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We Can’t Sell Petrol at a Loss, NNPC Replies Marketers

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  • We Can’t Sell Petrol at a Loss, NNPC Replies Marketers

The Nigerian National Petroleum Corporation has said that it cannot sell Premium Motor Spirit, popularly called petrol, at a loss, regardless of the demands of oil marketers, as it buys the commodity at N116.28 per litre.

NNPC disclosed this while responding to claims by oil marketers that the price of PMS being sold to them (marketers) by the corporation was high and that this had led to the shutdown of many oil marketing firms nationwide.

The Depot and Petroleum Products Marketers Association of Nigeria had told our correspondent that the increase in the price of PMS sold to them by NNPC from N111 per litre to N117 per litre had made many marketers to close shop because they were not making a profit, as exclusively reported on Sunday.

The marketers also stated that a lot of jobs had been lost due to the shutdown of businesses by oil dealers, adding that this might trigger a widespread petrol crisis in the sector if not handled adequately.

“The increase from N111 per litre to N117 was done by the NNPC over a year ago and marketers have been finding it tough, which is why most marketers are no longer in business. I have written letters several times that it should be reversed and that is why a lot of marketers are no longer importing,” the Executive Secretary, DAPPMAN, Olufemi Adewole, stated.

In response to the claims by marketers, the Group General Manager, Group Public Affairs Division, NNPC, Ndu Ughamadu, told our correspondent on Sunday in Abuja that the government had made it clear that there was no plan to increase petrol price.

He further noted that the oil marketers should channel their case to the Petroleum Products Pricing Regulatory Agency, adding that the NNPC could not sell petrol at a loss, as it bought the commodity at N116.28 per litre through its Direct Sale Direct Purchase scheme.

Ughamadu said, “We have since cleared the air that there is no change in the pump price (of petrol) until the government has provided alternatives to the citizens. On DAPPMAN, they should refer their case to PPPRA who is the pricing regulator.

“As for NNPC, we buy the product at 116.28/litre from the Federation through the crude for products exchange programme or DSDP. We cannot sell at a loss. They should integrate like the majors (major oil marketers) to sell at retail outlets where there is a N6 retailers’ margin built therein instead of just stopping at depots.”

But sources at the PPPRA stated that the NNPC was the sole importer of PMS into Nigeria and had not been carrying the petroleum products pricing regulator along with respect to its (NNPC) activities when making imports.

“NNPC is the 100 per cent importer of PMS in Nigeria at the moment, but when it comes to the issue of price adjustment they will push it to the PPPRA,” a source, who pleaded not to be named due to the sensitive nature of the matter, told our correspondent in Abuja on Sunday.

The source added, “The PPPRA as the pricing regulator is meant to know who brings in what, the amount of product, allocation, etc, but unfortunately the agency is not carried along. The truth is that it is when they (NNPC) have done all their transactions that they forward the papers to PPPRA to sign.

“They claim that what they do is in the national interest. Nobody gives them allocation on what to import. In those days, there was always a quarterly meeting of stakeholders that includes private petroleum product importers, but that meeting for some time now has not held.”

DAPPMAN had argued that the government through NNPC refused to adjust the pump price of PMS despite increasing the prices which depot owners paid for the product.

Adewole said, “When we were buying it from them at N111 per litre, the pump price of PMS was N145 for a litre and when they increased it to N117, they still maintained that the pump price should be N145. Now, who bears that difference between N111 and N117?

“I want you to know that the number of marketers operating in the downstream sector has been decreasing annually since 2016. I’m not talking about people who just have offices, rather I mean petroleum product marketers who bring in or buy products and sell. This is why the sector should be deregulated.”

On whether marketers would vacate the petroleum product business should the government fail to deregulate the sector, the DAPPMAN executive said, “If I say 100 marketers were operating last year and now it is only 10 that are operating, for the remaining 90 where have they gone to?”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Delta State Gov Okowa Presents N378.48 Billion Budget for 2021

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Ifeanyi Okowa Presents N378.48 Billion Proposed Budget for 2021

The Executive Governor of Delta State, Senator (Dr) Ifeanyi Okowa, on Tuesday presented a N378.48 billion budget to the state’s House of Assembly for consideration for the 2021 fiscal year.

The budget christened “Budget of Recovery” appropriated N207.52 billion for Capital Expenditure while Recurrent Expenditure was allocated N171.32 billion.

According to the Governor, capital expenditure accounted for 54.76 percent of the budget while 45.24 percent represented recurrent expenditure.

He explained that the allocations were in line with his administration’s agenda of spending more on projects and programmes that would impact positively on the socio-economic well-being of the people of Delta.

The proposed budget for 2021 is N96.2 billion or 34.05 per cent more than the N282 billion approved for 2020.

The governor said that the 2021 budget proposals reinforced the state government’s commitment to road infrastructure, education, health, job and wealth creation programmes as the principal-drivers of the Stronger Delta agenda.

According to him, N113 billion, representing 89.94 per cent of the capital budget is allocated to the economic sector while N35 billion is allocated to the social sector; the administration sector got 10.93 billion and the regional sector, N42 billion.

“In 2021, we propose to spend N66.66 billion on Road Infrastructure; N6.79 billion on Health; Education will gulp N23.55 billion; Agriculture, N2.04 billion and Water Sector, N1.83 billion.

“Job and Wealth Creation Bureau will gulp N1 Billion and Youth Development, N1.25 billion. These key sectors are very essential in our 2021 budget,” Okowa said.

Okowa also explained that due to the negative impact of COVID-19 on the economy and the world at large, government spending was significantly affected by the global pandemic and that Delta was no exception.

The governor, therefore, stated that “the proposed 2021 Budget for Delta is primarily focused on protecting and supporting our people in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion and developing sustainably.

“Overall, the proposed 2021 Budget is predicated on inclusive economic growth that is sustainable and people-centred, with strengthening fiscal sustainability through increased efficiency in spending, improved revenue mobilization and debt sustainability.

“It also entails improving processes and systems in Public Financial Management, and Monitoring and Evaluation, to bolster better public sector service delivery.”

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Economy

FG to Create 5 Million Jobs for Nigerian Youths in the Power Sector

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Federal Government Plans to Create 5 Million Jobs for Youths in the Power Sector

The Federal Government is working on creating at least 5 million jobs for Nigerian youths in the power sector, according to the Minister of Power, Engr. Sale Mamman.

The minister, who spoke at a stakeholder meeting in Jalingo, Taraba State, said the youths should foster peace and harmony as the Federal Government, in line with some of their demands, is working on creating massive job opportunities for them in the power sector.

He said the initiative is part of president Muhammadu Buhari’s plans to lift 100 million people out of poverty within 10 years.

Mamman explained that the youths will benefit from the Siemens Presidential Power Initiative as more opportunities will be available in renewable energy, installation and the maintenance of meters.

He said: “Plans are ongoing to kick start this and it is being designed to ensure that majority of the firms and the installers are Nigerian youths. This is also part of the commitment of President Muhammadu Buhari’s focus on lifting 100 million people out of poverty within 10 years.

“From the briefings I have received so far, the youths are taking up opportunities in this aspect as well as in renewable energy. This is another way the government will be empowering young Nigerians as the local assembly; installation and the maintenance of these meters are largely handled by our industrious youths.”

“The minister urged the youths to vigilant and resist and attempt by some people to use them to incite violence for their sinister motive, noting that the Federal Government was tailoring more programmes for the youths through the Siemens Presidential Power Initiative and in building capacity on renewable energy.”

“There is the assurance of Mr. President that Nigerians will be beneficiaries of the Siemens project which will turn around the power supply situation of Nigeria. When this happens, industries will be revived and SMEs driven by youths will thrive more.”

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Economy

Lagos Loses N1 Trillion to #EndSARS Protest, a Year Budget – Gov

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Lagos Needs N1 Trillion to Fix Vandalised Infrastructure, a Year Budget – Gov

The Governor of Lagos State, Babajide Sanwo-Olu, has puts the total economic cost of past week destruction and vandalism in the state at about N1 trillion.

Sanwo-olu, who spoke with the speaker of the House of Representatives, Hon. Femi Gbajabiamila, that was on a fact-finding visit to Lagos on Sunday, said the state may spend up to N1 trillion to fix damages done to infrastructure.

Speaking on the situation, Femi Gbajabiamila, said “The House of Representatives will do all it can to compensate all those who suffered brutality including policemen that lost their lives in the process.

“Also whatever the house can do in rebuilding Lagos and other states it will do. We are now in a state of reconstruction. What must be done will be done.

“I learnt from the governor of Lagos State that it will take N1.0 trillion to rebuild what had been lost and I asked him what is the budget size of the state he said about N1.0 trillion. You can see we are moving backward.

Rotimi Akeredolu, Chairman of the South West Governors, who was part of the visit, stated, “We are indeed surprised at the extent of damage to lives and properties in Lagos. We will be right to say Lagos was turned into a war zone.

“We are deeply concerned with the ease with which public buildings, utilities, police stations and investments of our people have been burnt despite the proximity of security agencies to those areas. However, while responding to the total number of government’s buildings burnt among others,” Lagos State Commissioner for Information and Strategy, Mr Gbenga Omotoso, stated.

We are still counting. The state is still taking inventories of all that happened and not until all that is concluded we can’t not ascertained for now the total number of burnt structures. But I can tell you it’s very huge.

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