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Tag: PPPRA

  • FG scraps DPR, PEF, PPPRA; announces takeover agencies, CEOs

    FG scraps DPR, PEF, PPPRA; announces takeover agencies, CEOs

    The Federal Government has scrapped the Department of Petroleum Resources (DPR), Petroleum Equalisation Fund Management Board (PEF[M]B), and Petroleum Product Pricing Regulatory Agency (PPPRA).

    As a result, the government announced the transition of the now-defunct DPR, PEF(M)B, PPPRA to the newly introduced agencies and their chief executives with respect to the Petroleum Industry Act (PIA).

    The scrapping of the three agencies was announced by the Minister of State for Petroleum Resources, Timipre Sylva, a statement from the ministry revealed.

    “The new agencies are the Nigerian Upstream Regulatory Commission, as well as the Nigerian Midstream and Downstream Authority,” said the statement posted on the ministry’s Facebook page on Monday.

    “The management team comprises Engineer Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Regulatory Commission, while Engineer Farouk Ahmed is the Chief Executive Officer of the Nigerian Midstream and Downstream Regulatory Authority.

    “H.E. Timipre Sylva charged the new chief executives to be up and doing in their respective areas, in order to ensure that there is a smoother, fuller actualisation of the PIA.”

    Before the latest development, the DPR monitors fuel stations across the country to ensure products are not hoarded, among other functions while PEF(M)B is the special intervention put in place by the government to ensure products are sold at approved prices.

    PPPRA, on the other hand, is saddled with the responsibility to determine the pricing policy and regulate the supply and distribution of petroleum products, among others.

    TheNewsGuru.com, TNG reports that President Muhammadu Buhari on August 16, signed the PIA to replace the obsolete Petroleum Act of 1969, after several years of pressure on successive administrations to enact the law.

    Two days later, he approved the setting up of a steering committee chaired by Sylva to immediately commence the implementation of the Petroleum Industry Act (PIA). The committee has a duration of 12 months for the assignment.

    President Buhari, in a letter dated September 16, asked the Senate to amend the PIA, saying the request became necessary after he reviewed the administrative structure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission.

    He listed the three areas of the Act he sought to be amended to include the appointment of non-executive board members, removal of the Ministries of Petroleum Resources and Finance from the boards of the two institutions, as well as the appointment of executive directors.

  • PIA implementation won’t raise fuel price –PPPRA

    The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday said the implementation of Petroleum Industry Act (PIA) may not necessarily lead to an increase in the pump price of petrol in the country.

    The Executive Secretary of the Agency, Mr Abdulkadir Saidu, disclosed this in a statement in Abuja on Sunday.

    “There is no gainsaying it that the PIA signals the implementation of full deregulation of the downstream sector. However, it is noteworthy that the PIA does not automatically translate to immediate increase in the price of PMS.

    “The current price will remain until ongoing negotiation with Organised Labour, which will develop a feasible framework that minimises the impact of a Market-Based pricing policy on the masses, is concluded,’’ he said.

    He further congratulated President Muhammadu Buhari and Minister of State for Petroleum Resources, Chief Timipre Sylva for making the historic Petroleum Industry Act (PIA) a reality.

    “The PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

    “Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,’’ he said .

    He added that the implementation of the PIA would foster greater investment in the sector.

    “It will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains,” Saidu added.

    He also commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu said that the establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly delineates the roles of industry operators and regulators.

    The implementation committee of the PIA is to be chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva.

  • PIA does not mean increase in petrol price – PPPRA

    PIA does not mean increase in petrol price – PPPRA

    The Petroleum Products Pricing Regulatory Agency (PPPRA) says the implementation of Petroleum Industry Act (PIA) does not mean automatic increase in the pump price of petrol in the country.

    The Executive Secretary of the Agency, Mr Abdulkadir Saidu, disclosed this in a statement in Abuja on Sunday.

    “There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector.

    “However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.

    “ The current price will remain until a negotiation with organised labour, which will develop a feasible framework that minimises the impact of a Market-Based pricing policy on the masses, is concluded,’’ he said.

    He further congratulated President Muhammadu Buhari and Minister of State for Petroleum Resources, Chief Timipre Sylva for making the historic Petroleum Industry Act (PIA) a reality.

    “The PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

    “ Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,’’ he said .

    He added that the implementation of the PIA would foster greater investment in the sector.

    “ It will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains,” Saidu added.

    He also commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector.

    Saidu said that the establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly delineates the roles of industry operators and regulators.

    Buhari on Aug. 16th passed into law the Petroleum Industry Bill (PIB) and constituted a steering committee for immediate implementation of the Act.

    The committee is to be chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva.

  • FG apologises to Nigerians over ‘unfortunate’ fuel hike information announced by PPPRA

    FG apologises to Nigerians over ‘unfortunate’ fuel hike information announced by PPPRA

    The Minister of State for Petroleum, Timipre Sylva, has apologised to Nigerians for the distress and inconvenience caused by ‘unfortunate information about the hike in fuel price.

    Sylva in a statement on Friday explained that neither he nor President Muhammadu Buhari had approved the increase in the retail price of petrol to N212 per litre.

    He said irrespective of the source of the information, “I want to assure you that it is completely untrue.”

    TheNewsGuru.com, TNG reports that the Petroleum Products Pricing Regulatory Agency (PPRA) in the early hours of Friday released a template showing that the new price of petrol has reached N212.6 per litre.

    This sparked outrage across the country especially on social media with many lamenting the effect that the increase would have on food prices and transportation in the country.

    Meanwhile, the PPRA later deleted the post which was earlier published on its website, http://pppra.gov.ng/pms-guiding-price-for-march-2021/

     

    See the full statement by the Minister of Petroleum below…

    Dear Nigerians, you are by now very aware of the news trending that the Federal Government has increased the price of petrol to N212.6 per litre.

    Irrespective of the source of that information, I want to assure you that it is completely untrue. Neither Mr. President who is the Minister of Petroleum Resources nor my humble self who deputises for him as Minister of State, has approved that the pump price of petrol should be increased by one naira. I would therefore urge you to disregard this misleading information.

    You are all aware that for the past few months the government has been in consultation with organized labour to find the least painful option to respond to the global rise in the price of crude, which in turn has inevitably led to an increase in the price of PMS. It is unthinkable that the government would unilaterally abandon these discussions and act in the manner suggested by the information under reference.

    Cynism and deceit have never been the trademark of the administration of President Muhammadu Buhari.

    I would like to equally assure you that the engagement with organized labour and other stakeholders will continue even as the calculations to arrive at a reasonable price regime are being done; all in good faith, and you will be availed of the final outcome at the appropriate time.

    Until then, all marketers are strongly advised to maintain the current pump price of PMS before the emergence of this unfortunate information. Those who may want to take advantage of this unfortunate misinformation to extort Nigerians should not give in to such temptation as there are regulatory mechanisms that govt can enforce to protect its citizens.

    In conclusion, I want to sincerely apologise to all Nigerians for any distress and inconvenience the unfortunate information might have caused.

    Timipre Sylva

    Hmspr.

    12.03.2020

  • Fuel price hike: PPPRA backtracks

    Fuel price hike: PPPRA backtracks

    The Petroleum Products Pricing Regulation Agency (PPPRA) says the March guiding prices posted on its website does not translate to increase in the pump price of Premium Motor Spirit (PMS) also known as petrol.

    The PPPRA Executive Secretary, Abdulkadir Saidu disclosed this in a statement in Abuja, on Friday.

    “The attention of the Petroleum Products Pricing Regulatory Agency (PPPRA) has been drawn to speculations about the increased pump price of PMS.

    “The PPPRA by this release wishes to state clearly that the guiding prices posted on our website was only indicative of current market trends and do not translate to any increase in pump price of PMS.

    “However, publications by the media to this effect have been misconstrued and thus misleading,’’ he said.

    He said that the introduction of the market-based pricing regime for PMS Regulation 2020 was gazetted by the Federal Government.

    According to him, based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.

    “One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of guiding price to reflect current market fundamentals.

    “The PPPRA in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, monitors market trends on a daily basis to determine Guiding Prices,’’ he said.

    Saidu said that the agency was not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS.

    “PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy.

    “While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase.

    “The current PMS price is being maintained while consultations are being concluded.

    “Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,’’ he added.

    Saidu assured the public of adequate products supply as the average PMS Day-Sufficiency as of March 11, 2021 was over 35 days.

    “The PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public,’’ he said.

  • #FuelPriceHike: Angry Nigerians compare Buhari, Jonathan’s administrations; say we have been scammed

    #FuelPriceHike: Angry Nigerians compare Buhari, Jonathan’s administrations; say we have been scammed

    Some Nigerians have taken to social media to express their displeasure over the latest fuel hike.

    TheNewsGuru.com, TNG reports that the Petroleum Products Pricing Regulatory Agency (PPPRA) on Friday projected the price of Premium Motor Spirit (PMS), better known as petrol, at N212.11 per litre.

    The agency announced this in its pricing template for the month of March.

    Meanwhile, Nigerians have taken to social media in reaction to the latest hike. Most of them compared the administrations of the immediate past president, Goodluck Jonathan and incumbent Muhammadu Buhari.

    See reactions below:

    https://twitter.com/UncleMaazi/status/1370270206988271618?s=20

     

     

     

  • We’ve not increased ex-depot price of petrol – NNPC

    We’ve not increased ex-depot price of petrol – NNPC

    The Nigerian National Petroleum Corporations (NNPC) says it has not increased the Ex-depot price of Premium Motor Spirit (PMS) also known as petrol.

    The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, disclosed this while addressing newsmen in Abuja on Friday.

    Ex-deport price is the price at which oil marketers buy products at the depots, the price is what determines the price at which petrol stations will sell to motorists.

    He spoke while reacting to new PMS Pricing template released by the Petroleum Products Pricing Regulatory Agency (PPPRA) that indicted N212.61k Pumb price for the month of March.

    Obateru urged Nigerians and motorists not to engage in panic buying of the products as the corporation had no plans to increase its ex-depot price.

    “NNPC stands by that statement that we issued on March 1 that we are not increasing the Ex-depot price in the month of March and that is what it is.

    “There is no need for panicking and I can tell you from our own point of view that we will not increase the pump price of petrol and we are still standing by that March 1 decision.

    “We have sufficiency of product in the country and there is really no need for the public to panic. Like I have stated, the ex-depot price for the NNPC is still at it is, it has not increase and it will not increase in this month of March,’’ he said.

    Meanwhile PPPRA on its website on March 11, had fixed the pump price of petrol, at N212.61 per litre, for the month of March in its PMS guiding price template and said it would run from March 1 to March 31.

    According to the PPPRA, based on the average cost for the period, Feb. 1st to Feb. 28th 2021, and an average FMDQ Importer and Exporter (I&E) Naira/US Dollar Exchange Rate of N403.80, the expected retail price of PMS for March 2021, stands at N209.61 per litre and N212.61 per litre.

    This, it said remained the lower and upper band respectively.

    Giving a breakdown of the cost elements of the commodity, the PPPRA put the Expected Ex-Coastal price at N175.73 per litre, comprising Average gasoline price (FOB Rotterdam barge), and Average freight rate of N169.22 and N6.51 per litre respectively.

    It also put the Expected Landing Cost of the commodity at N189.61 per litre, comprising the addition to the ex-coastal price, of average lightering expenses, Nigeria Port Authority Charges, NIMASA charges, jetty throughput charges, storage charge and average financing cost of N4.81, N2.49, N0.23, N1.61, N2.58 and N2.17 per litre respectively.

    It further added the wholesalers’ margin of N4.03 per litre; administrative charge of N1.23 per litre; transporters’ allowance of N3.89 per litre; bridging fund of N7.51 per litre and Marine Transport Average of N0.15.

    It noted that various margins brought the expected ex-depot price, that is the price at which the commodity is sold to petrol stations, to N206.42 per litre.

    The PPPRA further stated that the inclusion of retailers’ margin of about N6.19 per litre, would bring the pump price of the commodity, the price at which it is sold to motorists, to N212.61 per litre.

    Meanwhile checks revealed that most petrol stations were selling petrol at the old price of between N162 and N168 per litre.

    Some NNPC petrol Stations visited are dispensing to motorists at N162 per litre.

  • Yuletide: PPPRA assures of adequate petroleum products

    Yuletide: PPPRA assures of adequate petroleum products

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has given assurance of availability of adequate petroleum products throughout the Yuletide period.

    The agency gave the assurance in a statement signed by its Executive Secretary Mr. Abdulkadir Saidu, in Abuja, on Thursday.

    “The average stock of Premium Motor Spirit (PMS) also known as petrol, for both inland and marine between Dec. 12th and 18th stood at 2,230,400,000 litres, translating to 39.83 days sufficiency.”

    “The country also has a total average volume of 623,080,000 litres of Automotive Gas Oil (AGO) or diesel with 44.51 days’ sufficiency, which signals good news for luxurious buses that are expected to dominate long travels during the festive season,’’ he said

    He said that the country also had 25 days sufficiency of Aviation Turbine Kerosene (ATK) with a total of 75, 780,000 litres and 34. 18 days sufficiency, with a total of 25,293,200 litres of Household Kerosene (HHK) for domestic use.

    Saidu advised marketers to operate within the confines of the rules guiding operations in the downstream and shun unwholesome practices that could cause Nigerians untold hardship during the festive period and beyond.

    “The Federal Government remains intensely focused on executing the National Gas Expansion Programme (NGEP); its gas master plan that will result in many fuel retail outlets being able to dispense gas to motorists in the New Year.

    “The NGEP Autogas rollout of Dec. 1st and the ongoing motor vehicle tank conversion exercise at various centres, herald the proliferation of a cheaper and cleaner alternative to petrol for Nigerians.

  • FG commences full deregulation as PPPRA hands off fixing prices for petrol

    FG commences full deregulation as PPPRA hands off fixing prices for petrol

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has said it would no longer fix price bank for marketers of petrol in Nigeria and will allow the market forces to determine prices.

    This was disclosed by the Executive Secretary of the Agency, Mr Saidu Abdulkadir, on Tuesday in Abuja during a chat with newsmen.

    Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Mr Abubakar said this decision was taken after the federal government implemented full deregulation of the downstream sector.

    The PPPRA had been fixing prices of the product in the country every month and in September, the new price band forced oil marketers to sell fuel for N160 to N162 per litre, which many Nigerians have kicked against.

    But in Abuja on Tuesday, the agency said the government was no longer in the business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

    “If we give you the price band for this month, it is like price-fixing,” the PPPRA executive said, assuring Nigerians that better days were ahead as things would normalise with time.

    He also explained why many marketers were yet to start importation of products, attributing this to non-availability of foreign exchange.

    He assured Nigerians that the deregulation of the downstream oil sector was in the best interest of the country, noting that it will continue to check for those that want to misuse the policy for profiteering.

    He explained that the recent increase in the pump price of the Premium Motor Spirit (PMS) was a result of the situation on the global market and forex shortage to marketers.

    According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

    “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short-changed in any way in this process.

    “You know how things are globally, with the impact of COVID-19 on the global oil market. Accessing forex remains a challenge for marketers.

    “We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

    Mr Abubakar said that the agency would continue to monitor the code of conduct that guides the operation of marketers in the industry and ensure that it was not violated.

  • Fuel price: PPPRA owns up on contradiction in deregulation policy

    Fuel price: PPPRA owns up on contradiction in deregulation policy

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has assured Nigerians that the deregulation of the downstream oil sector is in the best interest of the country.

    The Executive Secretary of the Agency, Saidu Abdulkadir, gave the assurance on Tuesday in Abuja, while briefing newsmen on the deregulation of the downstream oil and gas sector.

    Abdulkadir said that the recent increase in the pump price of the Premium Motor Spirit, PMS, hinges on the global market and availability of forex to marketers.

    Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Abdulkadir said many marketers were yet to start importation of products due to non-availability of foreign exchange.

    According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (PPMC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

    “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short changed in any way in this process.

    “You know how things are globally with the impact of COVID-19 to the global oil market. Accessing forex remains a challenge for marketers.

    “We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

    Abdulkadir said that the agency would continue to monitor the code of conduct that guides operation of marketers in the industry and ensure that it was not violated.

    He reiterated that government was no longer in business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

    He hinted that the agency may not be able to provide monthly price band for the product as it contradicts the deregulation policy.

    “If we give you the price band for this month, it is like price fixing’’ he said, and assured Nigerians that better days were ahead as things would normalise with time.