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Tag: NMDPRA

  • We’ve given license to three more marketers to import fuel – NMDPRA

    We’ve given license to three more marketers to import fuel – NMDPRA

    Additional three marketers have been given the license to import petroleum products as from July 1st the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said on Thursday.

    NMDPRA Chief Executive Officer (CEO) Farouk Ahmed made this known on Wednesday, during a meeting with oil marketers.

    In a statement shared via Twitter, Mr Ahmed noted that there is an urgent need for product standardization to prevent situations where consumers might be cheated by the importation of off-spec products into the country.

    According to him, the meeting was aimed at raising an awareness on the requirements of the Petroleum Industry Act (PIA) regarding the full deregulation and importation of petrol.

    The NMDPRA boss said the Nigerian National Petroleum Company (NNPC) Limited had agreed to reduce its petrol import volume to give room for other players in the industry, “therefore any marketer licenced to import petroleum products must comply with set guidelines”.

    “Already, three oil marketers will from July this year start importing petroleum products into the country,” the statement partly read.

    Ahmed revealed that the oil marketers also reached an agreement to enhance cooperation with security agencies with the aim of facilitating the seamless supply and distribution of petroleum.

  • Exxon Mobil accused of illegal lifting of petroleum product

    Exxon Mobil accused of illegal lifting of petroleum product

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has written to the military high command, alleging illegal lifting of petroleum product by Exxon Mobil at Bonny River Terminal in Rivers State.

    The letter, signed by the Authority’s Chief Executive, Mr Farouk Ahmed, and addressed to the Chief of Defence Staff, Gen. Lucky Irabor, was sighted in Abuja on Sunday.

    The letter, with the title “Economic sabotage, criminal damage and theft through illegal petroleum lifting operations at Bonny River Terminal”, alleged that Exxon Mobil was lifting Butane at the terminal with the vessel, marked Barumk Gas without the authorisation or participation of NMDPRA.

    Ahmed, in the letter, stated that NMDPRA was the agency of Government statutorily responsible for regulating operations at the Terminal.

    The letter reads in parts, “This unlawful action is being facilitated with the active connivance of Exxon Mobil who have illegally destroyed the locks on the sea-line valve whose keys are in the custody of the Authority.

    “The actions of Exxon Mobil and Barumk Gas constitute economic sabotage, criminal damage and theft of Nigeria’s national resources.

    “You are by this letter kindly requested to urgently prevent the sailing out of Barumk Gas until investigations into the matter are concluded.”

    The Nigerian National Petroleum Company Limited and its private security contractors, Tantita Security Services Nigeria Limited, have been collaborating with security agents to arrest those perpetuating oil theft in the country.

    A number of them have so far been arrested and are being prosecuted.

  • We won’t fix petrol prices again – NMDPRA

    We won’t fix petrol prices again – NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will no longer fix prices or release templates for Premium Motor Spirit (PMS).

    Authority Chief Executive (ACE), Mr Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market.

    “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said.

    The development was sequel to the removal of subsidy on PMS known as petrol.

    President Bola Tinubu had in his inaugural speech on Monday said fuel subsidy regime had ended with the commencement of his administration.

    Ahmed, however, said the market was now open for everybody that would import as far as they met all the requirements.

    “So, it is not about the Nigerian National Petroleum Company Limited (NNPC Ltd) alone.

    “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to prospective importer.

    “We make sure we guide the operations of everyone in the sector whether at the depot or wherever the product is but we will not put a cap to say this is what the price must be,” he said.

    According to Ahmed, the role of the NNPC is to fix prices of the petrol it imported and not take over the responsibilities of the Authority.

    “In the case of the NNPC, the organisation is the sole importer at this point. We told the NNPC to recover its costs because they know how much it cost them to import the product and sell it.

    “Of course, we also know how much shipping, offshore, ex-depot and ex-pump are. But we cannot tell them to sell at a price because the market is deregulated,” he added.

    The NMDPRA boss also disclosed that the Federal Government has officially scrapped petroleum equalisation as well as the national transport allowance.

    He said the NMDPRA, the federal government and Consumer Protection Commission (FCCPC) would mount aggressive monitoring of activities in the downstream sector to prevent profiteering by petroleum marketers.

    Ahmed further disclosed that marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and recover their costs without impediments.

    On where the importers will source their forex from, Ahmed said the CBN would not give dollar to anyone because of open market, adding that anyone willing to import should get the dollars from anywhere to import.

    According to him, anyone willing to open a letter of credit from any part of the world can do that to import.

    “That marketers can source their forex from anywhere is the beauty of the liberalised market that the NMDPRA has introduced based on the provision of the law”.

    Ahmed said that the market would henceforth be modulated to allow the fluidity of prices, adding that though no template spelt out the pricing components of petrol price.

    He said that, “based on this, the price would no longer be static rather depend on the international price of the gasoline market.

    “This did not imply that marketers could sell at any price”.

    According to him, the NMDPRA and FCCPC will collaborate to curb excesses if certain prices were way above the expected profit margin.

    “The market structure will dictate the price swings at every point in time,” he said.

    Ahmed cautioned against optimism for cheap petroleum products, saying products may not be cheaper because the company would be buying crude oil at the international price.

    “Dangote Refinery is a game changer in terms of accessibility. By the time the NNPC refineries and other modular refineries across the country come on stream, Nigeria will be a net exporter of petroleum products,” he said.

  • Subsidy removal: We’ll ensure smooth transition – NMDPRA

    Subsidy removal: We’ll ensure smooth transition – NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working with NNPC Ltd. and other stakeholders to guarantee a smooth transition following the removal of fuel subsidy.

    Recalled President Bola Tinubu, in his inaugural speech on Monday, said the fuel subsidy regime had ended with the commencement of his administration.

    The authority made this known on Tuesday in a statement signed by Mr Kimchi Apollo, General Manager, Corporate Communications, NMDPRA, to address concerns regarding the removal of fuel subsidy.

    Apollo said the authority was working to avoid disruptions in the supply of Premium Motor Spirit (PMS), also known as petrol, as well as ensure that consumers were not short-changed in any form.

    He assured ample supply of PMS to meet demand, and that the authority had taken necessary steps to ensure that distribution channels remained uninterrupted and fuel readily available at all filling stations nationwide.

    He urged Nigerians not to panic over the removal of subsidy as the authority had ensured availability of petrol nationwide.

    “Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (PIA 2021), which provides for total deregulation of the petroleum downstream sector to drive investment and growth.

    “We, therefore, call on Nigerians to remain calm and resist the urge to stockpile as it poses significant safety hazard.

    “The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation.

    “We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector,” he said. 

  • NNPCL nabs suspected thieves with over 600 barrels of crude oil

    NNPCL nabs suspected thieves with over 600 barrels of crude oil

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) says it has intercepted an illegal Crude Oil Barge and arrested six suspected crude thieves in Warri, Delta State.

    Tantita Security Services Nigeria Limited, a private security contractor, engaged by NNPC Ltd. made the arrests in collaboration with Nigerian security operatives on the premises of MAWE Services.

    Speaking, the Executive Director of Operations and Technical of Tantita, Captain Warredi Enisuoh said MAWE Services had approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to provide services within the confines of lifting sludge.

    The security contractor and the Nigerian security operatives also set ablaze the 1,000 metric tonnes capacity barge at a final execution point in Oteghele, Delta state.

    The barge was destroyed shortly after an inspection of the sites of Mawe Service Limited and associated barge with illegal crude oil.

    On the inspection were some officials of NNPC Ltd. and Tantita Security Services, Journalists, the Nigerian Army and Naval officers, among others.

    The team visited the Mawe Services Jetty, illegal crude oil dump site and Fenog Jetty for Illegal Crude Oil Barge inspection.

    Enisuoh said on the fateful voyage, intelligence reports received by Tantita Security Services Nigeria Ltd and Mason Engineering indicated that the MAWE Yard was being used for activities outside its approval limits.

    He said surveillance and intelligence also revealed that a 1000 metric tonnes capacity barge (FP AMANGWU) was coming to berth alongside its jetty, loaded with illegal crude oil declared as sludge.

    The captain explained that the barge was towed by an unknown Tugboat into Mawe Services Limited’s Jetty and left.

    “A team of Tantita Security Services Operatives continued to monitor the Jetty for suspicious activities. It was observed that a Sewage Truck with Plate No. JR7750XA visited the Jetty twice.

    “During its third visit on May 12, 2023, the Truck was accosted by the Tantita Security Operatives keeping constant vigil over the area. Upon inspection, the substance found inside the tank was not sewage, rather, crude oil.

    “The driver was arrested and handed over to government security operatives.

    “The driver later revealed the destination of the contents, which took us to another yard inland, also operated by Mawe Services Limited.

    “Within the Mawe Services Limited’s premises, there were two metallic cylindrical tanks of about 45,000 liters capacity, each.

    “Both tanks were inspected and one was found to be filled up with Crude Oil,”.

    He said the driver of the Truck confirmed that he had been transferring the contents of the barge into the tank that was filled.

    He said that inspection of the Yard Security Logbook showed that the Truck visited the location severally while the contents of the Truck were well spelt out as “CRUDE OIL”.

    He explained that the perpetrators usually loaded the crude from the big barge in small gallons, batch by batch then transfer to illegal refineries.

    “One new method they use now is that  they obtain documentation and authorisation from the government to fool security agencies, then go on to do other illegal jobs,” the captain said.

    The captain further explained that most times when the suspects were being arrested, they would claim to be newly employed by their companies whereas they were already trained to operate in that line.

    “At the same time I feel sad because the big players always hide behind them while the small errand boys are literally the victims.

    “I believe the law enforcement agents will get to the root of the matter,” he said.

    He said that part of the crude had been evacuated while the rest would go through combustion process.

    Meanwhile, the suspects who were paraded by the combined security team, said they were not aware of any illegal badge of crude oil but were sent by their companies to evacuate waste water with oil from the barge.

    Mr Daniel Dickson, one of the suspects working with First Priority Research Resources International Ltd, the owner of the barge said the barge was hired through Petralon 54, located at Port Harcourt, Rivers State, to cargo crude from Port Harcourt to Warri in 2022.

    Dickson, who said that it was not all the compartments in the barge that contained crude said that it had about 700 barrels of crude oil but in the process of  evacuation in May 2023, the security agents caught them.

  • No basis for current petrol scarcity – PENGASSAN

    No basis for current petrol scarcity – PENGASSAN

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that there was no basis for the current scarcity and price increase of Premium Motor Spirits (PMS) across the country.

    The PENGASSAN President, Mr Festus Osifo and its Secretary General, Mr Lumumba Okugbawa, in a statement on Monday, regretted the hardship that Nigerians were being subjected to as a result of the scarcity and price increase.

    The statement said that data made available to the union showed  there was over 30 days PMS sufficiency in the country.

    “We understand that the parameters imputed into the old Petroleum Products Pricing Regulatory Agency and now Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) template has since changed.

    “This is because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of AGO among others.

    “However, there is no sufficient justification for petrol to be selling for such highly inflated price, thereby subjecting the masses to further difficulties,“ the duo said.

    The duo urged the management of NMDPRA to compel all marketers and retailers to make the products available at the approved price.

    Both leaders also called on the management to  immediately mobilise all its staff in various locations across the country to monitor compliance.

    The leaders urged the management to revoke the licenses of any marketer who did not comply to serve as deterrent.

    “Should this collusion go unchecked, we will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited,“ the leaders said.

  • PENGASSAN urges FG to revoke licence of oil marketers selling above approved price

    PENGASSAN urges FG to revoke licence of oil marketers selling above approved price

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has urged the Federal Government to revoke licences of oil marketers selling above approved pump price of Premuim Motor Spirit (PMS).

    PENGASSAN said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should immediately mobilise its staff in various locations nationwide to monitor compliance and anyone found wanting, should have their licences revoked to serve as a deterrent.

    PENGASSAN, in a statement on Monday by its National President, Mr Festus Osifo, said the call for the revocation of licences became urgent, following  persistent scarcity of PMS in the last six months.

    “Should this collusion go on unchecked, we will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited. A stitch in time saves nine,” he said.

    Osifo, while empathising with Nigerians on the hardship currently faced with the scarcity and drastic hike in PMS price, decried that one litre of PMS is being sold between N185 to N650, depending on the location and outlet.

    “While we understand that the parameters imputed into the old PPPRA and now NMDPRA template has since changed because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of Automotive Gas Oil (AGO) amongst others.

    “There is no sufficient justification for PMS to be selling for such highly inflated price, thereby subjecting the masses to further difficulties.

    “Even though we have some good marketers who tend to play by the rules, others who are overbearing have deployed methods of creating artificial scarcities to hike the price of the product uncontrollably.

    “From data available to us from our members, there is over 30 days PMS sufficiency in the country; hence there is no basis for the current scarcity and hardship that Nigerians are being subjected to,” he said.

    He said the national leadership of PENGASSAN had been following up with its members in NNPC Trading Limited who were responsible for assigning the products to marketers.

    He said it has been following its teaming members from NMDPRA in various depots and terminals across the country on the need to carry out their functions expeditiously.

    He said these members were responsible for issuing cargo clearance, monitoring compliance, routing inspection, metering calibration/maintenance, accurate delivery to trucks and record keeping, among others.

  • NMDPRA seals filling stations for selling PMS above regulated price

    NMDPRA seals filling stations for selling PMS above regulated price

    Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Osogbo, on Thursday, sealed eight filling stations in the state for allegedly selling premium motor spirit (PMS) above the government-approved pump price.

    NMDPRA Coordinator in Osun, Mr Kunle Adeyemo, said this after the agency’s routine surveillance of filling stations in Osogbo, the state capital.

    Adeyemo said that the surveillance was aimed at sensitising the public that the pump price of petrol, as approved by the Federal Government, had not changed.

    He said that the surveillance operation would continue on a daily basis until all marketers within the state reverted to the government-approved price for PMS.

    “We are out basically because prices of fuel are getting erratic and we are trying to tell the people that there is a specific price for petroleum and government has not changed it.

    “We want to ensure that every filling station in the state adheres strictly to the official price of between N179 and N180 per litre,” he said.

    Adeyemo said that the affected filling stations were sealed for selling above the official pump rice.

    He said that the agency would continue to work round the clock to ensure that the masses were not in any way cheated by petroleum marketers.

    The NMDPRA coordinator appealed to the general public to always report sharp practices by petroleum marketers at the agency’s office in Osogbo for appropriate action.

  • Fuel scarcity will soon be over – NMDPRA assures

    Fuel scarcity will soon be over – NMDPRA assures

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that the prevailing fuel crisis ravaging various parts of the country would soon disappear.

    Its Coordinator in Delta, Mr Victor Ohwodiasa, gave the assurance when he led a team of the regulatory authority on an unscheduled inspection visit to some petroleum depots at Ifiekporo, on Thursday evening and Friday in Delta State.

    Ohwodiasa said that a lot of vessels laden with Premium Motor Spirit (PMS) known as Petrol were already coming into the state.

    He said the regulatory authority would ensure that the vessels discharge products as quickly as possible.

    “We will ensure that the depots receiving these products lift them out to the end users. By the time we have all the depots wet with PMS and they are lifting regularly, the looming scarcity we are experiencing will disappear,” Ohwodiasa said.

    The agency’s coordinator said essence of the visit was to ensure that depots with the products dispensed to licenced retail outlets, eliminate middle men and also avoid diversion.

    “Once we get our daily manifest, we send our men out to make sure that those trucks gets to their actual locations.

    “There might be one or two infractions; we have apprehended about two persons for product diversion and they were made to face the full wrath of the law.

    “As a regulatory authority, saddled with the responsibility of regulating the Midstream and Downstream of the Oil and Gas sector in Nigeria, we will continue to do what we need to do.

    “This is to ensure that the products are available and adequately and fairly distributed within Delta and neighboring states,” he said.

    Ohwodiasa said the NMDPRA would carry out intensed routine surveillance, adding that it would sustain the tempo to ensure that the right things were done in the Midstream and Downstream sector of the oil and gas industry.

    He, however, urged people to stop panic buying, assuring that the Federal Government was doing everything possible to ensure availability of petroleum products in the country, particularly during the Yuletide season and beyond.

    Ohwodiasa added that NMDPRA would ensure that the products get to the consumers at the right price, quality and quantity.

    Among the depots visited were: Matrix Energy Group, Pinnacle Oil and Gas Ltd. and AYM Shafa Ltd.

    Speaking on behalf of the Matrix Energy, Mr Francis Ibe, the Terminal Manager, Matrix Energy, said that the PMS stock level at the Warri Depot was 14 million litres on Thursday.

    Ibe said as at evening of Thursday, it had trucked out over four million litres.

    “With what I am pushing out, I know it will not be enough. Before now on weekly basis, we were receiving 40 million litres of PMS, but at the moment, we barely received 40 million in two weeks. So you can see the difference.

    “Fourty million litres in one week as against receiving one vessels in two weeks cannot solve the problem. There is a serious supply gap,” Ibe said.

    Also, Mr Luke Nnajieze, the Depot Manager, Pinnacle Oil and Gas, Warri Depot, said that the current stock level of the company in Warri as at Thursday morning was
    3.1 million litres of Premium Motor Spirit (PMS).

    Nnajieze added that the Automated Gasoline Oil (AGO) was 2.9 million litres. At the moment, we are out of stock of Dual Purpose Kerosene (DPK).

    “On daily basis, we trucked 2.5 million litres to 3 million litres of PMS,” he said.

    Nnajieze identified heavy vehicular gridlock as a major challenge confronting their business in the area, calling on the government to assist in expanding or fixing the bad access road.

    He also called for the dredging of the Escravos Bar to allow bigger vessels to navigate and bring in petroleum products.

  • NMDPRA addresses report on increase in fuel pump price by FG

    NMDPRA addresses report on increase in fuel pump price by FG

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the Federal Government has no intention of increasing the price of Premium Motor Spirit (PMS) during the festive period.

    The General Manager, Corporate Communications, NMDPRA, Mr. Kimchi Apollo said this through an advisory which addressed speculations on the increase in price and availability of PMS.

    He said the Nigerian National Petroleum Corporation Limited (NNPCL) had imported PMS with current stock levels sufficient for 34 days.

    “Consequently, marketers and the general public are advised to avoid panic buying, diversion of products and hoarding.

    “In keeping with the Authority’s responsibilities as outlined in the Petroleum Industry Act (PIA), the Authority assures the public that it would continue to monitor the supply and distribution of petroleum products nationwide, especially during this holiday season,” he said.