Energy

Motorists, Citizens Stranded as Fresh Fuel Scarcity Rocks FCT, Others

Published

3 hours ago

September 25, 2024

Despite the production of Premium Motor Spirit, popularly known as petrol by Dangote Refinery, a fresh round of scarcity of the product has hit some parts of the country.

Earlier, Investors King had reported that independent marketers had declared that they would shun Dangote refined fuel for foreign products because they are unable to purchase petrol directly from Dangote Refinery.

To this end, many of the filling stations operated by independent marketers have shut down their facilities, thus creating queues in a few of the stations that are selling petrol.

Scores of motorists and other citizens have been experiencing difficulties purchasing PMS. The situation has also created a lucrative environment for black marketers to make exorbitant profits.

One of the affected states is the Federal Capital Territory (FCT), leaving motorists spending hours to buy petrol.

Findings showed that many filling stations in Abuja did not open, while there were long queues at the few stations that dispensed the product, particularly those operated by the Nigerian National Petroleum Company Limited (NNPCL) and some major oil marketers.

Outlets such as the NNPC mega station on the Katampe axis of the Zuba-Kubwa Expressway, AP station along Aguiyi Ironsi Street in the city centre, and NIPCO filling station also along the Zuba-Kubwa expressway, among others, had massive queues.

Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has clarified inability of independent marketers to buy directly from Dangote Refinery.

Addressing a media briefing in Lagos, PENGASSAN president, Festas Osifo, explained that the issue stems from a pricing disparity between the costs at which the NNPCL buys PMS and the prices it sells to independent marketers.

Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.

He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1,000.

He said independent marketers prefer to purchase from NNPCL to take advantage of the lower prices but noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.

Don't Miss

Marketers’ Plan To Boycott Dangote Refinery For Imported Petrol Stirs Fresh Concern In Nigeria Petroleum Sector

Ugwoke Ogbodo

Comments

Energy

Marketers’ Plan To Boycott Dangote Refinery For Imported Petrol Stirs Fresh Concern In Nigeria Petroleum Sector

Published

5 days ago

September 20, 2024

Ugwoke Ogbodo

A fresh crisis is brewing in Nigeria’s Petroleum Industry over the new price list for Premium Motor Spirit (PMS), known as petrol.

The Nigerian National Petroleum Company had announced price adjustments for its retail outlets nationwide upon lifting Dangote Petrol, saying petrol will sell between N950 to N1,019.22 per liter depending on the location.

The development had created a price controversy between Dangote Refinery and NNPC. NNPC had insisted that it bought Dangote Petrol at a per liter pump price of N898, but the 650,000 barrels per day Lagos-based refinery had disagreed with the state-owned firm.

Displeased by the price regime of Dangote Refinery and in extension, NNPC, petrol marketers considered the importation of petrol.

Investors King gathered that about 141 million liters of PMS are being conveyed to Nigeria by oil vessels by oil marketers despite the availability of Dangote Refinery petrol.

Checks revealed that the oil marketers’ move followed the full deregulation of the downstream oil sector by the Federal Government.

However, the development has angered the Crude Oil Refiners Association of Nigeria which kicked against the abandonment of local petrol for foreign products.

The Publicity Secretary of CORAN, Eche Idoko, who condemned the shipment of foreign petrol in a statement raised the alarm that some imported petrol was substandard and was blended in Malta or Togo.

He said aside from the fact that the substandard products imported to the country would cause damage, Idoko assured Nigerians that the Dangote Refinery petrol will pay them way better than the regime of importing petroleum products.

Idoko called for backward integration, saying some were afraid that Dangote would become a monopoly.

According to him, oil marketers are nursing the fear that Dangote will become a monopoly, but he noted that the mere fact Dangote subscribed to CORAN, there would never be monopoly.

He added that with the Petroleum Industry Act in place and all the agencies in play, there is no way that Dangote can become a monopoly.

Earlier, the Nigerian Midstream and Downstream Petroleum Regulatory Authority had declared that imported petrol would be subjected to three tests before being allowed to be sold across the country.

NMDPRA spokesperson, George Ene-Ita, disclosed this amid petrol import concerns.

He stressed that marketers with import licenses were free to import PMS but noted that the products must be subjected to three major tests by the agency.

The President of Dangote Group, Aliko Dangote had earlier in May 2024 stated that the commencement of his refinery will end fuel importation in Nigeria.

Energy

NLC Describes President Tinubu’s Involvement In Dangote Refinery Petrol Pricing As ‘Fraud’

Published

6 days ago

September 19, 2024

Bassey Marshall

The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has described the involvement of the President Bola Tinubu-led government in deciding the price of petrol produced by Dangote Refinery as fraud.

Ajaero spoke during a media briefing at the Murtala Muhammed Airport in Lagos on Wednesday.

According to him, the inconsistencies in policies and fraudulent actions of the Tinubu-led administration are the cause of the ongoing conflict between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.

The NLC President criticised the current administration for attempting to interfere with the operations of private entities like Dangote.

He countered the government’s attempt to dictate the price of petrol produced by Dangote, describing it as fraudulent.

Ajaero said: “In a truly deregulated market, there should be no interference in how private sector entities like Dangote operate. Imposing restrictions or dictating prices goes against the principles of a free market.

“For a locally produced product, with no reliance on imported dollars or landing costs, they’re demanding he sells it at the same price as the imported ones. That’s both fraudulent and unacceptable.

“What you’re witnessing is a mix of fraud and policy inconsistency. Nigerians were led to believe that the sector had been deregulated, and in a deregulated market, competition and choice should prevail. So why is there now an attempt to control how much Dangote should sell his product for?

“When the Port Harcourt refinery becomes operational, both NNPC and Dangote should be able to sell freely. But trying to dictate Dangote’s pricing is dishonest.

“This is the time for Nigerians to speak out. We were told that deregulation would put the private sector in charge and limit government interference in business. Now, the government is trying to regulate how private businesses should price their products.

“They expect him to sell at the same price as the imported product, even though it was produced locally without the additional landing costs. That’s outright fraud.”

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

3 weeks ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.