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Tag: PMS

  • How Nigeria imported 20.30bn litres of petrol in 2023

    How Nigeria imported 20.30bn litres of petrol in 2023

    The National Bureau of Statistics (NBS) says 20.30 billion litres of Premium Motor Spirit (PMS) also known as petrol was imported in 2023.

    The NBS stated this in its Petroleum Products Distribution Statistics for 2023 released in Abuja on Tuesday.

    The report said the figure of 20.30 billion litres of PMS reported in 2023 amounted to a decrease of 13.77 per cent compared to the 23.54 billion litres recorded in 2022.

    For Automotive Gas Oil (AGO) also known as diesel, the report said that 4.94 billion litres were imported in 2023.

    “This indicated a 23. 66 per cent increase compared to the 4.00 billion litres recorded in 2022.”

    The report noted that PMS truck out stood at 20.22 billion litres in 2023, indicating a 16.96 per cent decrease when compared to 24.35 billion litres recorded in 2022.

    It said 69.71 million litres of Household Kerosene (HHK) were locally produced in 2023 compared to 44.68 million litres in 2022.

    “The figure indicates a growth rate of 56.02 per cent over the period.”

    For diesel, the report showed that 109.39 million litres were locally produced in 2023, indicating an increase of 6.76 per cent compared to the 102.47 million litres recorded in 2022.

  • Dangote Refinery begins distribution of PMS Sunday – FG

    Dangote Refinery begins distribution of PMS Sunday – FG

    The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Dangote Refinery will begin the distribution of Premium Motor Spirit (PMS) on Sunday.

    Edun, who was represented by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, said this at a news conference in Abuja on Friday.

    “I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, Sept. 15.

    “From Oct. 1, NNPC Ltd. will commence the supply of about 385kbpd of crude oil to the Dangote Refinery, to be paid for in Naira. In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, to be paid in Naira.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

    Edun said that all associated regulatory costs (NPA, NIMASA, etc.) would also be paid for in Naira.

    “We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA). Lagos.

    “The technical committee that worked to flesh out this initiative will transition to an implementation execution and monitoring committee that will be working out of Lagos for the next three to six months,” he said.

    Edun recalled that the Federal Executive Council (FEC) , under the leadership of President Bola Tinubu, approved the sale of crude oil to local refineries in Naira and corresponding purchase of petroleum products in Naira

    He said that the initiative would help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country.

    The minister said that the implementation committee chaired by him, and the other technical committee had worked intensely with NNPCL and Dangote Refinery, to fashion out the details of the modalities for the implementation of FEC approval.

    “We would sincerely like to thank President Tinubu for championing this novel initiative and assure him that he can count on us to implement his vision.

    “I will also like to thank everyone for the hardwork and patriotism exhibited over the last couple of weeks,” he said.

    NAN reports that Edun chaired the presidential committee on the sales of crude oil and refined products for domestic consumption in Naira.

  • Dangote makes fresh revelation on contract with NNPC

    Dangote makes fresh revelation on contract with NNPC

    Dangote Group has disclosed that it is yet to finalise contract with the Nigerian National Petroleum Company (NNPC) Limited in order to commence lifting of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery.

    TheNewsGuru.com (TNG) reports Dangote Group had earlier disclosed that petrol from the Dangote Refinery will be out in filling stations across the country in less than 48 hours and that it was awaiting a nod from NNPC Limited to roll out the product.

    However, with the new disclosure that the contract to lift petrol is yet to be finalised, it, therefore, means there might be delay in the roll out of petrol from the refinery as Dangote has also refuted claims that it has fixed the price of petrol at N897 per litre.

    Anthony Chiejina, Dangote Group Chief Branding and Communications Officer, who made this known in a statement dated 4 September 2024, stressed that the responsibility to fix the price of petrol falls under the purview of relevant government authorities.

    While assuring that the product will be readily available all over the country, Dangote also refuted claims that the NNPC has commenced lifting petrol from the refinery.

    The statement reads: “Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per lite” published in the BusinessDay Newspapers of Wednesday, 4 September 2024.

    “We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.

    “Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.

    “The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities.

    “We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter. We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country”.

    Meanwhile, NNPC Limited had opened up on when Dangote petrol will be available, while also revealing that it would be shipping fresh cargoes of crude oil to the refinery as part of the federal government’s push to drive local production of petroleum products.

  • Why fuel queues persist – PENGASSAN

    Why fuel queues persist – PENGASSAN

    The Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has identified reasons for persistent queues in filling stations across the country.

    Mr Festus Osifo, President of PENGASSAN, who disclosed the reasons while speaking at the ongoing 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja, identified weak and outdated distribution chains as some of the reasons for the queues.

    “The distribution chain is weak in the downstream sector of the oil and gas industry. That is why today, you see queues in most of the stations. The problem may be solved today, but tomorrow it will resurface.

    “Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population. There is no country in the world as big as Nigeria, with our population, that relies on a single point of product importation and uses trucks to distribute across the nation,” he said.

    Osifo also attributed insufficient supply of fuel across the filling stations in the country to bad roads and flooding, leading to scarcity. The  (PENGASSAN) President called for urgent reforms to address the challenge.

    He also called on the government to develop and strengthen the country’s value chain to ensure a more efficient and reliable distribution system. Osifo noted that without the improvements, the country would continue to face recurring fuel shortages.

    He said, other challenges I  the sector included, high cost of local production, which according to him, is 15 per cent to 20 per cent higher than in other parts of the world. He said the high production cost is partly due to the burden of security in the oil and gas companies.

    He urged the government to take over the security responsibilities from investors, to, significantly, reduce production costs. He also called on the government to strengthen laws and sanctions against those involved in oil theft. Osifo advocated harsher penalties to deter bad behaviours and encourage integrity within the industry.

  • NMDPRA fumes over peddling of petrol in jerry cans

    NMDPRA fumes over peddling of petrol in jerry cans

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will clamp down and withdraw the licence of erring marketers aiding peddling of petroleum products particularly Premium Motor Spirit in jerry cans.

    The NMDPRA made this known on Friday after an indoor stakeholders’ meeting involving major retail outlet managers in the Federal Capital Territory (FCT).

    The meeting was aimed at reiterating the authority’s standing regulations against illegal peddling of petroleum products particularly PMS in jerry cans.

    Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, said marketers were warned that henceforth the authority would ensure strict compliance.

    Ukoha said it would increase its surveillance monitoring routine and clampdown on erring marketers found aiding and abetting this practice by suspending their retail licences.

    “The authority is taking this decisive step to safeguard lives and properties of Nigerians that are usually at risk of fire outbreaks through improper handling of the volatile and highly flammable product.

    “The authority is also mindful of the nefarious practices of cross border smuggling of the products with the use of jerry cans and must tackle such,’’ he said.

    A team led by the executive directors of NMDPRA, Ukoha and Dr Mustapha Larmode in collaboration with security agencies also conducted surveillance to some outlets around the metropolis.

    In the process, the team discovered a couple of illegal fuel dumps and depots around the FCT.

    The perpetrators were arrested and subsequently handed over to the Department of State Security for prosecution.

  • Increased landing cost of petrol may trigger price hike – Experts

    Increased landing cost of petrol may trigger price hike – Experts

    An energy expert, Mr Henry Adigun has raised concerns about the continuous increase in the landing cost of petrol, stressing that it may lead to an adjustment of pump prices by marketers.

    TheNewsGuru.com (TNG) reports Adigun expressed the concerns during a roundtable discussion with the media on Wednesday in Lagos State.

    The roundtable has the theme, “The Midstream and Downstream Petroleum Industry in Nigeria: The Roles of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Ensuring Energy Security”.

    Adigun cautioned that expectations for lower prices of refined products from the Dangote Refinery might not be realised.

    He explained that the cost of crude oil, whether supplied domestically or in local currency, would still be priced according to international benchmarks.

    “As of July 31, 2024, the landing cost of petrol stands at N1,100 per litre, excluding the additional costs of transporting the product to retail outlets,” Adigun noted.

    The lower prices from Dangote Refinery was not feasible, given the quality of its products and particularly because crude oil prices are aligned with international market rates.

    He further explained that the Nigerian National Petroleum Company Ltd. (NNPCL) would not sell crude below production costs, which align with the international best practices.

    Adigun also warned about the ongoing petrol subsidy, which has rendered the market uncompetitive and led to disruptive supply arrangements.

    He called for a comprehensive review of fiscal policies to promote competition and establish a robust regulatory environment.

    Another industry expert, Mr Taiwo Ogunleye, emphasised the critical role of petroleum in the global economy and the modern energy system.

    He highlighted that petroleum was integral to various aspects of daily life, from fueling vehicles and generating electricity to producing numerous everyday products.

    Ogunleye explained that the petroleum industry encompasses a range of commercial activities, from the exploration of reserves to the sale of final products to consumers.

    He stressed the importance of regulatory frameworks in ensuring efficiency and transparency across the industry’s value chain.

    Citing a report by the Oil, Gas, and Mining Policy Division of the World Bank, Ogunleye noted that inadequate regulation and enforcement could hinder fuel supply efficiency.

  • ‘NNPCL should buy PMS at Dangote refinery and sell to us at discounted rate’ – Oil marketers

    ‘NNPCL should buy PMS at Dangote refinery and sell to us at discounted rate’ – Oil marketers

    The marketers in the downstream sectors have declared that they cannot afford to buy Premium Motor Spirit, popularly called petrol, from the Dangote Petroleum Refinery and sell at the prevalent pump prices at filling stations in Nigeria except the Nigerian National Petroleum Company Limited (NNPCL).
    The Deputy National President of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, told newsmen that no dealer in Nigeria would be able to buy the petrol from the Dangote refinery.
    He posited that the product would be priced at the international market rate, far higher than the domestic cost at the pumps.
    When asked whether oil marketers had been briefed about the price of petrol from the Dangote refinery, he gave a negative reply.
    He, however, stressed that PMS, from the plant, would be sold at the international market rate, adding that no marketer would want to pay such price currently.
    He said: “There has been no official communication from them yet on pricing for petrol. However, one thing I want you to understand is that even if the Dangote refinery starts to release products, particularly PMS, no marketer can be able to buy the product from him.
    “This is because the refinery is an independent commercial entity and they must recoup their cost of refining and add some margin before they sell out the product. The current price of the product within the country is below the international price of a litre of PMS.
    “So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre.”
    The IPMAN official, however, noted that for Nigeria to have Dangote petrol across its filling stations, the NNPC would have to intervene by purchasing the product and reselling it to dealers at discounted rates.
    “NNPC may have to offtake the product, just like they are importing from other countries for upward supply to Nigerian marketers, I think only the national oil company can offtake PMS from them and know how best they can continue to supply it to marketers to sell at the approved current price.
    “If it is not done this way, no marketer will be able to buy the product and sell it at a loss of over N400 to N500/litre. It is not possible” Mustapha stated.
    It was gathered  that the landing cost of petrol was N1,117/litre as of July 16, 2024, according to data released by the Major Energies Marketers Association of Nigeria, (MEMAN)
    The association had also revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre, at the time.
    The N1,117 landing cost of petrol is far above the pump price of the product in Nigeria. Currently, the pump price of petrol is between N660/litre and N800/litre, depending on the area of purchase.
    When contacted and asked whether major marketers would be able to buy petrol from the Dangote refinery, the Executive Secretary, MEMAN, Clement Isong, said his group had earlier published the landing cost of PMS, adding that this was the realistic cost of the product.
    “You have seen the price we published which is the realistic cost, and you know the cost at the pumps today, and Dangote refinery is a business entity that will not want to make losses. So that is all I will say,” he stated.
    NNPC is currently the sole importer of petrol into Nigeria. Other marketers stopped importing the product due to their inability to access the United States dollar required for PMS imports. NNPC had yet to respond to enquiries on the matter when contacted, up till when this report was filed.
  • Disaster averted as truck carrying petrol overturns in Lagos

    Disaster averted as truck carrying petrol overturns in Lagos

    The Lagos State Traffic Management Authority (LASTMA) has successfully averted a potential disaster after a truck carrying Premium Motor Spirit (PMS) overturned at the Ojota ramp interchange linking the toll gate.

    Its General Manager, Mr Olalekan Bakare-Oki, in a statement on Thursday in Lagos, added that LASTMA worked in collaboration with other emergency responders.

    The statement was signed by Mr Taofiq Adebayo, Director, Public Affairs and Enlightenment Department of LASTMA.

    Bakare-Oki noted that the incident occurred around 2.00 p.m. when a truck transporting PMS lost control and fell, spilling its highly flammable content onto the road.

    “Recognising the immediate danger posed by the situation, LASTMA officers promptly arrived at the scene to manage traffic and secure the area.

    “Their swift action prevented any ignition sources from coming into contact with the spilled fuel, which could have led to a major explosion.

    “Emergency responders, including the Lagos State Fire Service, the LASEMA Response Unit (LRU), Police men from Alapere Police Station and officials of N.N.P.C quickly joined LASTMA at the site,” he said.

    The LASTMA boss said that their coordinated efforts ensured that the spillage was contained and the risk to lives and property minimised.

    “LASTMA personnel efficiently diverted traffic from the danger zone preventing congestion and ensuring that no pedestrians were exposed to the hazardous spill,” he said.

    He said that the area was immediately cordoned off to prevent any unauthorised access, while the Lagos State Fire Service and other emergency responders teams deployed specialised equipment to contain the spill.

    He pointed out that the head of the fallen truck was safely uprighted and towed away and the road was thoroughly cleaned to eliminate any residual risks.

    Bakare-Oki commended the swift and coordinated efforts of all the agencies involved.

    “This incident underscores the importance of our emergency response protocols and the dedication of our officers and partners. We are committed to ensuring the safety and well-being of all Lagosians,” he said.

    The general manager, however, urged all drivers to exercise caution, especially when transporting hazardous materials, and to adhere strictly to safety regulations to prevent such incidents in the future.

    Please call Lastma newly inaugurated toll free hotline 080000527862 in case of any information about traffic management and control across the state.

  • Dangote refinery to begin petrol production, distribution in July

    Dangote refinery to begin petrol production, distribution in July

    The Dangote refinery has said that  premium motor spirit ( PMS) petrol production and distribution will officially begin in July 2024.

    Initially, the refinery said it was going to start production in June but due to logistics issues it has been shifted till July.

    The President of Dangote Group, Aliko Dangote told newsmen during a tour of the facility with Governor Babajide Sanwo-olu of Lagos State on Sunday that the petrol from the 650,000 barrels per day capacity refinery would be out in July.

    Dangote said this was due to some minor challenges, stating that the product would be out by July 10 to 15.

    “We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in the tank to make sure that it settles. So by the third week of July, we’ll be able to come out to take it into the market,” Dangote had said.

    Reacting to the update from Dangote, some Nigerians held different views on what could have been the reason for the recurrent postponement.

    A Facebook user, Anthony Ihenyen, said it was not easy to have such a huge investment.

    “You are trying, sir, and it will fly. We need more people like you to do more here in Nigeria, not abroad. Nobody is a saint.

  • When petrol will start selling for N300/litre – CORAN

    When petrol will start selling for N300/litre – CORAN

    Speculations are rife that the pump price of Premium Motor Spirit, popularly called petrol will drop to N300/litre by the time Dangote Petroleum Refinery begins refining crude oil in the country.

    Dangote Petroleum Refinery and other indigenous producers, operators of modular refineries stated on Sunday.

    They also pointed out that this would be achieve when the government ensures the provision of adequate crude oil to local refiners, stressing that refineries abroad were ripping off Nigeria.

    Speaking under the aegis of the Crude Oil Refinery Owners Association of Nigeria, they explained that what happened to the cost of diesel after Dangote started producing it, would happen to petrol price once it is being produced massively in Nigeria.

    CORAN is a registered association of modular and conventional refinery companies in Nigeria.

    “A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,” the Publicity Secretary, CORAN, Eche Idoko, stated.

    “if we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure that we should be able to buy PMS at N300/litre as the pump price.

    “Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

    When told that there are arguments that it is not possible to have such a drop in price because crude oil, the raw material for PMS, is price in dollars, the CORAN official insisted that petrol price would crash once it is being produced massively by indigenous refiners.

    He said, “We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?

    As I speak to you now there is every tendency that before December diesel price will drop further. The only reason reason why diesel is not doing below N1,000/litre is because of our exchange rate.

    “If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”

    On May 18, 2024, The PUNCH reported that Africa’s richest man, Aliko Dangote, stated that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting June this year.

    Dangote had also stated that his refinery could meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand. He spoke at the Africa CEO Forum Annual Summit in Kigali, expressing optimism about transforming Africa’s energy landscape.

    “Right now, Nigeria has no cause to import anything apart from gasoline (petrol) and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” the billionaire had declared.

    Also, Dangote had earlier in the year crashed the pump price of diesel to N1,200/litre when the commodity was selling at between N1,700 and N1,800/litre at the time.

    He further dropped the price to below N1,000/litre, but could not sustain this price due to the rise in exchange rate. The refinery eventually returned the price to the initial rate of N1,200/litre.

    Speaking on Sunday, the CORAN spokesperson stated that this was why the modular refiners had been calling for the sale of crude oil at the naira equivalent of the dollar rate.

    “We have told them (government) that even the dollars that you are asking us to use and buy this product, it is detrimental to the country. Strengthen the naira. We will buy at the international market rate, but at a naira equivalent.

    “These are the issues and they know these things but we can’t explain why they really can’t take decisions to change these concerns.

    “Get crude to local refineries, allow crude purchase in naira equivalent, make the environment business-friendly and watch locally produced petroleum product prices crash,” Idoko stated.

    He added that Nigeria currently has 25 licensed modular refineries. Five of them are operating and producing diesel, kerosene, black oil and naphtha. About 10 are under various stages of completion, while the others have received licences to establish.