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PPPRA lauds Nigeria’s policy on LPG production

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The Petroleum Products Pricing Regulatory Agency (PPPRA) has lauded the enabling environment created by Federal Government through its programmes and policies to attract investment into the Liquefied Petroleum Gas (LPG) value chain.

PPPRA listed government policies and programmes responsible for  quantum of investments seen in gas industry as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and Decade of Gas declaration.

A statement by its General Manager, Corporate Services, Mr Kimchi Apollo, on Sunday said Nigeria presently produces locally a major portion of the LPG consumed in the country.

The PPPRA report on LPG supplied in September indicates that out of the 76,578.986 metric tonnes (MT) of LPG supplied nationwide, 49,453.081MT was locally produced while 27,125.905MT was imported.

Apollo noted that in the month of September, PPPRA LPG data showed that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Ltd.

The General Manager explained  that 49,453.081MT was supplied into domestic market with 66.58 per cent of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.

“It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT.

“The marked improvement in local production reflects the success of President Muhammadu Buhari and Minister of State for Petroleum Resources, Chief Timipre Sylva in providing the right enabling business climate for the Gas industry to thrive,” he noted.

He further emphasised that government policies and programmes such as the NGP, NGFCP, NGEP and Decade of Gas declaration were responsible for quantum of investments seen currently in gas industry.

Some of these investments according to him include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.

In terms of polices, he said the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG had indeed heightened the prospects of domestic investment in the sector.

In addition, he pointed out that a Pioneer Status Incentive for some categories of LPG Investments was also introduced.

He expressed PPPRA’s continuous commitment towards the development of Nigeria’s vast gas resources and strengthening the entire value chain.

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PPPRA explains petrol pricing guidelines

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Moses Uwagbale

The Petroleum Products Pricing Regulation Agency (PPPRA) has explained that the March guiding prices posted on its website does not translate to increase in the pump price of  Premium Motor Spirit (PMS) also known as petrol.

The PPPRA Executive Secretary, Mr Abdulkadir Saidu, said in a statement in Abuja, that the, “the attention of PPPRA has been drawn to speculations about the increased pump price of PMS’’.

“The PPPRA by this release wishes to state clearly that the guiding prices which was posted on our website was only indicative of current market trends and do not translate to any increase in pump price of PMS.

“ However, publications by the media to this effect have been misconstrued and thus misleading,’’ he said.

He said that the introduction of the market-based pricing regime for PMS Regulation 2020 was gazetted by the Federal Government.

According to him, based on this regulation, prices are expected to be determined by market realities in line with the dictates of market forces.

“One of the conditions for the implementation of the Market-Based Pricing Regime for PMS Regulation 2020 is the monthly release of guiding price to reflect current market fundamentals.

“The PPPRA in line with its mandate to maintain constant surveillance over all key indices relevant to pricing policy, monitors market trends on a daily basis to determine Guiding Prices,’’ he said.

Saidu said that the agency was not unaware of the challenges with the supply of PMS due to some concerns leading NNPC to be the sole importer of PMS.

“PPPRA is also mindful of the current discussion going on between the government and the Organised Labour on the deregulation policy.

“While consultation with relevant stakeholders is ongoing, PPPRA does not fix or announce prices and therefore there is no price increase.

“The current PMS price is being maintained while consultations are being concluded.

“Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,’’ he added.

Saidu assured the public of adequate products supply as the average PMS Day-Sufficiency as of March 11, 2021 was over 35 days.

“The PPPRA pledges to continue to perform its statutory function in ensuring that the downstream sector remains vibrant as well as support both government and members of the public,’’ he said.