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Association calls for repair of refineries to remedy subsidy removal

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Onitsha (Anambra), June 30, 2023: The National President, Heavy Duty Truck Drivers Association, Mr Uche Nebuwa, has said that there would not be any remedy to the hike in pump price of fuel caused by subsidy removal unless old refineries were repaired.

Nebuwa stated this during the inauguration of Uzoeghelu General Motor Park, at Ugwu Nwasike/Nkwo market, along Old Onitsha-Enugu road, Ogidi, Idemili North Local Government Area, Anambra, on Thursday.

He described the hike as a big problem to them in the transportation industry and the society at large.

According to him, fuel hike is a very big problem to us transporters, President Bola Tinubu would have consulted us before the removal of the fuel subsidy.

“No palliatives will solve this issue of hike in fuel pump price except the old refineries are repaired.

“The alleged distribution of solar lights as palliatives would not have any positive effect on Nigerians rather it will worsened the situation.

“They just introduced that to calm frayed nerves for now but it will not work as everybody is crying and it has also caused more harm than good to the present socio-political and economic quagmire that we are trying to set ourselves free from,” he said.

Speaking on the inauguration of the park, he said that it was part of the state government resolve to create decorum on the road.

He warned that no touts are tolerated in the park as it is meant for travellers within and outside the State.

On his part, Mr Augustine Udeozor, the Zonal Chairman, Southeast National Union of Road Transport Workers, (NURTW), said that the issue of hike in fuel has become a general disease that should be removed from top.

“It is a general disease that can only be cured by the Federal Government, because the masses are suffering.

“Something should be done immediately to alleviate the suffering imposed on us in the name of making effort to rectify the socio-economic and political quagmire,” he stressed.

“So the inauguration of the park is not the issue but what one is capable of doing, how many vehicles you brought, how many passengers you attracted,” he said.

Earlier, Mr Obiegbu ikeobi, the chairman, Njikoka Local Government Area Road Transport Employers Association of Nigeria, said that they inaugurated a very massive park, business will start fully tomorrow.

petrol

Why petrol consumption drops in Nigeria

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The average volume of Premium Motor Spirit (PMS) aka petrol consumption in Nigeria has crashed from 66 million litres per day (ml/d) to over 40 ml/d in June 2023 for several reasons.

According to the Major Marketers Association of Nigeria (MOMAN) Executive Secretary, Clement Isong, the drop was because customers adjusted their lifestyle.

Speaking with The Nation, he also noted  the consumption declined by over 20% because the prices soared  and Nigeria’s neighbours to whom it was illegally exported have resorted to alternative supply.

Isong, however, warned that one cannot be certain of the actual daily consumption volume unless the market stabilises.

His words: “What we are hearing is that the consumption came down. It used to be 66million litres per day for the country but it came down to just over 40 million litres per day.

 “But there are many reasons why it came down: People are still adjusting their lifestyle. The price has also gone up in many countries because in some countries their supply was coming from Nigeria.

They have all developed alternative supply. So a lot of their volumes were coming from and will still come from Nigeria until they develop less alternative ways for themselves.

” It is only after they have developed, when the market settles that we will know what Nigeria’s volumes will be. 

Also, remember that we are building a couple of refineries in Nigeria. So, we will have legitimate export of product once we have satisfied our national demand.

Too, I will say averagely in the month of June, supply is down by 20% to just over 40ml/day. But it is still not Uhuru. It is not the final position.”

The Executive Secretary insisted that the petrol market will keep adjusting until it stabilises.

He allayed fears over shortage of supply, noting the Nigerian National Petroleum Company Limited (NNPCL) has placed an order for the importation of surplus vessels of petrol that are already offshore.

He revealed to The Nation that some major marketers have ordered for supply of PMS.

Nation

chevron-exxon-mobil-lag-crude-oil-as-energy-momentum-slows

Court declines Mobil’s plea for an order stopping NMDPRA’s sanction

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Abuja, June 28, 2023: The Federal High Court, Abuja, on Tuesday, refused to grant Mobil Producing Nigeria Unlimited’s prayer for an order restraining the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from imposing any sanction on it.

The sanction in respect of its operations in Oil Mining Leases 67,68,70 and 104 pending the hearing and determination of the motion on notice for interlocutory injunction.

Justice Inyang Ekwo, in a ruling on the motion ex-parte moved by counsel to Mobil, Ituah Imhanze, rather ordered the plaintiff to put NMDPRA, the sole defendant in the suit, on notice.

Justice Ekwo, who directed the NMDPRA to show cause on the next adjourned date why Mobil’s prayers ought not to be granted, also ordered the plaintiff to serve the defendant with all the processes in the matter.

The judge adjourned the matter until July 5 for hearing.

The oil giant, had, in the ex-parte motion marked: FHC/ABJ/CS/844/2023,  sued NMDPRA.

In the motion dated June 16 and filed June 19 by its lawyer, Prof. Fabian Ajogwu, SAN, Mobil prayed for two orders.

Giving seven grounds why its motion should be granted, the lawyer argued that the company is the operator of the Nigerian National Petroleum Company Limited (NNPC Ltd}/ MPN Joint Venture in OMLs 67, 68, 70 and 104 and its field facilities and operating facilities are interconnected by a network of pipelines with high degree of dependency and integration.

Ajogwu argued that the Petroleum Industry Act by virtue of Section 8 (d) and 318 provided that the Nigerian Upstream Petroleum Regulatory Commission should consider and be in charge of integrated operations and should consider integrated operations as upstream operations and grant relevant approvals in that regard.

He said that Mobile made an official application to the Nigerian Upstream Petroleum Regulatory Commission for consideration as an integrated operation via a letter dated Dec. 6, 2022.

“The application was considered and approved by the Nigerian Upstream Petroleum Regulatory Commission, the only statutorily appropriate authority and the approval communicated to the plaintiff/applicant via a letter dated Feb. 2, 2023,” he said.

Ajogwu, however, said that the NMDPRA, sought to nullify the approval granted by the commission, claiming oversight functions over aspects of the Mobil’s integrated operations which the Nigerian Upstream Petroleum Regulatory Commission, by its letter of Feb. 2, had already claimed oversight authority and granted approval on.

The senior lawyer alleged that NMDPRA further threatened to sanction the oil company, its chairman and managing director and any other officer for any contravention of its directives or regulations.

He further alleged that a conflict had thereby ensued from the regulatory bodies claiming oversight over integrated petroleum operations which Mobil currently operates.

Ajogwu, who accused NMDPRA of ramping up pressure on his client to comply with its directives and submit to its regulatory authority, also alleged that the defendant had further made damning allegations of economic sabotage and crude oil theft against Mobil.

He prayed the court to grant their reliefs to ensure that Mobil’s “operations are not jeopardised by heavy and unlawful sanctions, and reputational damage by the defendant.”

Nigeria has no plan to remove fuel subsidy

Fuel subsidy removal collapses thriving market in West African nations

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Nigeria’s decision to eliminate fuel subsidies has had a significant impact, resulting in the collapse of a thriving black market in West African nations.

This informal sector, which played a central role in the region’s economic activity, has been disrupted as the price of cheap contraband Premium Motor Spirit, better known as petrol, from Nigeria suddenly doubled.

In a report on Monday, American news platform, Reuters, noted that black market fuel vendors and commercial drivers in Cameroon, Benin and Togo, who heavily relied on smuggled petrol from Nigeria, have witnessed their businesses crumble since the subsidy removal.

As fuel supplies dwindle, long queues have formed at official petrol stations, where prices are now competitive.

In Garoua, a town in North-West Cameroon near the Nigerian border, the cost of a litre of petrol on the black market used to be around 300 CFA francs (about $0.48) but it has skyrocketed to a minimum of 600 CFA francs, causing dissatisfaction among customers who perceive the high prices as unjustified.

The repercussions extend to commercial motorcycles, or okada, leading to conflicts between hand-to-mouth riders and customers demanding low fares, regardless of the circumstances.

Ousmanou Mal Djoulde, a rider in Garoua, has been forced to more than double his fares, resulting in many customers refusing to pay and business becoming painfully slow, Reuters reported.

The trade in black market fuel holds such significance in the local economy that authorities either turn a blind eye or are complicit. A Reuters reporter in Garoua observed a Cameroonian customs officer seated on a motorcycle being refuelled with smuggled Nigerian petrol.

Unfortunately, there is no reliable data on the volume of fuel smuggled from Nigeria. The head of Nigerian National Petroleum Corporation, Mele Kyari, acknowledged that 66 million litres of petrol leave their depots daily, but he could not provide an accurate estimate of local consumption. Smuggling is acknowledged to be rampant.

According to Reuters, Benin and Togo, neighbouring nations to the west of Nigeria, have also witnessed a decline in supplies and customers for contraband fuel vendors, while official petrol stations have experienced a sudden surge in activity.

At the Hilacondji border crossing between Togo and Benin, some black market fuel stalls have closed, leaving vendors waiting with empty containers for potential deliveries.

In the absence of improvements, some individuals have sought alternative livelihoods such as fishing or engaging in other small businesses. The closure of informal fuel depots has left previously employed individuals without work, adding to the unemployment rate.

According to the United Nations, over 80% of employment in Africa is in the informal sector, making it a crucial driver of economic activity. In Cotonou, the commercial capital of Benin, located about 60 km from Nigeria, long queues have formed at official petrol stations, and some have struggled to meet the sudden surge in demand, particularly from commercial motorcyclist, locally known as “zemidjan.”

A worker at the JNP fuel station in Cotonou, named Janvier, reported that their daily sales have increased from around 2,000 litres to up to 7,000 litres. However, the heightened demand has caused supply shortages, forcing them to turn away customers.

Punch

https://punchng.com/vibrant-west-africas-fuel-black-market-collapses-on-nigerias-subsidy-removal/

oil marketers

NMDPRA seals-up 50 filling stations in Kogi

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Lokoja, June 27, 2023: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Monday sealed up 50 filling stations for operating without storage and sales licenses.

The Kogi state Coordinator of the authority, Mr Ogbe Godwin, led a task-force, which went round the state on routine checks of the operations of the filling stations.

Out of the 50 stations sealed up, five were under dispensing Premium Motor Spirit (PMS), popularly called petrol, to customers including I.A.Muye located at Nataco; Biodun and Associates filling station; Total filling station Felele; Calma global solutions along Ganaja road; NNPC mega station after commissioners quarters, Ganaja road; and Nipco filling station located in Phase I Lokoja.

Godwin explained that the action of the agency was in line with the Federal Government directives that marketers must apply online and obtain their stations license in line with the guidelines as enshrined in the Petroleum Inspectorate Act before dispensing products to the public.

The coordinator, who acknowledged the impact of the fuel subsidy removal on Nigerians, said: “have discovered some sharp practices by petroleum marketers in the state which necessitated our action and immediate sanctioned.

“We are calling on the general public to report to us any petroleum marketer under dispensing fuel across the 21 local governments of Kogi.

“It’s unfortunate that of the reports making the round that we have been compromised from doing our work as regulating agency.

“I want to assure the public that NMDPRA will continue to monitor the sale of premium motor spirit and to ensure that those engaging in sharp practices are brought to book”.

He said that the affected 50 stations must pay fines for the infraction into the federation account as appropriate and also those without license or operating illegally shall also face the full wrath of the law.

While affirming that the sanitation or surveillance is a continuous process, Godwin said: “We will not rest until NMDPRA clamp down on all oil marketers engaging in sharp practices in the state.”

“As a reputable Government agency, we won’t fold our arms and allow some selfish elements to sabotage government effort at ameliorating the sufferings of the masses,” he warned.

stealing-oil

Oil theft camps in Bayelsa fall in military offensive

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Abuja, June 27, 2023: Troops of the Nigerian Army have raided camps suspected to belong to unrepentant militants and illegal oil bunkering in Bayelsa creeks and captured an armoury.

The Director of Army Public Relations, Brig.-Gen. Onyema Nwachukwu, made this known in a statement on Monday in Abuja.

Nwachukwu said the operation was undertaken by troops of 5 Battalion operating under 16 Brigade on Sunday, at Azuzuama Community in Ijaw South Local Government Area of Bayelsa.

He said the troops subdued the suspected militants during the operation with superior firepower and compelled them to abandon their camp in disarray.

According to him, the well-conducted raid operation led to the recovery of five AK 47 Rifles, two  rocket propelled grenade bombs,and four rocket grenade bomb chargers.

He said that the troops also recovered seven 7.62mm special ammunition, 14 AK 47 Rifle magazines and one pumping machine.

“Other items recovered include two 16-inch anchored verve, one mallet hammer, one pipe range spinner and one axe.

“The illicit camp has been destroyed by the troops.

“The Nigerian Army wishes to express appreciation to members of the public and urges all to continue to provide timely and credible information.

“This will support the ongoing effort by the Nigerian Army to ensure that oil theft in the South-South region comes to zero level,” he said.

gas-cylinder

Price of 5kg cooking drops to N4,360.69 in May

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Abuja, June 26, 2023: The National Bureau of Statistics (NBS), says the average price of 5kg of cooking gas reduced from N4,642.27 recorded in April 2023 to N4,360.69 in May 2023.

This is contained in the Bureau’s “Cooking Gas Price Watch’’ for May 2023 released  in Abuja.

The report said the May 2023 price represented a 6.07 per cent increase, compared to what was obtained in April 2023.

It said on a year-on-year basis, the increase was 11.20 per cent from N3,921.35 recorded in May 2022.

On state profile analysis, the report showed that Bayelsa recorded the highest average price of N5,016.67 for 5kg Cooking Gas, followed by Zamfara at N5,000.00, and Abuja at N4,900.00.

It said on the other hand, Ondo recorded the lowest price at N3,795.83, followed by Nasarawa and Edo at N3,800.00 and N3,837.14, respectively.

Analysis by zone showed that the North-Central recorded the highest average retail price of N4,712.85, followed by the North-West at N4,550.04.

“The South-East recorded the lowest retail price at N4,078.50,” the NBS said.

The report said the average retail price for refilling a 12.5kg cooking gas reduced by 7.61 per cent on a month-on-month basis from N10,323.33 in April 2023 to N9,537.89 in May 2023.

“On a year-on-year basis, this rose by 9.30 per cent from N8,726.30 recorded in May 2022 to N9,537.89 in May 2023.”

State profile analysis showed that Cross River recorded the highest average retail price of N11,083.33 for 12.5kg cooking gas, followed by Jigawa at N10,975.00 and Akwa Ibom at N10,174.29.

On the other hand, the report showed that the lowest average price of 12.5kg of cooking gas was recorded in Adamawa at N7,925.00, followed by Zamfara and Borno at N8,128.57 and N8,200.00, respectively.

Analysis by zone showed that the South-South recorded the highest average retail price for refilling a 12.5kg cooking gas at N10,042.60, followed by the South-West at N9,616.89.

The report said the North-East recorded the lowest price with N8,908.30.

Similarly, the average retail price per litre of Kerosene rose to N1,206.05 paid in May 2023, on a month-on-month basis, showing an increase of 3.91 per cent, compared to N1,160.67 recorded in April 2023.

According to its National Kerosene Price Watch for May 2023, on a year-on-year basis, the average retail price per litre of kerosene rose by 77.48 per cent from N679.54 in May 2022.

On state profile analysis, the report showed that the highest average price per litre in May 2023 was recorded in Adamawa at N1,788.88, followed by Abuja at N1,445.50 and Abia at N1,396.66.

“On the other hand, the lowest price was recorded in Edo at N972.35, followed by Kebbi at N991.04 and Zamfara at N1,018.51.”

The NBS said the analysis further showed that the South-East recorded the highest average retail price per litre of kerosene at N1,351.55, followed by the North-East at N1,326.45.

It said the North-West recorded the lowest average retail price per litre of kerosene at N1,070.06.

The report said the average retail price per gallon of kerosene paid by consumers in May 2023 was N4,208.27, indicating a 0.99 per cent increase from N4,166.94 recorded in April 2023.

“On a year-on-year basis, the average price per gallon of kerosene increased by 78.44 per cent from N2,358.30 recorded in May 2022.”

oilgas

Chamber engages Gazprom, African communities on gas utilisation, development

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Abuja, June 23, 2023: The African Energy Chamber has urged Gazprom, Russian energy company, and African communities to drive gas development and utilisation in Africa.

The energy chamber decried the fact that 600 million people across Africa lacked access to electricity while 900 million, especially women lacked access to clean cooking technologies.

Mr NJ Ayuk, Chairman, African Energy Chamber, made this known on Thursday at an International Roundtable on, “The Benefits of Natural Gas for the Population and Economy.”

The event, which was broadcast online in Johannesburg, South Africa, was organised by the Chamber with the support of Gazprom.

In an address, Ayuk emphasised the need for African communities to figure out how to have credible partners to drive a gas story for power generation, job creation, employment and industrialisation, among others in Africa.

He said globally, Africa possessed 13 per cent natural gas but remained the most under-explored and under-developed gas basin in the world.

“It is no longer acceptable that young Africans, their only hope has to be to cross the Mediterranean Sea or Sahara to look for prosperity in wealthy nations. We have it and we have to harness it.

“We believe that climate change and energy poverty are two sides of the same coin. So, we need to deal with both,” Ayuk said.

He implored Gazprom and all African communities to drive the gas story because it would not just be a transition fuel for Africa but future fuel.

“We have Mozambique, it could go from zero to the third largest gas producer in the world; we have got Nigeria with 200 plus Trillion Cubic Feet (TCF) of gas, we need to harness it and stop flaring it.

“We have Congo-Brazzaville with amazing TCF of gas, Senegal, Libya and Namibia with great new discoveries among others,” he said.

He, however, called on Africans to embrace the skills, technologies and willpower that Gazprom utilised to power the entire Russia with natural gas and kept developing.

Ayuk expressed dissatisfaction that Africa’s most industrialised nation, South Africa, was experiencing 10 hours without electricity daily when abundant natural gas existed around South Africa.

“We need to unleash the potential and open up the basin,” he added.

He thanked Gazprom, for its collaboration to tackle Africa’s most critical issues and drive the message across Africa for solution and improvement.

Ambassador of the Russian Federation to South Africa, Ilya Rogachev, who urged Gazprom to assist South Africa to mitigate its energy challenge, underscored the need to foster more advanced complex economic collaboration than increasing the volume of bilateral trade.

Mr Dmitry Khandoga, Head of Delegation of PJSC Gazprom, also dwelt on the activities of Gazprom group, including exploration, extraction, transportation, storage, domestic consumption and Liquefied Natural Gas (LNG) projects.

Khandoga said with the growing number of Africa’s population, food security and energy security needed to be addressed.

Mr Dahiru Moyi, Advisor to the Nigerian Ministry of Finance, Budget and National Planning, sought the assistance of Gazprom in developing its mobile gas facility in Africa.

“Gazprom mobile gas can be deployed in Africa, we should not wait for pipelines, Nigeria is ready for business and Gazprom is welcome to the negotiation table,” he said.

Moyi explained that there was no policy when Gazprom came to Nigeria for business in the past, but he assured that the Petroleum Industry Act passed in 2021, had a clear path on oil and gas business and investment.

According to him, when gas is developed in Nigeria, it will be easier to penetrate through Mozambique because Nigeria has a massive reach.

The roundtable also dwelt on the role of natural gas in the 21st century and development of gas infrastructure for poverty eradication, sustainable development, for safe environment and for gas-fired power generation and motor fuel.

It also discussed importing and exporting energy, energy mix in different African countries, long-term planning in the gas industry and gas technologies.

The roundtable brought together leading energy industry representatives from government regulators, business, the expert community and media from South Africa, Algeria, Angola, Ghana, Egypt, Nigeria, Morocco and Kenya, among others.

PJSC Gazprom, Russian majority state-owned multinational energy corporation, headquartered in Saint Petersburg, is ranked as the largest publicly listed natural gas company in the world and the largest company in Russia by revenue.

petrol-station-shutterstock-410510926

Petrol price drops slightly to N238.11 per litre in May

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Abuja, June 21, 2023: The National Bureau of Statistics (NBS) says the average retail price of a litre of petrol witnessed a drop from N254.06 in April to N238.11 in May 2023.

This is according to the NBS Petrol Price Watch for May 2023 released in Abuja on Wednesday.

It stated that the May 2023 price of N238.11 represented a 6.28 per cent decrease over the price of N254.06 recorded in April 2023.

However, the average retail price of a litre of petrol increased on a year-on-year basis from N173.08 recorded in May 2022 to N238.11 in May 2023.

It stated that the May 2023 price of N238.11 represented a 37.57 per cent increase over the price of N173.08 recorded in May 2022.

“On state profiles analysis, Imo paid the highest average retail price of N300.00 per litre, followed by Gombe at N299.77 and Jigawa at N297.50

“Conversely, Abuja paid the lowest average retail price of N195.00 per litre, followed by Niger at N201.82 and Plateau at N203.33,” it stated.

Analysis by zone showed that the South-East recorded the highest average retail price in May 2023 at N256.64, while the North-Central recorded the lowest at N208.74.

The NBS also stated in its Diesel Price Watch Report for May 2023 that the average retail price paid by consumers increased by 25.81 per cent on a year-on-year basis.

It explained that the retail price moved from a lower cost of N671.08 per litre recorded in May 2022 to a higher cost of N844.28 per litre in May 2023.

On a month-on-month basis, the price increased by 0.24 per cent from N842.25 per litre recorded in April 2023 to an average of N844.28 in May 2023,” it added.

On state profiles analysis, the report said the highest average price of diesel in May 2023 was recorded in Adamawa at N970.00 per litre, followed by Bauchi at N940.00, and Taraba at N915.50.

On the other hand, the lowest price was recorded in Bayelsa at N736.88 per litre, followed by Delta at N772.50 and Anambra at N775.71.

In addition, the analysis by zone showed that the North-East had the highest price at N908.02 per litre, while the South-South Zone recorded the lowest price at N809.62 per litre.

oil-and-gas

Czech Republic seeks enhanced access to Nigeria’s oil, gas

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Abuja, June 20, 2023: Czech Republic has held discussions with Nigeria to enhance its access to the oil and gas resources of the country.

The Permanent Secretary, Ministry of Petroleum Resources, Amb. Gabriel Aduda, said this in a statement on Monday after a bilateral meeting with Mr Jozef Sileka, Minister of Trade, Czech Republic.

He said the discussions focused on Czech Republic’s interest in establishing a government-to-government business agreement with Nigeria to enhance their access to oil and gas resources through new partnerships and suppliers.

Aduda assured the Czech official of Nigeria’s openness to engagement and recommended submitting an official request through the Czech embassy in Nigeria, outlining their requirements.

He showcased Nigeria’s commitment to exploring collaborative opportunities, promoting sustainability, and safeguarding its energy security.

The bilateral meeting held on the sidelines of the Global Energy Show in Calgary, Canada and discussions focused on energy safety, affordability, security, and sustainability across the value chain.

Aduda expressed Nigeria’s willingness to collaborate, highlighting the increasing number of Nigerian expatriates already contributing to the Oil and Gas Industry in the province.

He emphasised Nigeria’s interest in capacity enhancement and the adoption of carbon capture and storage technologies.

In a meeting with the Nigerian Business Community in Alberta, Canada, Aduda said Nigeria was an attractive investment destination amid the global shift away from carbon-based fuels.

He reassured the community that Nigeria was prepared for investment, citing the recent removal of subsidies in the downstream petroleum sector.

The permanent secretary said the government’s focus on gas as a transitional fuel, presented significant opportunities for businesses in the sector.

Aduda also highlighted the establishment of the Midstream Gas Infrastructure Fund and a N250 billion Central Bank of Nigeria (CBN) Intervention Fund dedicated to gas expansion and domestication initiatives.

At a ministerial panel discussion, Aduda expressed Nigeria’s concerns, regarding the volatility and uncertainty in oil prices as a result of Russian’s invasion of Ukraine.

“Nigeria heavily depends on oil exports for revenue generation, making any sharp decline in prices detrimental to the country’s economy,” he said.

He stressed the importance of ensuring a stable and reliable energy supply to sustain economic growth and meet the energy needs of Nigeria’s rapidly growing population.

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