Tag: Petrol Price

  • Bayelsa pegs petrol price at N230 per litre from N300 per litre

    Bayelsa pegs petrol price at N230 per litre from N300 per litre

    As fuel scarcity continued unabated nationwide, Bayelsa has directed that no fuel station should sell petrol above N230 per litre as against the national price of N165 per litre.

    Inaugurating a monitoring team on the pricing and distribution of petroleum products in the state, the deputy governor, Mr Lawrence Ewhrudjakpo, also directed that no consumer should get more than 25 litres in a jerrycan.

    The directives, he said, would be in force until normalcy returned to petroleum products distribution and supply.

    Ewhrudjakpo assured that government was taking every necessary step to end the scarcity speedily.

    The deputy governor noted that Bayelsa had the least allocation of petrol from the NNPC.

    He argued that making Bayelsa to pay the same amount for fuel subsidy as states with lion share of allocation of petrol amounted to robbing Peter to pay Paul.

    He urged the Federal Government to stop the perceived injustice by ensuring that each state paid for fuel subsidy based on the volume of petrol consumed, or number of trucks allocated to it every month.

    Ewhrudjakpo said Bayelsa would examine the possibility of establishing a fuel depot as its unavailability badly affected fuel, supply in the state.

    Also speaking, the Chairman of the Bayelsa State Petroleum Taskforce, Mr Richman Samuel, said through effective negotiation, fuel price was brought down from N300 per litre to N230 per litre in the wake of the current scarcity.

    He appealed to marketers to maintain the negotiated price.

    Samuel said the taskforce had been working round the clock in collaboration with other relevant stakeholders to ensure that the situation was brought under control.

    In his remarks, the Chairman of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr Dukumor Taremi-West, assured that marketers would not take undue advantage of consumers.

    He stressed the need for relevant agencies to query the alleged whereabouts of two truckloads of petrol allocated to the NNPC Floating Station at Nembe, not long ago.

    Earlier, the Operations Controller of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Bayelsa Field office, Mr Ogbe Nicholas, urged the public not to panic as there was enough petrol around the corner.

    He said the Bayelsa Field Office had already placed an order for 10 trucks of petrol from the Warri and Port Harcourt depots.

    Ogbe noted that the absence of a depot in Bayelsa adversely affected supply of fuel and left the state at the mercy of oil marketers.

    The monitoring team is made up of men of the Bayelsa Petroleum Taskforce, the Bayelsa Field Office of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and the Independent Petroleum Marketers Association of Nigeria.

    It also has men of the Nigerian Security and Civil Defence Corps, those of the Department of State Services, as well as the Petroleum Products Retail Outlets Owners Association of Nigeria as members.

  • Petrol price negotiation still ongoing – NNPC

    Petrol price negotiation still ongoing – NNPC

    The Nigerian National Petroleum Corporation (NNPC) yesterday said state governors do not run the affairs of the corporation, stressing that negotiation to determine a new pump price of petrol was still ongoing between the organised labour and the Federal Government.

    It added that there was no official announcement of any price hike for the product.

    Kaduna State Governor, Mallam Nasir el-Rufai was yesterday quoted as saying that there was a recommendation from the Nigeria Governors’ Forum that petrol should sell for between N380 to N408 per litre.

    The recommendation was a request for the complete removal of the subsidy on petrol.

    With the removal, the product would be at the mercy of demand and supply.

    But the NNPC, Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, told The Nation on phone that it was not the responsibility of state governors to run the corporation.

    “I can’t react to that. You know how the thing runs: it is not the state governments that will determine what we do in our Corporation. It is a government (Federal) thing.

    “And as far as I am concerned, negotiation is ongoing; so when it is communicated to the appropriate quarters. That is when we will respond. For now we don’t have any official communication,” he said during a telephone interview.

    He assured the general public that the recommendations of N408 per litre would not lead to any scarcity of petrol.

    According to him, NNPC had petrol stock sufficiency of 40 days.

    “Our plan is always to have over 40 days of sufficiency” he said, stressing that fuel was available in abundance.

  • Labour tackles FG over fresh move to increase fuel price

    Labour tackles FG over fresh move to increase fuel price

    The Organised Labour has criticised the federal government over its fresh move to increase petrol pump price following the rise of crude oil price above $60 per barrel in the international market.

    Timipre Sylva, the minister of State for Petroleum Resources, on Tuesday at the official launch of Nigerian Upstream Cost Optimisation Programme, urged Nigerians to be ready to bear the pains of the proposed hike.

    The minister said with no provision of subsidy in the 2021 budget, Nigerian National Petroleum Corporation (NNPC), cannot continue to bear the cost of under-recovery.

    But reacting to the admonition, President of TUC, Quadri Olaleye, wondered why the government is always in rush to increase fuel price any time there is a rise of crude oil at the international market.

    According to him, the government never for once deemed it fit to bring down the price of petrol when there is a fall in price of crude oil in the international market.

    “Why is it that the government is always in a hurry to implement an increase any time crude oil price rises in the international market? Last time when the price went down in the market, Nigerian government didn’t reduce the price of PMS.

    “Why are they now rushing to increase it? They need to be intelligent with it if they want more problems in this country. Besides, we are still expecting the report of the technical committee set up last time by February 22. So, why the rush?” Olaleye queried.

    The union leader said the organised labour would not disclose its strategies on how to fight the government this time around if it tries to inflict more pains on Nigerians the way it had been doing through some of its anti-masses policies including increment of price of fuel.

    Several calls to the mobile phones of President and Secretary of Nigeria Labour Congress (NLC), Ayuba Wabba and Emmanuel Ugboaja respectively, were not answered neither did they respond to a text message from our correspondent.

  • Increment: We no longer regulate petrol price – FG

    Increment: We no longer regulate petrol price – FG

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, has reiterated the Federal Government is no longer fixing the pump price of petroleum products in the country.

    Sylva made this known while briefing newsmen on the increase in the pump price of Premium Motor Spirt (PMS), also known as petrol.

    The Petroleum Products Marketing Company (PPMC) had on Wednesday announced a new Ex-depot price of N151.56 for petrol.

    Ex-depot price is the price marketers buy products from depot owners.

    An increase or decrease in ex-depot price has effect on the pump price of petrol.

    “Government is no longer in the business of fixing prices for petroleum products, we have stepped back.

    “Our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering,” he said.

    Sylva said it was unfortunate that people were blaming government, noting that the deregulation of the sector was imperative for the economy.

    He said it was also a consensus among stakeholders for such strong policy direction.

    According to him, the well-being of Nigeria remains paramount to government.

    “You all know that that President Muhammadu Buhari aligns with ordinary Nigerians, especially the poor.

    “Left for him, he will never allow increase in pump price; for this to happen, it means that it is an inevitable decision.

    “COVID-19 took the price of crude oil to zero zone,” the minister said.

    He said that government cannot fund subsidy, hence would not adopt that as an option, noting that current happenings were for the economic survival of the country.

    Sylva said that government had cut crude production from two million barrels to 1.412 million barrels per day.

    This, he said, was affecting revenue generation in the country.

    He said that it was unfortunate the deregulation of the sector was politicised, urging Nigerians not to listen to any advocacy for subsidy payment.

    “Deregulation will definitely come with few pains, but survival of the country is paramount,” he said.

  • Just in: FG reduces petrol pump price to N121.50

    Just in: FG reduces petrol pump price to N121.50

    The Petroleum Products Pricing Regulatory Agency has announced a new pump price band of N121.50 from N123.50 per litre for Premium Motor Spirit, also known as petrol.

    The PPPRA, which is an agency of the Federal Government, disclosed this in a circular to fuel marketers dated May 31, 2020.

    The sharp drop in crude oil prices on the back of the spread of coronavirus saw the landing cost of petrol hitting a record low in March, wiping off subsidy on the product.

    The pump price of petrol, which is still being regulated by the Federal Government, was reduced to N125 per litre from N145 per litre on March 18, 2020, effective March 19.

  • No plans to increase petrol price above N145, NNPC assures Nigerians

    No plans to increase petrol price above N145, NNPC assures Nigerians

    The Nigerian National Petroleum Corporation (NNPC) has reiterated that it has no plans to increase the pump price of petrol.

    NNPC made the denial in a statement by Mr Ndu ughamadu, its Group General Manager, Group Public Affairs Division.

    The statement explained that the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre would not lead to an increase in the pump price.

    There is no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

    The rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same templat.”

    Bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country.

    Lightering expenses involve charges for moving products to depot area from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

    What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders.

    So what the Petroleum Products Pricing Regulatory Agency, PPPRA, did was to take N1 from lightering expenses and add same to the bridging allowance.

    That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ it said.

    On the product supply, thr statement said as at Wednesday, the country had 1.3 billion litres of petrol which translated to an inventory of 36 days.

    What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days.’’

    It noted that the supply availability was bolstered with the production of petrol from the three refineries in Port Harcourt, Warri and Kaduna.

    There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries.

    ”We have informed the Department of Petroleum Resources to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

    It reiterated the readiness of the NNPC Management, under the leadership of Dr Maikanti Baru, to sustain the existing cordial relations among the NNPC, the leadership of the downstream industry unions and other stakeholders.

    It also said the DPR had been alerted to sanction fuel station owners who engageD in hoarding or charged consumers above the approved pump price of petrol.

    TheNewsGuru.com reports that there had been fears that the pump price of petrol would increase following the increase in bridging costs to appease tanker drivers who went on strike to demand better working conditions.