Tag: NNPCL

  • Presidency reveals why FG can’t intervene in NNPCL, Dangote petrol price controversy 

    Presidency reveals why FG can’t intervene in NNPCL, Dangote petrol price controversy 

    The Presidency has revealed why agencies of government cannot intervene in the raging price controversy between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, saying both companies are private entities.

    Answering questions from journalists after addressing a press conference at the Presidential Villa on Wednesday, Senior Special Assistant to the President on Digital and New Media, O’tega Ogra, said the petroleum sector had been fully deregulated by government and the operators including the NNPCL and Dangote are operating as private businesses.

    He said even though government has a hand in NNPCL, Petroleum Industry Act, ensures that the NNPC is operating on its own and that is why the government cannot intervene in the price controversy.

    Ogra however declared that the people stand to benefit from what is happening at the end of the day, saying “it’s the consumer who benefits if a price war starts.”

    He said, “As far as this government is concerned, the PMS regime has been deregulated, Dangote is a private company. We should not forget NNPCL is a limited liability company. Whatever controversy both of them are having has nothing to do with the government.

    “If you go by the terms of Petroleum Industry Act, NNPC is on its own, even though it’s owned by the federal government, the state governments and local councils, but it’s operating as a limited liability company. You can see what the private marketers said that ‘if they find the NNPCL or Dangote’s prices are too much for them, they will resort to importing fuel because it’s a deregulated market,’ At the end of the day, it’s the consumer who benefits if a price war starts.

    “If NNPCL fuel is too much (expensive), the private marketers can go to the market and bring in their own fuel and sell at the price that they think is very reasonable and profitable for them. So my answer is that, as far as government is concerned, government is not dabbling ino this controversy. Dangote is a private company, it’s working on its own. NNPCL is a limited liability company and it has the right to fix the price of its own fuel.

    “As a counterpart to that, government has a programme, which somebody mentioned earlier about CNG. The government wants to make sure that Nigerians have a choice. If you don’t want to use PMS, you can use CNG and you can see what’s going on in some of our cities; Lagos, Ibadan, Benin and some other places where transpor

  • Niger Delta lawyers ask NNPCL Boss, Kyari to make Port Harcourt Refinery operational Before End Of September

    Niger Delta lawyers ask NNPCL Boss, Kyari to make Port Harcourt Refinery operational Before End Of September

    The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the Oil and Gas Sector, has urged the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, to ensure that the Port Harcourt Refinery becomes operational before the end of September as he promised.

    In a press conference jointly addressed on Monday by Barr. Dickens A. Opu and Barr. Werigbelegha Zinake, the group lamented that, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains non-operational.

    The group expressed concern about the energy crisis in the country caused by the non-functionality of local refineries, continued dependence on the importation of petroleum products, and the resulting cost implications for the country.

    The Lawyers noted that the failure of the Mele Kyari-led management of the NNPC to revamp local refineries has further worsened the country’s energy crisis and impoverished the people of the oil-producing Niger Delta, who are forced to buy fuel at higher rates than most parts of the country.

    The group alleged that the Port Harcourt refinery is being planned to be converted into a blending plant. They claim that substandard petroleum products from Russia will be mixed with chemicals and sold to the people of the Niger Delta.

    The Lawyers expressed concern over the potential environmental impact of converting the Port Harcourt refinery into a blending plant. They expressed fear that this move could expose the people of the Niger Delta to harmful chemicals from environmental pollution and degradation caused by the waste products released into the environment.

    The statement read: “As we may all be aware, all is not well in the oil and gas sector in Nigeria. The level of corruption is suh that if urgent steps are not taken to address the malaise, Nigeria might go into extinction.

    “We say this with all sense of patriotism given the precarious situation in the economic outlook in the country. It is indeed worrisome that an oil-producing country like ours is experiencing an energy crisis occasioned by the non-functionality of our refineries and the continued dependence on the importation of petroleum products and the attendant cost implication for the country.

    “It is indeed a shame that successive administrations in the country have done little or nothing to ensure the functionality of the country’s refineries. For example, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains comatose.

    “This is on the heels that over 2 years ago, Mele Kyari the helmsman of the Nigerian National Petroleum Company Limited indeed promised that the Port Harcourt refinery would commence operations on several occasions. This has not happened and it has further plunged the country into an energy crisis.

    “The attendant impact on the socio-economic life in the Niger Dental region can only be imagined. A situation where oil-producing communities are made to purchase fuel at a rate higher than most parts of the country is an anomaly perpetuated by the Mele Kyari-led management of the NNPCL. This is indeed a sorry tale in our quest for sustainable growth and development.

    “Those behind this anomaly are indeed bent on further impoverishing the people of the Niger Delta region. The sin of the Niger Delta people as it stands with the present arrangement is that they are considered less important in the socioeconomic standing of the country even though it is an oil and gas producing region in the country, whereas citizens of the country in other parts of the country will be buying at a cheaper rate from Dangote refinery and paying far less for a better product without so many chemicals in it.

    “We wish to state that we have it on good authority that the Port Harcourt refinery is being packaged to become a blending plant where substandard petroleum products from Russia will be mixed with chemicals and sold to the Niger Delta people.

    “This is not only acceptable, it also shows a gross disdain for the Niger Delta people. Those in authority do not care about the negative impact of this plan on the livelihood of the Niger Delta people. The Niger Delta people would be subjected to untold hardship by paying more for petroleum products, and also the attendant consequence in other critical sectors of the Niger Delta economy.

    “The economic value chain around the operations of the Port Harcourt refinery would be greatly disrupted and bring about a regime of hopelessness and the resort to crime and criminality to make ends meet. Let us not forget that the level of crime and criminality of proportional to the economic standing of the people.

    “The move by the Mele Kyari led NNPCL to convert the Port Harcourt refinery into a blending plant for substandard petroleum products from Russia and other European destinations comes with the attendant health implications for the people of the region.

    “The people would indeed be exposed to harmful chemicals from environmental pollution and degradation from the waste products that would be released into the environment as a consequence.

    “The rot in the administration of the oil and gas sector in Nigeria is phenomenal. The Mele Kyari-led NNPCL has taken the lack of transparency and accountability to another height. The country has lost huge revenues to the activities of the cartel that is aided and abetted by the Mele Kyari-led NNPCL. We are tempted to say that the Niger Delta people have been slated for extinction.

    “The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the oil and Gas Sector frowns at such a disposition which is a dangerous trend that must be halted and addressed with a sense of urgency. The Niger Delta people are an important contributor to the revenue generation of the country and as such it must not be treated with disdain and levity.

    “We are therefore calling on the federal government to look into the plight of the Niger Delta people and do all that is necessary to improve the lot of the people through the entrenchment of transparency and accountability in the administration of the oil and gas sector in the country. The first step in this regard is to ensure the full functionality of the Port Harcourt refinery and other refineries in the country.

    “The second step is to institute reforms the administration of the oil and gas sector in the country with emphasis on the oil and gas-producing communities that are home to the major source of revenue for the country. The third step is to institute a probe into the administration of the oil and gas sector by the Mele Kyari-led NNPCL.

    “We are calling on the relevant authorities to urgently address the lingering issues in the oil and gas sector in Nigeria. The socioeconomic outlook of the country is worrisome and the country does not have the luxury of time as the situation in the country is getting grimmer by the day.

    “The time to act is now and it is our firm belief that the relevant authorities would act in the best interest of the Niger Delta people and the country at large.”

  • Reps Minority Caucus slams fuel pricing arrangement between NNPCL and Dangote Refinery

    Reps Minority Caucus slams fuel pricing arrangement between NNPCL and Dangote Refinery

    The Minority Caucus of the House of Representatives has condemned fuel pricing arrangement between the corporation and Dangote Refineries.

    This was contained in a statement signed by the caucus leader, Rep Kingsley Chinda on Tuesday.

    The caucus said: “The NNPCL Statement clearly indicated that the price of fuel has been set at an alarming N950 per litre in some parts of Nigeria, and an even more exorbitant N1000 per litre in other regions.

    “We find this pricing regime to be not only burdensome but utterly unacceptable, particularly in light of the fact that this fuel is refined locally.

    “The pricing of locally refined fuel should be significantly lower than imported fuel, as it lacks the incidental costs associated with landing charges, import duties, and other taxes.

    The caucus explained that: “Any fuel pricing regime that disregards these factors appears to be designed to unfairly exploit Nigerians, especially at a time when the average citizen is already grappling with severe economic challenges.

    “It is important to remind all stakeholders, especially NNPC Ltd and Dangote Refineries, that the primary responsibility of both public and private enterprises in the energy sector is to serve the Nigerian people, not to profiteer at their expense.

    “The current pricing arrangement, if allowed to persist, will only deepen the economic hardship experienced by millions of Nigerians and further undermine trust in the ability of local refineries to provide affordable solutions to the nation’s fuel needs.

    “We call on the relevant regulatory bodies, the executive, and all concerned stakeholders to urgently review this pricing framework to ensure that Nigerians are not subjected to unjust and unsustainable fuel prices.

    “The Caucus remains committed to safeguarding the welfare of the Nigerian people and will continue to engage all necessary actors to ensure fair pricing that reflects the true value of locally refined fuel.

  • BREAKING:  Dangote refinery! NNPCL releases new petrol pump price

    BREAKING:  Dangote refinery! NNPCL releases new petrol pump price

    The Nigerian National Petroleum Company Limited (NNPCL) has announced the estimated prices of Premium Motor Spirit (PMS), commonly known as petrol, to be sourced from the Dangote Refinery in September 2024.

    The released pricing estimates forecast what Nigerians can expect to pay at NNPCL retail stations across different country regions.

    In a statement issued on Monday via X by the Chief Corporate Communications Officer, Olufemi Soneye, NNPCL emphasised that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not regulated by the government but are the result of direct negotiations between parties.

    According to the statement, the estimated price of PMS in Lagos is expected to be around N950.22 per litre, while consumers in Borno State may pay as much as N1,019.22 per litre.

    Other states such as Sokoto, Kano, Kaduna, and the Federal Capital Territory (FCT) are projected to see prices around N999 per litre.

    Soneye also disclosed that NNPCL will pay Dangote Refinery in US dollars for the September 2024 PMS offtake, with Naira-denominated transactions set to commence on 1 October 2024.

    The company reassured Nigerians that in the event of any pricing disputes, NNPCL would pass on any discounts from Dangote Refinery directly to the public.

    The statement partly reads, “The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by Government but negotiated directly between parties on an arm’s length.

    “The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

    “The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.”

     

  • BREAKING: We stand by our earlier statement that Dangote Refinery Petrol is sold to us at N898 per litre- NNPCL insists

    BREAKING: We stand by our earlier statement that Dangote Refinery Petrol is sold to us at N898 per litre- NNPCL insists

    The Nigerian National Petroleum Company Limited says it stands that there are documents that Dangote Refinery Petrol is sold to them at N897 per liter.

    NNPCL spokesperson, Olufemi Soneye disclosed this exclusively to DAILY POST on Sunday.

    This comes after the Dangote Group in a statement by its spokesperson, Anthony Chiejina, on Sunday disagreed with NNPCL over its statement that Dangote Refinery Petrol was to them at N898 per litre.

    However, when DAILY POST contacted NNPCL on his reaction to Dangote Refinery’s statement, he said, he stood by his revelation.

    “We stand by our earlier stand that Dangote Refinery Petrol is sold to us at N898 per litre.

    “We have documents to back this point”

    The controversy comes after Dangote Refinery started loading its petrol on Sunday.

    NNPCL had confirmed that 70 trucks belonging to the state-owned firm loaded Dangote Petrol on Sunday.

  • We sold petrol to NNPCL in dollars’, Dangote denies N898 per litre claim

    We sold petrol to NNPCL in dollars’, Dangote denies N898 per litre claim

    Dangote Refinery has disclosed that it sold Premium Motor Spirit (PMS) to The Nigerian National Petroleum Company Limited (NNPCL) in dollars.

    Anthony Chiejina, Group Chief Branding and Communications Office of Dangote disclosed this in a statement on Sunday.

    Chiejina was reacting to the claim of NNPCL that it bought fuel from Dangote Refinery at N898 per litre.

    He said “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL.

    “This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.

    “We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.

    “It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature.

    “We assure Nigerians of availability of quality petroleum product and putting an end to the endemic fuel scarcity in the country.”

  • NNPCL commences lifting of petrol from Dangote refinery

    NNPCL commences lifting of petrol from Dangote refinery

    The Nigerian National Petroleum company limited has commenced loading of petrol from Dangote refinery in the ibeju Lekki Axis of Lagos.

    At the start of the process, ten trucks drove into gantries while their compartments were filled with the product from a computerized gadget.
    Equipped with 86 gantries making it possible to load 86 trucks simultaneously, the development now serves as a boost for the NNPC in the quest to make petroleum products available across the federation, while 40 gantries are dedicated for the discharge of petrol alone.

    Vice President of Dangote Industries limited Devakumar V. G. Edwin said the refinery has the capacity to discharge 54 million liters of petrol per day thereby saving the country foreign exchange.

    The number of trucks driving into the gantries keep increasing with the NNPC projecting hundreds in the coming days.

  • 300 NNPCL trucks arrive Dangote Refinery to lift petrol

    300 NNPCL trucks arrive Dangote Refinery to lift petrol

    The Nigerian National Petroleum Company Limited’s trucks arrived the Dangote Refinery complex on Saturday ahead of the scheduled lifting of Premium Motor Spirit (PMS) from the Dangote Refinery on Sunday.

    In total, 300 NNPC trucks will be ready to load petrol.

    Meanwhile, the Lagos State Government has deployed more traffic personnel to manage the expected surge in traffic along the Lekki-Ajah-Epe corridor.

    The NNPCL Chief Corporate Communications Officer, Olufemi Soneye, tweeted on Saturday: “NNPC Ltd. trucks are arriving at the Dangote Refinery in preparation for the scheduled petrol loading on Sunday, September 15, 2024.

    “By the end of today, at least 300 trucks will be stationed at the refinery’s fuel loading gantry.”

    Earlier, NNPCL made same announcement.

    It posted that “In preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Ltd. has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki.

    “As of Saturday afternoon, NNPC Ltd. had deployed over 100 trucks, with hundreds more en route.”

    The Federal Government had initially announced the commencement of lifting of premium motor spirit (PMS) otherwise known as Petroleum from the Dangote Refinery.

    After some back and forth, it was subsequently agreed that NNPCL would be the initial sole buyer of Dangote PMS for onward distribution to other marketers.

    Meanwhile following concerns over the expected traffic snarls in the Ibeju-Lekki corridor, the Lagos State Government said it has put in place a comprehensive strategy to manage the traffic gridlock.

    The government stated that “a total package of comprehensive traffic management strategy” would be implemented to guarantee uninterrupted traffic flow along Lekki-Ajah corridor.

    The Special Adviser to the Governor on Transportation Hon. Sola Giwa, confirmed on Saturday that the Lagos State Traffic Management Authority had been fortified with state-of-the-art equipment and trained personnel to be strategically deployed to oversee and regulate traffic flow within the affected areas.

    Giwa reassured residents and commuters in the Lekki-Ajah vicinity that thorough preparations have been made, urging them to remain calm and confident in the state government’s capabilities.

    This was contained in the statement by Director, Public Affairs and Enlightenment Department, LASTMA, Adebayo Taofiq.

    The statement stated that in collaboration with relevant stakeholders, LASTMA has mobilized advanced tow trucks and emergency response equipment to promptly address anticipated potential traffic disruptions.

    “Medical ambulance services are also on high alert to ensure rapid response in emergency situations,” the LASTMA spokesperson added.

    “As the Dangote Refinery commences operations, Hon. Giwa emphasized the imperative of strict adherence to traffic regulations by tanker operators, particularly during loading and navigation within the Lekki-Ajah axis. The state government will rigorously enforce these regulations to avert traffic disruptions and ensure seamless vehicular movement.

    “The Lagos State Government reaffirms its commitment to safeguarding citizens’ welfare and maintaining orderly traffic during this pivotal period of industrial activity.

    “All motoring public particularly commercial bus operators including mini-bus drivers are hereby cautioned to comply with traffic laws, refraining from picking up or dropping passengers at undesignated bus stops, avoiding driving against traffic (One-way drive) and observing all road signs including traffic signals, among other regulations. Adherence to these regulations will ensure a harmonious and efficient transportation system.”

  • Dangote refinery: No guarantee of lower fuel prices — NNPCL

    Dangote refinery: No guarantee of lower fuel prices — NNPCL

    The Nigeria National Petroleum Company Ltd (NNPCL) said that the start of petrol lifting from the Dangote Refinery does not guarantee a reduction in fuel prices.

    According to Olufemi Soneye, the Chief Corporate Communications Officer for NNPCL, started that global market forces influence the pricing of petroleum products from any refinery, including Dangote Refinery Ltd.

    Soneye emphasized that domestic refining of petrol does not necessarily lead to lower prices. He addressed concerns arising from recent claims about NNPCL’s intentions regarding the Dangote Refinery.

    The company’s statement comes in response to a press release from the Muslim Rights Concern (MURIC). MURIC alleged that NNPCL’s actions are undermining the Dangote Refinery,

    Soneye reassured that the pricing structure remains subject to global market dynamics, and refuted claims of NNPCL’s exclusive control over the Dangote Refinery’s output.

  • Reps committee urge FG, NNPCL to revert to old PMS price

    Reps committee urge FG, NNPCL to revert to old PMS price

    The House of Representatives Committee on Petroleum Resources (Upstream) has demanded the reversal of fuel to old price, urging the Federal Government and the Nigerian National Petroleum Company Ltd.  (NNPCL) to comply.

    Rep. Alhassan Ado-Doguwa, the Chairman of the committee in a statement in Abuja, described the hike in petrol as unacceptable.

    He said that a situation where private companies took advantage of gaps in the system to make arbitrary profits at the expense of Nigerians was inimical to the country’s progress.

    “We urge the Federal Government and, of course, the NNPCL to consider the plight of Nigerians and suspend this recent increase in pump price.”

    According to him, Nigerians are currently going through a lot of challenges, and adding to the burden is not in our collective best interest.

    “Let us revert to the old pump price as soon as possible and probably intensify engagements with major stakeholders to address the problem,” he said.

    Doguwa, who is also the Chairman, Special Committee on Crude Oil Theft and Vandalisation of Pipelines, also pledged to tackle the challenge caused by the loss of revenue to the government owing to the loss of crude.

    “As a special committee, we will aggressively seek modalities to interface with the youths and community leaders in the oil-producing areas.”

    This, according to him, is to address the frequent cases of crude oil theft, which is  capable of affecting petrol supply across the country.

    “We are working in collaboration with security agencies in their quest to secure oil pipelines and other critical facilities in the country.

    “We believe that a return to the old pump price will calm frayed nerves, thus enabling Nigerians to go about their daily activities with ease,” he noted.

    The lawmaker also advised Nigerians to give the President Bola Tinubu-led administration a chance to reposition the oil and gas sector.

    He stated that with the Petroleum Industry Act, coupled with the effort to revive the nation’s refineries, Nigeria would in no distant time,  reap the benefits of her oil and gas endowments.

    “We believe that with interventions the government is making to commence operations at Port Harcourt and Warri refineries, these challenges will come to an end,” he said.

    NAN reports that the NNPC Ltd had on Tuesday directed its fuel sales outlets to increase their pump prices from the average of N617 to N897, a development which has almost immediately spiked prices, including market commodities and transportation.