Oil Marketers Lament as Petrol Ex-depot Price Increases by 110% in Four Months
Oil marketers in Nigeria under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have decried the ex-depot price of Premium Motor Spirit (PMS) known as petrol which increased by 110 percent in four months.
According to the data report from the industry, in October, the ex-depot price read N148 per litre while in February, it recorded N312 per litre.
Investors King gathered that the stipulated price by the Nigerian National Petroleum Company Limited (NNPCL) for the depots to sell PMS to oil marketers is N148 per litre but was recently increased to N172 per litre.
In the report issued by the Major Oil Marketers Association of Nigeria, the least average ex-depot price of petrol within the four months was N303 per litre.
It explained that the lowest price of N303 per litre was seen at Apapa depots, while petrol was sold at N305 per litre in Ibafon depots. However, the highest price recorded within the timeframe was at Satellite depot for N312 per litre.
The price increase has been attributed to fuel scarcity which has made pump prices rise from N179/N180 per litre to as high as N500/litre in some places.
According to the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the price hike is as a result of rising foreign exchange rate, illegal levies, high cost of daughter vessels amongst others.
Oil Marketers have also lamented the high cost of transporting petroleum products from the depots to their stations as well as high running costs.
The IPMAN Chairman, Satellite Depot, Akin Akinrinade charged the Federal Government on the need to jerk up the rehabilitation of the nation’s refineries for massive local production.
“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.
Also speaking on the subject, Operations Controller, IPMAN Mike Osatuyi, called for the removal of fuel subsidy and deregulation in the industry to solve the fuel scarcity challenge.
“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy will be removed in June, let’s wait and see, but until then, we have to manage,” Osatuyi stated.
Nigerians Brace for N750 per Litre of Petrol as Deregulation Looms
The downstream sector of the Nigerian oil and gas industry is set to undergo complete deregulation in the coming months, and industry stakeholders are warning that Nigerians should prepare for petrol prices as high as N750 per litre at filling stations.
During an online workshop, organised by industry stakeholders in collaboration with the African Refiners and Distributors Association (ARDA), participants outlined strategies and measures that should be deployed to ensure sustainable removal of petrol subsidy.
National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Okoronkwo, warned Nigerians of the impending price hike and urged the government to channel expected savings from subsidy removal to provision of palliatives for the masses.
Although the projected pump price is likely to drop to around N500 if the government encourages the Central Bank of Nigeria (CBN) to provide foreign exchange for marketers at the official rate, the high cost of petrol will undoubtedly have a significant impact on the already struggling Nigerian economy.
Nigeria is currently struggling to find buyers for its crude oil, with strikes in the French refining sector and seasonal maintenance at plants elsewhere in Europe cutting into the Organisation of Petroleum Exporting Countries (OPEC) producer’s sales.
In light of these challenges, former Chief of Policy and Plans, Nigerian Navy, Rear Admiral Henry Babalola (rtd), called on the federal government to prosecute persons involved in oil theft for treason. Babalola expressed disappointment with the government’s poor handling of the oil theft issue, which he said was destroying the country’s revenue base.
The deregulation of the downstream sector is expected to end the wasteful petrol subsidy regime before the end of President Muhammadu Buhari’s tenure on May 29, 2023.
As Nigerians brace for the anticipated price hike, it is crucial that the government implements appropriate palliatives to alleviate the burden on the masses and ensure transparency in communication about the issue.
NASENI Solar Cell Factory to be A Game Changer in Nigeria’s Energy Sector
The National Agency for Science and Engineering Infrastructure (NASENI) which recently laid the foundation for its solar cell production factory in Gora, Nasarawa state Nigeria, has positioned to be a game changer in the nation’s energy sector.
The Executive Vice-chairman and Chief Executive of NASENI during the foundation laying ceremony Prof. Mohammad Sani Haruna disclosed that the agency has embarked on a $325,860,690 solar cells production plant to make power affordable.
He stated that the agency’s goal was to use science, innovation, and technology, to advance local contends interventions in power sector reforms.
In his words, “The cost of solar energy is still beyond the affordability of an average Nigerian hence the necessity of this project. When fully commissioned, the price per watt of solar power supply will be cheap enough to be affordable to everyone and it is a game changer in the energy and power supply industry as well as industrial development in Nigeria. This singular project has the capacity to positively change the energy status of Nigeria, the region, and the continent of Africa since it is the first of its type”.
Also present at the foundation laying ceremony, Nigeria’s Vice President Prof. Yemi Osinbajo disclosed that the solar cell production factory will lead to solar manufacturing in the country. He was also positive that the NASENI solar cell production plant will meet and surpass expectations when it becomes fully operational.
In his words,
“This landmark achievement places Nigeria within the ranks of countries pushing the boundaries in the use of climate-smart energy sources, particularly solar power. And as we have heard, this particular project is built on 10 years of work. 10 years ago, NASENI established its 7.5mw solar panel production plant. Its capacity is now 21MW. NASENI solar cell production factory in Nigeria will be a game changer, given the urgency of climate action today and the importance of developing African green energy manufacturing and solutions”.
The National Agency for Science and Engineering Infrastructure (NASENI) last year stated that it received a directive from President Muhammadu Buhari to produce more solar cells to boost Nigeria’s alternative power sources.
Investors King understands that for over 10 years, NASENI has been consistent in championing solar power as an alternative to hydro and fossil power. The agency’s target is to contribute 50 megawatts of solar energy to Nigeria’s electricity by 2023. The agency has already achieved about 21 Megawatts per annum with installed capacity through its NASENI Solar Energy Limited, a manufacturing plant located in Karshi, Abuja.
In Nigeria, the rapid population increase and the overreliance on fossil fuel have no doubt created significant environmental, health, and economic consequences which have led to severe socio-economic drawbacks.
Also, the energy deficit has led to poverty, economic decline, hardship, and several negative impacts. That is to say that a constant and stable energy supply is fundamental to the development of the country. With the commencement of the NASENI solar cell production plant and the agency’s commitment to enhance Nigeria’s energy sector, it is not far-fetched to say that the nation will record several remarkable achievements as a result of improved energy supply.
Nigeria Generates Only 5000MW, Depends on Generators for 75% Electricity –Report
Nigeria circulates about 5000 megawatts for its over 200 million population leaving generator sets to supply 75 percent of electricity needed by its people, reports have shown.
Investors King gathered that generators supply about 25,000 megawatts of power compared to the 5000 megawatts supplied by the national grid.
The recent reports from the Society for Planet and Prosperity, GCA Capital Partners and Climate Advisers Network stated that Nigeria depends largely on diesel and petrol-powered generators for electricity.
The research firms revealed their findings on power supply and consumption on Monday during a press briefing in Abuja.
They harped on measures to ensure solution to the current power supply shortage in Nigeria, calling for action on the issued recommendations.
President, Society for Planet and Prosperity, Prof. Chukwumerije Okereke, said part of the 11 suggested measures is centered on improving the generation of electricity by the national grid.
“Number one measure is to increase the generation of electricity, both on-grid and off-grid. Nigeria currently generates about 5,000MW for a population of over 200 million people.
“5,000MW is about the amount of electricity that powers Heathrow Airport (London). South Africa generates 40 gigawatts (40,000MW). India, which we should be competing with, generates over 80GW (80,000MW),” he said.
According to him, lack of constant power supply cripples the economy as it discourages local and foreign investors from investing in the country. This in turn leads to an increase in the unemployment rate.
Okereke stated that enhancing on-grid and off-grid power will significantly solve the issue of climate change and improve the economy.
Another measure mentioned was the extinction of generator sets of any kind as this will shift attention to the rapid growth of the national grid.
“So we get nearly 75 percent of our electricity in this country through generators, which is one of the most polluting sources of electricity generation. Therefore, the elimination of diesel and petrol-powered generators is the second on the list that we have identified,” he said.
Speaking on how the use of generators can be halted, the Chief Executive, GCA Capital Partners, Obi Ugochukwu, noted that it could be done by massively increasing the power generation from renewable energy sources like solar, hydro, among others.
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