption figure stands at 46.38 million litres as of July.

    Mr Ahmed Farouk, Chief Executive, NMDPRA, confirmed the figures during a stakeholders meeting with oil and gas downstream operators on Monday in Lagos.

    Farouk said the figure represented a 35 per cent reduction when compared with the 65 million litres per day, prior to subsidy removal.

    According to him, an average truck out on a daily basis for petrol consumption, after announcing subsidy removal on May 29, reduced to 46.38 million litres.

    “The current daily consumption has drastically reduced as against 65 million litres which had been the daily consumption before subsidy removal.

    “In January, it was 62 million litres per day; February, 62 million litres per day; March, 71.4 million litres per day; April, 67.7 million litres per day; May 66.6 million litres per day; June, 49. 5 million litres per day and July, 46.3 million litres per day,” he said.

    The NMDPRA boss said that the essence of the meeting was to review the downstream sector after the subsidy removal and also to thank marketers who had taken the offer to import petrol.

    On petrol importation, Farouk said that over 56 companies applied for import licenses to bring in petrol, while only 10 made commitment to import.

    He said that currently three marketers, namely Emadeb Energy, A.Y Shafa and Prudent Energy had imported petrol into the country.

    He added that others, like 11 Plc, are also indicating interest to import petrol in August and September, respectively.

    “The era of subsidy payment is gone, we encourage all marketers who are interested in importing petrol to apply for license.

    “The meeting is to encourage marketers to import, so that there will be availability of petrol at every nooks and crannies of the nation.

    “The marketers have the choice to fix their price, because it is a free market where there will be competition.

    “It is no longer Nigeria National Petroleum Corporation Limited (NNPCL) dominating the market, there will be other players to compete with NNPCL.

    “We do not want any dominant player in the market, that was why we liberalised the market for everybody to play, ” Farouk emphasised.

    Farouk said that the authority was working with the Federal Competition and Consumer Protection Commission (FCCPC), to checkmate marketers from taking unduly advantage of the consumers.

    He said that the NMDPRA would ensure consumer protection at every station, adding that the quality of products import would be focused upon, to avoid substandard petrol.

    “We will ensure safety, consumers protect and standard in ensuring quality control within marketers.

    The meeting had in attendance managing directors of all downstream sector operators, delegation of Major Oil Marketers Association of Nigeria (MOMAN) and Depots Owners Association of Nigeria (DAPPMAN), among others.

  • Deregulation: Monthly fuel consumption declines by 18.5million litres

    Deregulation: Monthly fuel consumption declines by 18.5million litres

    Following the pronouncement by President Bola Tinubu on removal of fuel subsidy, Premium Motor Spirit, popularly called petrol, that was consumed across the country in the first half of 2023 is 11.26 billion litres as consumption reduced by an average of about 18.5 million litres daily in June.

    Data obtained on Sunday from the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja (NMDPRA) on Sunday, showed that between January 1 and May 28, 2023, which was the pre-deregulation period, the total amount of petrol consumed nationwide was about 9.9 billion litres.

    The average consumption for the 148-day period was put at 66.9 million litres, indicating the country consumed an average of 66.9 million litres of petrol daily during the five-month period when subsidy on petrol was still in place.

    But figures from the Federal Government agency indicated that between June 1 to June 28, 2023, which was described as the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.

    An analysis of the data by our correspondent showed that the difference between the average monthly consumption figures during the pre-deregulation and post-deregulation periods was about 18.5 million litres.

    This implies that the average daily consumption of petrol across the country reduced by about 18.5 million litres after subsidy on commodity was stopped by the Federal Government.

    It was, however, observed that petrol consumption rose above 100 million litres in some days, while it fell to below 10 million litres in few other days.

    A random pick of petrol consumption figures contained in the NMDPRA report, for instance, showed that on March 8, April 20, and May 16, Nigerians consumed 103.6 million litres, 105.02 million litres, and 101.9 million litres respectively.

    These were during the ore-deregulation days, as figures from the post-deregulation period indicated that the country never consumed beyond 78.84 million litres all through the 28-day period captured in the document.

    In fact, the 78.84 million litres was consumed on June 20, and it was the highest consumption figure during the post-deregulation period, while the lowest figure during the same period was the 470,000 litres that was consumed nationwide on June 11.

  • Court declines Mobil’s plea for an order stopping NMDPRA’s sanction

    Court declines Mobil’s plea for an order stopping NMDPRA’s sanction

    A Federal High Court, Abuja, on Tuesday, refused to grant Mobil Producing Nigeria Unlimited’s prayer for an order restraining the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from imposing any sanction on it.

    The sanction in respect of its operations in Oil Mining Leases 67,68,70 and 104 pending the hearing and determination of the motion on notice for interlocutory injunction.

    Justice Inyang Ekwo, in a ruling on the motion ex-parte moved by counsel to Mobil, Ituah Imhanze, rather ordered the plaintiff to put NMDPRA, the sole defendant in the suit, on notice.

    Justice Ekwo, who directed the NMDPRA to show cause on the next adjourned date why Mobil’s prayers ought not to be granted, also ordered the plaintiff to serve the defendant with all the processes in the matter.

    The judge adjourned the matter until July 5 for hearing.

    Mobil, the oil giant, had, in the ex-parte motion marked: FHC/ABJ/CS/844/2023, sued NMDPRA.

    In the motion dated June 16 and filed June 19 by its lawyer, Prof. Fabian Ajogwu, SAN, Mobil prayed for two orders.

    Giving seven grounds why its motion should be granted, the lawyer argued that the company is the operator of the Nigerian National Petroleum Company Limited (NNPC Ltd}/ MPN Joint Venture in OMLs 67, 68, 70 and 104 and its field facilities and operating facilities are interconnected by a network of pipelines with high degree of dependency and integration.

    Ajogwu argued that the Petroleum Industry Act by virtue of Section 8 (d) and 318 provided that the Nigerian Upstream Petroleum Regulatory Commission should consider and be in charge of integrated operations and should consider integrated operations as upstream operations and grant relevant approvals in that regard.

    He said that Mobile made an official application to the Nigerian Upstream Petroleum Regulatory Commission for consideration as an integrated operation via a letter dated Dec. 6, 2022.

    “The application was considered and approved by the Nigerian Upstream Petroleum Regulatory Commission, the only statutorily appropriate authority and the approval communicated to the plaintiff/applicant via a letter dated Feb. 2, 2023,” he said.

    Ajogwu, however, said that the NMDPRA, sought to nullify the approval granted by the commission, claiming oversight functions over aspects of the Mobil’s integrated operations which the Nigerian Upstream Petroleum Regulatory Commission, by its letter of Feb. 2, had already claimed oversight authority and granted approval on.

    The senior lawyer alleged that NMDPRA further threatened to sanction the oil company, its chairman and managing director and any other officer for any contravention of its directives or regulations.

    He further alleged that a conflict had thereby ensued from the regulatory bodies claiming oversight over integrated petroleum operations which Mobil currently operates.

    Ajogwu, who accused NMDPRA of ramping up pressure on his client to comply with its directives and submit to its regulatory authority, also alleged that the defendant had further made damning allegations of economic sabotage and crude oil theft against Mobil.

    He prayed the court to grant their reliefs to ensure that Mobil’s “operations are not jeopardised by heavy and unlawful sanctions, and reputational damage by the defendant.”

    NAN