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Tag: PMS

  • Fuel scarcity: Apprehension as IPMAN embarks on warning strike

    Fuel scarcity: Apprehension as IPMAN embarks on warning strike

    The scourge of fuel scarcity is looming once again as members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have begun a three-day warning strike in nine Northern States of Nigeria.

    TheNewsGuru.com (TNG) reports that the IPMAN members began the three-day warning strike on Monday to protest the non-payment of their outstanding haulage claims.

    IPMAN’s spokesman in Borno State, Alhaji Abdulkadir Musa disclosed that the warning strike was in compliance with a resolution reached by IPMAN branches in the nine States in the northern part of the country.

    Members in the affected states were being owed more than N70 billion since 2019, according to the IPMAN’s spokesman.

    He added that members would meet on Wednesday at the expiration of the warning strike to take a decision on the next line of action.

    “We members of IPMAN have decided to embark on a three-day withdrawal of services at depots as warning action.

    “For years, we have been following and lobbying the management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding our unsettled haulage claims to no avail.

    “Note that since our agitation began only less than 5 per cent of our claims have been settled. No payment has been made with regards to claims submitted between 2019 and 2021,’’ Musa said.

    He added that payment for haulage of petroleum products must henceforth be made within one month.

    “Failure to do so will lead to indefinite suspension of our services in all depots and filling stations across the northern parts of the country,’’ Musa warned.

  • OGUN: 10 houses, two churches and eight shops razed as fuel tanker explodes

    OGUN: 10 houses, two churches and eight shops razed as fuel tanker explodes

    A fire incident has razed at least 10 residential houses, two churches and eight shops after a fuel tanker loaded with 45,000 litres of Premium Motor Spirit (PMS) otherwise called petrol on Saturday fell and exploded at Olambe along Matogun road in the Ifo Local Government Area of Ogun State.

     

    It was gathered that the tanker content spilled leading to an inferno that engulfed the area.

     

    According to eyewitnesses, before the unmarked tanker fell, some of its content had spilled on the road.

     

    They added that the driver, who is now at large, could not control the vehicle before it later fell on the road.

     

    Some youths assisted in putting out the fire upon the arrival of fire-fighters from the state Fire Service. The explosion destroyed 10 residential houses, two churches and eight shops.

     

    Residents and business owners in the area were seen in tears as their belongings went up in flames.

    OGUN: 10 houses, two churches and eight shops razed as fuel tanker explodes

     

    The Lagos Territorial Coordinator, National Emergency Management Agency, Ibrahim Farinloye, in a statement earlier on the incident, said that the tanker fell and spilled its contents and exploded around 7am in the area. He added that no life was lost and no one sustained an injury, noting that about 10 buildings were destroyed in the incident.

     

    Farinloye said, “The situation was mitigated with most of the content spilling into the canal close to the scene, thereby saving the community from serious incidents that could have affected people. The fire has been put out.”

     

    It was gathered that items such as phones, documents, freezers, a generator, tyres, and food items among others were lost in the incident.

     

    Some of the affected victims spoke to TheNewsGuru.com in tears.

     

    The manager of a hotel affected in the area, Peter Friday, said that the incident came as a shock to the entire community, adding that he was busy with sales when the incident occurred and he quickly moved their guests to a safer place outside the hotel.

     

    He stated, “I sat inside the bar when the incident happened. I saw flames of fire from where I was and I quickly rushed out to call our guests inside the room for them to move out before the fire could penetrate. Four rooms, the main bar, and many things as you can see were affected. We have broken ceilings, mattresses, 50 pieces of burnt chairs, a generator, one reservoir and many other things that got destroyed.

     

    “I want the government to look into this and help us with the structures and losses. I think the incident was caused by the bad road. I feel bad because if the road had been fixed, this incident would have been averted. But we thank God that our guests are in a safe place now.’’

     

    A trader, Dupe Afeni, who was distraught, said she just stocked her shop two days before the incident.

     

    “I don’t know where to start from exactly. I went to the market and stocked my shop two days ago but everything has burnt down. I borrowed money to do business but see the outcome. I don’t know what to do anymore, “she lamented.

     

    Another victim, Sodiq Akeem who is a tyre repairer, lamented that his tools were burnt, adding that he was still bothered about the situation.

     

    “I received a call from my apprentice that a tanker was burning. I didn’t know it affected my shop until I came back there. The fire burnt down my engine, 10 yres, money contributed by association and other things. I tried to call a woman who sold food items beside my shop because I kept some of my tools and clothes there. I noticed that everything inside the shop has been gutted by fire.’’

     

    A landlord in the area, Gbenga Olawumi, stated that his four shops, a reservoir and a church were burnt to ashes.

     

    Olawumi added, “The tanker lost balance while moving on the bad road. The driver was about to turn it when it suddenly fell. All the tools in the shops have been destroyed. You can see my church too. Sewing machines, fridges, freezers and many food items were burnt beyond recognition. Government should just help us out because I don’t know what else to say.’’

     

    Police were seen preventing passers-by from accessing the scene of the incident at 4 pm.

     

    Reacting to the incident, the state governor, Dapo Abiodun, expressed sympathy to the victims of the explosion.

     

    In a statement by his Chief Press Secretary, Kunle Somorin, on Saturday, the governor was quoted as describing the incident as unfortunate.

     

    The governor who thanked God that no life was lost to the explosion, however, expressed grief at the level of destruction of people’s property.

     

    Abiodun explained that such an unforeseen incident was one of the reasons his administration decided to embark on the reconstruction of the Ijoko-Alagbole-Lambe-Akute Road, despite the huge amount of public funds sunk into the road without completion by the immediate past administration.

     

    Calling for calm among the residents of the Matogun and its environs, the governor assured that work would be expedited on the road to forestall such an incident and to make life of the people in the axis comfortable.

     

    Abiodun, who reiterated his administration’s commitment to making the people of Ogun State enjoy the dividends of democracy, stated that palliative assistance would be rendered to those who lost their property to the inferno to mitigate their losses.

  • Nigeria will stop importing petroleum products in 2023 – NNPC Ltd

    Nigeria will stop importing petroleum products in 2023 – NNPC Ltd

    The Nigerian National Petroleum Company (NNPC Ltd.), said that the importation of petroleum products into the country will be stopped by mid-2023.

    Mele Kyari, Group Chief Executive Officer of NNPC Ltd. disclosed this at the State House Ministerial Briefing organised by the Presidential Communications Team, on Tuesday in Abuja.

    He said that the combined output of Nigeria’s refineries being revamped and Dangote refinery would be enough to stop importation.

    He said: “Even if all the refineries are working today, you will still have a net deficit of Premium Motor Spirit (PMS) to import into this country.

    ”This is what it means, because our population has grown; demand has grown; the middle class has grown. I am sure everybody here owns one or two cars; and as such, the volume of petroleum products we require in this country has grown exponentially.”

    Kyari stated that this was because there was clearly an exponential growth in our need for PMS.

    “So, even if they all come, we are going to stop importation of petroleum products, but happily also, NNPC Ltd owns 20 per cent equity in the Dangote Refinery and we are very proud of this,” he added.

    Kyari said that aside from owning 20 per cent equity in Dangote Refinery, NNPC Ltd had the right of first refusal to supply crude oil to that plant.

    “But, we saw this energy transition challenge coming; we knew that time will come when you will look for people who will buy your crude oil, you will not find.

    “And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years. By right also, we have access to 20 per cent of the production from that plant,” Kyari said.

    He expressed optimism that Dangote Refinery would become operational by the middle of 2023. According to him, the refinery has a production capacity of 650, 000 barrels per day, with a different technology.

    Kyari added: “Which means that, it can crack the crude in a manner that you can have more gasoline than a typical refinery; that means the refinery has the ability to produce up to 50 million litres of PMS.

    “So, the combination of that and our own ability to bring back our refinery will completely eliminate any importation of petroleum products into this country.

    “This is very practical; this is possible; as a matter of fact, what we have done with our own refineries and the Dangote Refinery with many other small initiatives we have put in place—small, modular, condensate refineries that we are building.

    ”If that happens, we are very optimistic it will happen; you will see that this country will now be a net exporter”.

    The NNPC boss said he was looking forward to Nigeria becoming a hub of export of petroleum products, not just to the West African region, but to the rest of the world.

    He said he was upbeat as the flow of supply would change by the middle of 2023.

    “So, you will not have need for the importation of petroleum products into this country by the middle of next year,” he said.

  • Ending petrol subsidy extremely difficult but inevitable – MOMAN

    Ending petrol subsidy extremely difficult but inevitable – MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) says ending subsidy on Premium Motor Spirit (PMS) is extremely difficult but the Federal Government has no other option in light of current economic realities.

    MOMAN also called for massive investment by the government in various sectors such as mass transportation, healthcare and education to successfully wean off Nigerians from petrol subsidy.

    A statement posted on MOMAN’s website on Friday said its Chairman, Mr Olumide Adeosun, MOMAN, made this known at the just concluded Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference in Lagos.

    Adeosun spoke on the topic: “Energy Transition, PIA, Petroleum Pricing and the Way Forward for the Downstream Sector.”

    Represented by Mr Clement Isong, the Chief Executive Officer, MOMAN, Adeosun said it would remain extremely difficult to wean Nigerians off cheap PMS, also known as petrol.

    He said: “It is something that must be done as there are no more viable options.

    “We are told that this year the subsidy bill to the Federal Government may be between N5 trillion and N6 trillion. Clearly, Nigeria cannot afford this.

    “To wean Nigeria off this subsidy, a lot of investment must be done to sensitise Nigerians in convincing them and finding alternatives.

    “We need to begin to remove the subsidy and mitigate the pains Nigerians will feel when petroleum prices begin to manifest their true value.”

    Adeosun said marketers were optimistic that the industry was headed in the right direction with the enactment of the Petroleum Industry Act (PIA) 2021 which was an excellent piece of legislation.

    “We are now at the point of implementation, which is taking a bit longer than hoped but this is not necessarily a bad thing.

    “The President postponed the implementation of free market pricing, which has caused a slowdown with respect to benefits expected from free competitive open market pricing, such as new investments and subsidy removal, ” he said.

    Adeosun said the marketers were also convinced that (the decade of gas declared by the Federal Government in January 2021) was clearly the way forward.

    He said, however, the increase in gas prices worldwide and the unavailability of the product had made it a little more difficult in the roll out.

    Adeosun said: “The ordinary Nigerian who was meant to transit to gas not just for cooking but also for powering automobiles and power generation is struggling and because PMS pricing is yet to be fully deregulated.

    “It creates an aberration and additional challenge for the adoption of gas, as most people are still dependent on cheap PMS for their cars and generators.”

    According to him, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has an important role to play in guiding our future, the best regulator ultimately is the market.

    “The market regulates prices if you are too expensive people would not buy from you. The market regulates quality as well as customer service. The market also rewards the best in class.

    “We need to move to an era of transparency and information dissemination.

    “Energy correspondents need to share as much information as possible with the market and public with respect to cost prices, quality, product specifications, customer service and pump prices.

    “That is the best regulation you can ask for,” Adeosun said.

  • What FG should do to remove fuel subsidy – TUC president

    What FG should do to remove fuel subsidy – TUC president

    Mr Festus Osifo, president, Trade Union Congress (TUC), says Nigerians are not averse to the removal of subsidy on Premium Motor Spirit (PMS) but waiting for the government to win their trust over the issue.

    Osifo spoke during a panel session at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference on Thursday in Lagos.

    The topic of the session was “Energy Transition, PIA, Petroleum Pricing and the Way Forward for the Downstream Sector.”

    He noted that majority of Nigerians were not really interested in energy transition but were only concerned about affordable and reliable energy.

    Osifo, who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that the downstream sector had not achieved its potential due to the thorny issue of PMS subsidy.

    He said apart from communicating with the people to create an attitudinal change, the government must lead by example by cutting out wastage and making sacrifices that would help Nigeria overcome its economic challenges.

    “The Presidency should come out and say that they are reducing their budget. The National Assembly also needs to do so. That is leading by example.

    “Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting.

    “The government must demonstrate that if subsidy must go, this must reflect in our education, it must reflect in our healthcare and also our level of infrastructure.

    “So, the trust deficit that Nigerians have must be addressed before we can make any progress,” Osifo said.

    However, Mr Olumide Adeosun, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), called for a phased removal of PMS subsidy to mitigate its impact on ordinary Nigerians.

    Adeosun, who was represented by Mr Clement Isong, Executive Secretary, MOMAN, said the N5 trillion subsidy payment by the government was unsustainable and putting a huge strain on the nation’s forex reserves.

    He said the best option was to fully deregulate the sector and allow market forces to determine the price while also investing the subsidy gains in other critical areas such as mass transportation, healthcare and education.

    Similarly, Dr Gabriel Ogbechie, Group Managing Director, Rainoil Ltd., said the global average price currently for PMS was N516 per litre, which was way higher than the N175 per litre it was being sold in Nigeria.

    Ogbechie said the government should not only deregulate but also initiate a petrol tax to fund maintenance and construction of critical infrastructure across the country.

  • FG denies increasing petrol pump price

    FG denies increasing petrol pump price

    The Federal Government on Monday has denied increasing the pump price of Premium Motor Spirit (PMS) insisting that it was oil marketers who did.

    FG reiterated that the difference in the cost of the commodity depending on one’s location was arrived at by these marketers.

    Meanwhile, Federal Government didn’t give a clear picture of why it can’t enforce strict compliance on the initially agreed price of 165.

    TheNewsGuru, com reports that oil marketers across the country recently raised the price of petrol above the approved N165/litre rate without any official approval by the government.

    The marketers had argued that the N165/litre approved price was not sustainable and was contributory to the scarcity of petrol in many locations nationwide.

    They eventually hiked the pump price of petrol and maintained the price increase for several weeks running without any resistance from the government.

    Speaking on the sidelines of the stakeholders’ consultation forum on Midstream and Downstream Petroleum Regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, insisted the government had not raised the price of PMS.

    Asked to comment on the disparity in the pump prices of petrol and why the government had not waded into the matter, the minister said, “Well, I can tell you authoritatively that we have not deregulated.

    “The government is still subsidising, if there are increases in the price it is not from the government, it is probably from the marketers.

    “But, of course, I will talk to the NMDPRA’s chief executive to ensure that they regulate the prices. But this is not from the government because we have not deregulated.”

    Probed further to explain why no action had been taken against the marketers and why there had been no monitoring exercise to enforce the government-approved price, Sylva replied, “Well, I don’t know about monitoring exercise.

    “But I know that the authority is fully on their job and the queues will be dissipated very soon.”

    At the essence of the forum, the Chief Executive, NMDPRA, Farouk Ahmed, said the programme was by the demands of the Petroleum Industry Act to allow stakeholders to participate in the making of regulations which impact them.

    He said, “Section 216 of the PIA mandates the authority to ‘consult with stakeholders before finalising any regulations or amendments to regulations.

    “However, we do not consider this an obligation or box-ticking exercise as continuous engagement with our stakeholders to enable their business is at the core of our regulatory philosophy.”

    “However, we do not consider this an obligation or box-ticking exercise as continuous engagement with our stakeholders to enable their business is at the core of our regulatory philosophy.”

  • Fuel price increase not from government – Sylva

    Fuel price increase not from government – Sylva

    The Minister of State for Petroleum Resources, Chief Timipre Sylva has disclosed that the increase in the price of Premium Motor Spirit (PMS), otherwise known as fuel, is not by the government.

    TheNewsGuru.com (TNG) reports Sylva, who disclosed this while speaking with journalists on Monday in Abuja, stressed that the federal government was yet to remove subsidies on fuel.

    The minister spoke on the sidelines of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stakeholders’ consultation forum on regulations.

    The forum was organised by the authority to consider and review the midstream and downstream petroleum regulations to bequeath the industry with laws and policies to enable needed investment in the sector.

    Sylva was reacting to the increase in pump price of petroleum by marketers from N165 per litre to N169, N184 and N218 per litre depending on the area in Abuja and other states.

    “I can tell you authoritatively, we have not deregulated. The government is still subsidising petrol prices. If there are increases in price, it is not from the government.

    “It is probably from the marketers but of course, I will talk to the authority to ensure that they actually regulate the price. This is not from the government, we have not deregulated.

    “But a lot is going on to ensure that the queues end. As of yesterday, I noticed that the queues in Abuja are easing off,” the minister said.

    Recall that there was fuel scarcity recently in Abuja and several other cities across the country. Although the crisis in Abuja began in 2021 after the government announced plans to remove fuel subsidy, a major shortage hit major cities including Lagos in February.

    This led to queues at filling stations and left millions unable to power their cars and generators they rely on for electricity. The discovery of high amounts of methanol in imported fuel also contributed to the scarcity then, as authorities tried to replace the off-spec product across the country.

    The crisis lingered for months in spite of the Federal Government’s assurance that it had sufficient stock of petroleum products for distribution. The scarcity continued in Abuja “on and off”, while black market sales thrived.

    The Association of Distributors and Transporters of Petroleum Products (ADITOP) had earlier disclosed that high cost of Automotive Gas Oil (AGO) used by petroleum tankers and low freight rate were responsible for the current fuel scarcity in the FCT.

    The Federal Government had since increased the freight rate of transporters by N10 which was a huge jump from N10.46 to an additional N10 and now N20.46.

  • Searching for what is not missing – By Owei Lakemfa

    Searching for what is not missing – By Owei Lakemfa

    We live in a baffling world in which many leaders believe that their people can be led by the nose. They assume they are wise and that those they govern are stupid. This leads to all sorts of situational comedies, some with tragic consequences. A few definitions.

    A joke is when a ruling party in order to restructure, sacks all its members, directing them to re-register; making it the first party in history without a single member. A sick joke is when former members of the party admit the president as the first member.

    Hollywood is when the leader of a party who buys and allocates votes says he is the champion of free, fair and transparent elections. Nollywood is when such a leader gives continental lectures on how best to conduct free elections, protect the vote and uphold the mandate of the electorate.

    Comedy is when the president and commander-in-chief of a country with lots of ungoverned spaces and whose leadership is challenged by bandits, always assures all that he is on ‘top of the situation’. Tragi-comedy is when such a leader is giving lectures in the region on security and how best to secure a populace.

    Incapability is when the government of an oil-rich nation is incapable of refining petroleum products for domestic use. Gross incapability is when that government expends scare foreign exchange to import PMS but is incapable of distributing the product at the fuel stations for consumers.

    Deceit is when a politician promises to build at least one refinery yearly but in his eighth year, has not even turned the sod for one. Mass deceit is when this same politician having promised to reduce the price of a litre of PMS from 65 Eco to 40 Eco only if they vote for him, but ends up selling at thrice, four times the old price.

    Stupidity is when an import-dependent country with many ports open to the ocean, abandons all except a twin-port. Compound stupidity is when the roads leading to the twin-port is perpetually congested making movement virtually impossible.

    Joblessness is when the leader of a country roams the world for private reasons or jets out fortnightly like a tourist. Presidential joblessness is the president of a country writing to congratulate the newly appointed president of another country, and follows up with a three-day ‘state visit’ just ‘to assure the new president of the high assurances of his highest esteem’.

    Provocation is when an overfed leader, while picking his teeth, pretends to be unaware of the hunger gnawing the stomachs of the citizenry. Extreme provocation is when such a leader arranges bags of rice on racks presenting them as ‘rice pyramids’ and assuring the citizenry that the times of plenty are here.

    A nitwit is a leader who inherited a minimum wage whose value was three bags of rice and profusely congratulates himself for increasing the wage to the extent that it cannot buy a bag of rice. A challenged leadership is when such a leader believes he is worthy of the status of a messiah for increasing the national minimum wage.

    Fraud is when a political party makes a fake promise to bring the exchange rate of 200 Eco to the dollar, to a parity of 1E-$1. Serious fraud is when the government of such a ruling party, exchanges a dollar for over 700 Eco.

    Pretence is for a government to promise basic education for all children but end up swelling the number of children without access to education from 10.5 million to 18.5 million. A sin is to abandon schools built by the predecessor for homeless children and turn them back on the streets.

    Ineptitude is to rail against the mass kidnap of school children in a school under a preceding administration, but put no measures in place to prevent a repeat. Gross ineptitude is for thousands of other children in multiple schools to be continuously kidnapped under the new administration.

    Fakery is when a government vows to bring bandits to book but is ever making excuses. Serious fakery is when a notorious bandit and mass murderer declared wanted by the police, is turbaned as the spiritual leader of his ethnic group in the presence of government officials who make speeches praising him for promising to reduce banditry and mass killings.

    A lie is when a government for seven years vows to return internally-displaced-persons, IDPs, to their ancestral homes but builds more IDPs camps. A fat lie is when the same government allows the terrorists occupying those occupied lands to live peacefully in them, changing the names of the villages and towns, while assuring the IDPs of a quick return home.

    Deceit is when a presidency promises mass housing on a scale unheard of but, in reality, builds mass IDP camps. Mass deceit is when the same presidency announces to the world that the IDPs would soon be resettled in their old homes, but tells the victims that it is better they give up their ancestral lands rather than end up in graves.

    Lack of trust is when a president makes an electoral vow to build adequate medical infrastructure as to make foreign medical trips unnecessary, while he ends up being the leading foreign medical tourist in the country with the presidential aircraft parked at various times for weeks on end at a foreign airport accumulating fees. Delusion is when he thinks the people have forgotten his electoral vows.

    A tricky leader is one who vowed to reduce waste in governance by downsizing the presidential air fleet, but from 2016 to 2017 increases the cost of its maintenance by 19.6 per cent, and then by 98.7 per cent the following year, and in 2019, by 99.6 per cent. While reducing the cost in 2020, he increases the maintenance cost in 2021 by 243.6 per cent. Illusion is when such a leader convinces himself that he has successfully sold the people a dummy.

    Talk is cheap, more so for cheap governments on a rich diet of falsehood and creamy dessert of propaganda. They search for what is not missing just to give the lie that their noisy, endless motions are actual movements toward good governance and development.

    Proverbs are the lyrics of the wise and only the wise and knowledgeable can dance to its drums. But the uninitiated, unable to decode the songs may feel they are the target. This may not be correct. So before attack dogs are unleashed to howl and disturb our ear drums, I issue a caveat emptor that this piece is fictive realism and that the characters are imaginary; more like ghosts hovering around history. Therefore, any resemblance to any character living or dead is coincidental and should be ignored.

  • Scarcity: How we are tackling fuel queues in Abuja – NNPC

    Scarcity: How we are tackling fuel queues in Abuja – NNPC

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its weekly activities with a resolve to quickly end the incessant queues at various filling stations in the Federal Capital Territory (FCT), Abuja.

    By this resolution, the company in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stepped up the supply of Premium Motor Spirit (PMS) to the FCT from 70 to 140 trucks to combat the lingering fuel queues.

    Speaking to newsmen during an inspection tour of filling stations in Abuja, NNPC’s Group Executive Director, Downstream, Mr Yemi Adetunji, explained that there were enough petrol in the nation’s strategic reserve to last 32 days.

    “We have 1.9billion litres of PMS that can last for 32 day. NNPC is making every effort to ensure energy security for the country.

    “We have sorted out Lagos. We are working with all relevant stakeholders to bring the situation in Abuja under control; normalcy will be restored in the next few days.”

    Speaking earlier, the CEO of the NMDPRA, Mr Farouk Ahmed, said that the improvement in the supply of products from an average of 70 to 140 trucks was made possible by the Presidential approval of a ₦10 freight rate discount increase to petroleum products transporters as part of solutions to the fuel supply challenge.

    He charged marketers to play by the rules as NMDPRA would not hesitate to sanction anyone found to be involved in underhand practices.

    “We are doing everything to bring the situation to normal. We also want to state that there is no increase in the pump price of PMS, and any such sharp practice will be sanctioned accordingly by the Authority,” he said.

    The tour of the filling stations was to monitor developments and ensure compliance.

    In another development, Major stakeholders in the downstream sector of the oil and gas industry have suggested ways to mitigate the continuous rise in prices of diesel and cooking gas in Nigeria.

    Among the stakeholders who spoke at a public hearing organised by the House of Representatives Joint Committees on Downstream and Gas Resources in Abuja were the Chief Executive Officer of the NMDPRA, Mr Farouk Ahmed and the Group Managing Director/CEO of NNPC Ltd, Malam Mele Kyari.

    Leaders of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Independent Petroleum Marketers Association Of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Liquefied petroleum gas (LPG) Gas Marketers Association, among others, were also in attendance.

    Fielding questions from members of the committee, Ahmed said that the current geopolitical crisis in Ukraine and Russia had affected the global crude oil supply resulting in the increase of petroleum products prices across the globe.

    Ahmed said that the rise in the prices of petroleum products was a global phenomenon and not a local problem peculiar to Nigeria.

    He added that the landing cost of petroleum product was also a major factor affecting the price of petroleum products.

    “We need to see what can be done to alleviate the suffering of the people.

    “If our refineries come back on stream and make foreign exchange available at the official rate of N400 per dollar, things will definitely improve.

    “We also need to address the issue of vandalism,” he said.

    On his part, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the only way to tackle the rising price of diesel and cooking gas was to increase the production of crude oil.

    Kyari said that acts of vandalism of oil facilities have been responsible for the decline in production which in turn was responsible for the unavailability of foreign exchange.

    He disclosed that 27,000 barrels were lost in a recent attack on one of the company’s facilities.

    According to him, besides the Russia-Ukraine war which is affecting the supply of products across the world, most major oil companies are also shutting down in keeping with global emphasis on the shift from fossil fuels over environmental concerns.

    “No one can guarantee stability of petroleum products supply; the world has never seen this kind of uncertainty. Today, countries are stockpiling products.

    “Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil but with the ongoing intervention, by the end of July we will restore production to a level that is reasonable.”

    The Chairman, House Committee on Downstream, Rep. Abdullahi Gaya, said that there was need to find solution to the high cost of diesel and cooking gas in order to alleviate the hardship on Nigerians.

    Some of the lawmakers said that although Kyari and Ahmed candidly presented the worrisome situation the industry was faced with, they, nevertheless unanimously expressed confidence in their ability to bring the situation under control.

    The stakeholders present at the hearing include the Independent marketers, suggested a short, medium and long term solutions to combat the challenges.

    They also pledged to work with the NNPC and the regulatory agency to redress the situation.

    Meanwhile, the Management of NNPC Ltd. sensitised members of staff to the challenges and opportunities inherent in the transition from a corporation to a limited liability company.

    This was in continuation of its stakeholders’ engagement to achieve a smooth transition.

    The NNPC GMD/CEO, Kyari, said at a town hall meeting which held at the NNPC Towers, that it was imperative for all staff to embrace the change with courage and look beyond the temporary discomfort to the huge opportunities that lie ahead of the new NNPC.

    He commended President Muhammadu Buhari for the courage to have signed the Petroleum Industry Act (PIA) into law, pointing out that the lack of effective regulatory framework and unbridled government interference were responsible for NNPC’s losses in the past.

    “NNPC is now free of burden.

    “Nigerians are looking up to us, they expect NNPC to lead the way in making profit and adding value for the benefit of the over 200 million stakeholders.”

    Kyari said that given the volume of the Company’s assets that was signed and transferred officially on July 1, 2022, by the Ministers of Petroleum Resources and Finance respectively, the new NNPC would be the most capitalised company in Africa and would be poised to announce its first Initial Public Offer (IPO) in the next three years.

    He also informed that the company’s financial statement for the year 2021 would be better than that of year 2020 when NNPC reported a profit after tax of 287 billion naira.

    In her remarks, the Chairman of the NNPC Ltd., Sen. Margery Chuba-Okadigbo, assured of the Board’s continuous support towards the realisation of the goals of the new NNPC Ltd., while encouraging members of staff to imbibe the concepts of dynamism and creativity required for global competitiveness.

    She said that deducing from her experience at the helm of the NNPC Board, she had conviction to endorse the GMD’s policies on transparency and accountability, noting that the company as envisioned by the PIA can only achieve its objectives through firm commitment to excellence on the part of the entire workforce.

    Also in the week under review, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the marginal oil fields bid rounds kick-started in the year 2020 with the award of Petroleum Prospecting Licences (PPLs) to 161 successful companies.

    The commission also officially unveiled the Host Communities Development Regulations and model PPLs.

    Speaking at the event in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the presentation of the Licences was part of the implementation of the PIA 2021.

    He also noted that the category was being handled for the first time.

    The minister who commended the management and staff of the NUPRC for ensuring the successful completion of the process, described the conclusion of the process as a giant milestone for the administration.

    “The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.

    “As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.

    “It is my strong belief that the awardees will take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.

    “The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,” Sylva said.

    He added that the development would boost activities in the oil and gas sector, increase production output and create additional employment opportunities for Nigerians.

    On his part, the Chief Executive Officer of NUPRC, Mr Gbenga Komolafe, said that the Marginal Field Bid Round was one of the major tasks inherited by the commission on its inauguration in 2021.

    He listed some of the constraints that caused the delay in the conclusion of the exercise to include, the interruption brought about by the COVID-19 pandemic, partial payment of Signature Bonuses by some awardees, and the unwillingness of some co-awardees to work together in forming SPVs for field development.

    Recounting the history of the marginal field’s award initiative, Komolafe said that the process which began in 1999 was borne out of the need to entrench the indigenisation policy of the Federal Government in the upstream sector.

    He also said that the aim was to boost local content, stressing that since its inception, a total of 30 fields had been awarded with 17 currently producing.

    He disclosed that the 2020 Marginal Field Bid Round exercise raked in revenue of about 200 million naira and 7 million dollars into the Federal Government coffers.

    Komolafe added that the conclusion of the 2020 Marginal Fields Bid Round brought to an end the era of Marginal Field awards as stipulated by the PIA.

    “Section 94 (9) of the Act states that no new marginal field shall be declared under this Act.

    “Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act.”

    He urged the winner of the marginal fields to take advantage of the current market realities and quickly bring their fields to production, stressing that Nigeria was not benefiting much from the upswing in crude oil prices because of production disruptions occasioned by sabotage, theft, and other operational challenges.

    A total of 57 marginal fields were presented in the 2020 bid round out of which 41 were fully paid for and 37 fields were issued with the PPL, having satisfied all conditions for award.

    Out of the 665 firms that expressed interest in the exercise, 161 emerged as potential awardees.

    Some of the successful companies that received their licences include: Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd., Sigmund Oil Field Ltd., and Shafa Exploration and Production Company Ltd., among others.

    Still in the week, NNPC Ltd. said it was committed to fast-tracking efforts to identify new gas resources and develop existing ones amidst current global yearning for cleaner fuels.

    NNPC also said it was making efforts to identify new gas resources to boost revenues for investment in other sectors of the economy as part of its preparation for the global energy transition.

    The NNPC GMD/CEO, Malam Mele Kyari, stated this in a keynote address at the First E&P’s 10th Year Anniversary event which held in Lagos.

    The GMD, who was represented virtually by NNPC’s Chief Financial Officer, Mr Umar Ajiya, delivered the address with the theme, “Scarcity in Abundance: How Gas can Enable Energy Access in Nigeria and Africa”.

    He said that though Nigeria remains determined to achieve net-zero carbon emission by 2060, there was absolute need to harness the country’s abundant hydrocarbon resources to actualise that objective.

    He emphasised that with the enactment of the PIA, and the introduction of such initiatives as the Decade of Gas and the Gas Transportation Network Code, Nigeria sought to open up robust and quick business opportunities for both indigenous and foreign investors in the gas sector.

    “I make bold to say that harnessing our abundant resources remains Nigeria’s major pathway towards leveraging gas, the least carbon-emitting fossil fuel, as a transition fuel.

    “To this end, massive gas development efforts are ongoing, including the construction of a 614km gas pipeline which is aimed at enabling gas transportation to the North of the country and ultimately beyond Nigeria.”

    Kyari also congratulated the Board, Management and Staff of First E&P on the 10th anniversary of the company which he described as “historic milestone”.

  • Fuel scarcity hits Lagos State as IPMAN members shut stations

    Fuel scarcity hits Lagos State as IPMAN members shut stations

    Fuel queues on Monday resurfaced in most parts of Lagos State following the decision of some members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to shut down their operations.

    Mr Akin Akinrinade, Chairman, IPMAN, Lagos Satellite Depot, Ejigbo, who confirmed the development to newsmen in Lagos said the members took the decision because they could no longer operate at a loss.

    Akinrinade said while the government had fixed N165 per litre as the pump price of Premium Motor Spirit (PMS), the current realities in the market showed that the minimum the product should be retailed at the stations should be N180.

    According to him, the current scarcity being witnessed in Lagos is because the majority of petrol stations in the state are owned by IPMAN members who are finding it difficult to operate in a hostile environment.

    He said: “As you can see, the queues are back and this is the second time we are witnessing it this year. However, this one is peculiar in the sense that for a particular reason, IPMAN members decided to shut their stations. This is not because we are on strike, but because we can no longer do business under this condition.”

    Akinrinade said IPMAN members ought to be getting supply from the Pipelines and Product Marketing Company (PPMC) and had made payments of over N1 billion since October 2021.

    He said the products were yet to be delivered forcing members to patronise private depots for products while at the same time servicing loans borrowed from banks for their money with PPMC.

    Akinrinade said: “Now, these private depot owners have increased the ex-depot price of PMS from N148.17 to N162 per litre. That is the amount they are selling to us.

    “When you factor in the handling charge, transportation and running cost of our stations, you will see that even within Lagos, the minimum we can retail petrol is about N180 per litre.

    “We want Nigerians to know that IPMAN members are patriotic citizens and we are not out to sabotage the effort of government because we know this hike in petroleum products prices is not peculiar to Nigeria.

    “The ongoing conflict between Russia and Ukraine has disrupted the supply chain and the Nigerian government is doing its best to mitigate its impact on our nation.”

    He, therefore, urged the government to direct the private depots to revert to the old ex-depot price for PMS or deregulate the downstream sector to allow market forces to determine the price.

    Akinrinade also advised the government to expedite action on the rehabilitation of the nation’s refineries in order to increase the domestic refining capacity.

    He further called for the resumption of pumping products through the PPMC Ejigbo depot, which would enable IPMAN members to get supplies at a cheaper cost.

    Meanwhile, a correspondent, who monitored the fuel situation at Oshodi, Ejigbo, Ikeja, Egbeda and Ikotun areas, observed that majority of the filling stations were not selling petrol.

    Long queues were seen at the few stations selling with both private and commercial motorists complaining about the situation.

    A motorist, Mr Godwin Eke, told NAN that the return of fuel queues was not good for the economy.

    “We are spending hours here queuing to buy fuel when we could have been doing something more productive with our time.

    “I have not been to my shop since morning because I want to fill my tank, which will last me for the week,” he said.

    A commercial bus driver, Mr Aliyu Dawodu, said the scarcity was not good for business, especially as the drivers could not increase their fares.

    However, Mr Ayorinde Cardoso, Zonal Operations Controller, Nigerian Midstream and Downstream Petroleum Regulatory Authority, advised the public not to engage in panic buying.

    “There is sufficient fuel at the depots and jetties. As at today (Monday) we have a total of 234,920,127 litres of PMS in various depots in Lagos.

    “In addition, we have four vessels in Lagos jetties discharging 186,753,650 litres of PMS,” he said.