Economy

Marketers Fault NNPC as Corporation Says Fuel Price Down to N142/litre

Published

7 years ago

September 4, 2017

Marketers Fault NNPC as Corporation Says Fuel Price Down to N142/litre

The Nigerian National Petroleum Corporation on Sunday announced that its sustained strategic intervention in the efficient supply and distribution of petroleum products had led to a significant fall in the price of Premium Motor Spirit, also known as petrol, across the country.

It added that the intervention had also warranted a significant drop in the price of Liquefied Petroleum Gas, also known as cooking gas, nationwide.

The corporation said a national survey by its oil and gas forum indicated that in the last few weeks, the price of petrol had fallen steadily from N145 per litre to between N143 and N142 per litre in some stations across the country.

But oil marketers under the aegis of the Depot and Petroleum Products Marketers Association refuted the NNPC’s claims on the crash of the PMS price, arguing that the corporation might have reduced petrol price at its stations because of its relative ease of assessing foreign exchange.

The NNPC said one of the respondents in the survey and a manager at an independent fuel retail station in Abuja, Mohammed Abdullahi, confirmed that his station was selling petrol at N142 per litre in line with the prevailing market situation in order to sustain the turnover of the business and attract more motorists to its outlet.

It quoted another independent marketer in Mosimi, Emeka kechukwu, as saying that the ex-depot prices of petrol had dropped from N138 per litre in most depots to N133.28 in the NNPC depots and between N130 and N131 per litre in private depots.

It, however, noted that the situation was slightly different in Aba and Umuahia in Abia State, and Calabar in Cross River State, where most independent fuel stations as well as major marketers sold the product at N145 per litre.

“The study showed that the NNPC mega and affiliate stations across the country are selling the product for N143 per litre, while the pump price range from N142 to N145 per litre in some major and independent marketers in Lagos, Abuja, Sokoto, Enugu, Delta and other major cities,” the national oil firm said in a statement issued by its spokesperson, Mr. Ndu Ughamadu.

The survey, it said, showed a similar trend of drop in the prices of cooking gas with the average cost of refilling a 5kg cylinder at N2,215.96, in contrast to the former price of N2,500.

The study further revealed that states with the lowest average price for the 5kg LPG refill were Kaduna and Niger, at N2,000; Kogi at N2,005.00; and Oyo at N2,033.33.

It stated that at the NNPC mega and retail stations nationwide, a 12.5kg of cooking gas that was sold for N4,500 a few months ago had dropped to N3,800, while other retail outlets were selling the same quantity at N4,000.

“The NNPC has sustained its interventions through improvement in the supply of the products and remodelling of distribution channels to address sufficiency issues across the country,” the corporation said.

It added that it had stepped up the resuscitation of some of its critical pipelines and depots such as the Atlas Cove-Mosimi Depot Pipeline, Port Harcourt Refinery-Aba Depot Pipeline, Kaduna-Kano Pipeline and the Kano Depot, adding that the facilities had enhanced efficiency in products distribution.

“Efforts are also ongoing by the NNPC to revamp other critical pipelines and depots across the country to further push down the prices of petroleum products for the benefit of consumers,” the oil firm said.

But the Executive Secretary, DAPPMA, Olufemi Adewole, told our correspondent that members of group were still selling petrol at N145 per litre, adding that he was not aware that the price of the product had crashed.

He said, “I’m not aware the price of petrol has crashed. My people are still selling at N145 per litre. So if the NNPC has crashed its price, it doesn’t have the overhead that we have; it is not repaying loans to banks like we are paying and government is not owing the NNPC like it owns us.

“So, we are operating in the same market but different conditions. Maybe they (NNPC) crashed the PMS price in their own petrol stations. Government owes marketers foreign exchange and interest on loan repayment for the past two years. Is it these marketers that will now sell at a price that they cannot get the product?”

Adewole added, “My own people in DAPPMA are selling at N145 per litre and that is the official market price. If the NNPC is selling at a lower price, you should know that the NNPC is not being owed by government; it is not going to banks to borrow money that it has to pay interest on when repaying. Also, the NNPC is not buying foreign exchange to import products.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

BOI Outlines Path to Achieving $1 Trillion Nigerian Economy by 2026

Published

15 hours ago

September 30, 2024

Bassey Marshall

The Bank of Industry (BOI) has outlined steps Nigeria must take to realize its ambition of achieving a $1 trillion economy by 2026.

This was disclosed by the bank’s Divisional Head of Services, Isa Omagu, on Saturday at the 2024 annual conference of the Finance Correspondents Association of Nigeria in Lagos.

At the conference, themed Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector, Omagu said it is important Nigeria prioritize enhancing its production capacity.

“The economy relies on both the monetary and fiscal sides; we need both to work together. While the monetary side is trying to stabilize prices, which is its primary mandate, we also need the fiscal side, particularly governance, to come in,” Omagu said.

“We are not producing enough, and we cannot continue consuming imported goods while expecting the economy to be robust.”

He further called for continued investment in agriculture, infrastructure, and services, stating that these sectors will drive production.

According to Omagu, this approach will reduce import dependency and ease the pressure on foreign exchange.

“If we continue to invest in agriculture, infrastructure, and services to a reasonable extent, this will drive production, reduce imports, and alleviate the pressure on our forex,” he noted.

Omagu stressed that boosting production capacity is essential for achieving a $1 trillion economy.

“There’s no way to achieve a $1 trillion economy without focusing on boosting our production capacity,” he said.

He also highlighted several funding initiatives aimed at supporting small and medium enterprises (SMEs) and large enterprises.

“There is a N200 billion integration fund and a N50 billion grant for SMEs in rural areas. So far, we have disbursed up to 98 percent of the money, with N50,000 allocated per beneficiary. Additionally, there’s N5 billion for SMEs, available as a long-term loan at a single-digit interest rate, designed to help SMEs access crucial funding for their businesses,” he explained.

Omagu also revealed a fund for one million start-ups and large enterprises involved in production, which he said will promote job creation and increase exports.

“There is a fund for one million SMEs and another for large enterprises in manufacturing. These funds are offered at a single-digit interest rate, repayable over seven years, enabling businesses to acquire the necessary equipment for production.”

He concluded by expressing optimism that these initiatives would reduce import dependency, grow employment, and help Nigeria produce for export, thereby increasing non-oil foreign exchange inflows into the country.

Economy

Piracy and Illegal Fishing Threaten Nigeria’s $2.5tn Ocean Economy, Maritime Experts Warn

Published

16 hours ago

September 30, 2024

Bassey Marshall

Maritime stakeholders have identified piracy, illegal fishing, interstate disputes, and transnational crime as some of the factors hindering the country from achieving the $2.5tn ocean economy.

Speaking at the 2024 International Maritime Organisation World Maritime Day held in Lagos State, the Chairman of the Commission on the Limits of the Continental Shelf, Prof Larry Awosika, echoed the need for the Nigerian government to tackle these issues.

The stakeholders also outlined other challenges that demand urgent attention, particularly the smuggling of arms and narcotics.

Awosika further warned that failure to tackle these issues, which he described as security threats, could affect investment in marine exploration and tourism.

According to him, ensuring safe, secure, energy-efficient, and low-carbon maritime transport in the country is essential for the sustainable exploitation of marine resources in the country.

“Unsustainable maritime practices, including security and environmental degradation, pose significant threats to marine-based industries,” he stated.

He urged the Federal Government to prioritise safety at sea through new investments in infrastructure, science, data, and technology.

Also speaking at the event, the Minister of Marine and Blue Economy, Adegboyega Oyetola, represented by the Permanent Secretary of the ministry, Olufemi Oloruntola, called on the Federal Government to invest in upgrading facilities and building capacity to keep Nigeria competitive in global seaborne trade.

He emphasised the importance of the support of the private sector which according to him, will help elevate the country’s maritime industry.

“To ensure both shipping safety and operational efficiency, the government must invest in upgrading facilities and building capacity to keep Nigeria competitive in global seaborne trade,” Oyetola stated.

“Achieving world-class standards would require continued support from the private sector, whose collaboration is crucial in providing the resources and state-of-the-art facilities necessary to elevate Nigeria’s maritime industry,” the minister said.

Economy

FG Moves to Reduce Transportation Fares by 40%, Says CNG is Great Alternative to Petrol Crisis

Published

3 days ago

September 28, 2024

Ugwoke Ogbodo

If commercial transporters across Nigeria can buy into the Compressed Natural Gas, the Federal Government has said the hike in transportation fares will be drastically reduced.

According to the Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, the Federal Government hopes there will be over 40 per cent reduction in transportation fares through adopting CNG for commercial vehicles.

Speaking during a Memorandum of Understanding signing ceremony held in Abuja on Friday, where key stakeholders, including the National Union of Road Transport Workers from Itakpe, Adavi and Ajaokuta train station units gathered to formalise the agreement, Oluwagbemi emphasised the government’s commitment to affordable transportation amidst rising fuel costs.

Explaining how President Bola Tinubu led administration plans to tackle hike in transportation fare, Oluwagbemi said the Federal Government is working hard to bring transportation prices down, especially during these challenging times.

Describing CNG introduced by the president as a great alternative to the petrol problem, he said under the new plan, fares for six eight-passenger ger vehicles will be slashed from N12,000 to N7,,000 while fares for four-passenger ger vehicles will drop from N13,000 to N8,000 from Abuja to Ajaokuta train station.

According to him, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of the Federal Government’s infrastructure investments over the past five years.

He said the progress represents a significant savings of over 40%, adding that passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Tinubu’s intervention.

The Director of the CNG initiative noted that it is designed to encourage the conversion of existing commercial vehicles to CNG, which is sold at a discount of up to 60 per cent compared to petrol prices.

Oluwagbemi stated that the converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.

A total of ten CNG fuel conversion centres have already been established across Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations.

More stations are in the pipeline, with collaborations with Bovas to introduce additional facilities in Abuja.

The timeline for implementation is ambitious, with inspections of vehicles expected to conclude next week and conversions commencing shortly thereafter.

At the event, the Secretary of the NURTW’s Ajaokuta unit, Adeyemo Teslim, expressed gratitude for the collaboration.

Teslim revealed that joining forces will yield multifaceted benefits, which Nigerian transporters are eager to support.

The transporter highlighted the need for expanded coverage to enhance accessibility across various regions, adding that the agreement also includes an enforcement mechanism to ensure compliance with the new fare structure.