Fuel Importation: Assist Us With Emergency Palliatives, Oil Marketers Beg FG

Fuel Importation: Assist Us With Emergency Palliatives, Oil Marketers Beg FG

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has warned that unless the federal government provides emergency palliative measures to oil marketers for three months to enable them import fuel, the country would not face an energy crisis by January 2024. In a communiqué he read at the National Executive Council Meeting of NOGASA Thursday in Abuja, its National President, Bennet Korie, added that the situation may force many marketers to close shop. According to the Union, it will go a long way in cushioning the harsh effect of the high cost of importation and equally bring about reasonable reliefs to the business and cost of living generally. While expressing worries that the removal of fuel subsidy and the volatility of the FX market were taking its toll on oil marketers inability to access forex, Korie said there were increasing losses of lives, businesses and jobs with the accentuation by mass shut down of filling stations and packing up of petroleum tankers, all due to unattainable high cost of importation, lifting, transportation and distribution of petroleum products. “Similarly, Depot Owners are so terribly affected by the increasing cost of the crude and exchange rate to the extent that many Depots are practically deserted as their owners are unable to secure Bank loans to fund their business due to high interest rates. Banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar. Many Depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable. He insisted that owners of filling stations find it extremely difficult to secure funds to procure products for their retail outlets as both the Independent and Major Marketers were terribly affected adding that filling stations were shutting down because of their inability to secure funds to facilitate orders for their stations. The NOGASA President urged the federal government on the maintenance of roads across the country in order to make distribution of petroleum products seamless. Therefore road networks and maintenance need to be positively impactful as it will also create thousands of jobs for jobless youths and other restive people in our communities. He said the dollarization of the economy was severely harming the country as businesses are dying and the system is not helping us at all. He insisted that urgent action is highly required to save our industry from total collapse.

lPMAN supports FG on mitigating effects of fuel subsidy removal

Eteo oil Spill destroyed communities’ source of water – Rights group Health of Mother Health Foundation (HOMEF), has again decried the recent oil spills that ravaged Aleto and Eteo communities in Eleme Local Government of Rivers State, saying it has crippled farming and fishing activities in the area. HOMEF said the spills also destroyed the communities’ only source of potable water. HOMEF and members of Oilwatch Nigeria that paid a visits to the two scenes recently for an on-the-spot assessment to ascertain the level of response and possible cleanup of the affected environment said it met the environment still in a sorry situation as nothing is being done to salvage or clean the pollutions caused by the spills. A statement by HOMEF on Saturday by the Media and Communication Lead, Kome Odhomor, Executive Director, Nnimmo Bassey, expressed displeasure that the oil companies are neither decommissioning their aged infrastructure nor ensuring that their facilities are in good working condition. He regretted that rather than remediating the harm caused by their activities, more investments are being made by the oil companies to expand the areas of threat. Bassey further lamented that two months after the spill occurred, the companies have yet to respond and interface with the communities in any meaningful way. “It was heartbreaking to listen to the lamentation of the community women who now have no source of potable water and cannot process their cassava, a major staple due to the pollution of their stream. The insensitivity of the polluters and regulatory agencies is appalling. These atrocious incidents are also compounding the work of HYPREP. While the agency is working to clean some areas, these polluting incidents are threatening to erase their efforts.” During the site visits, coordinator, Peoples Advancement Centre (PAC), and member Oilwatch Nigeria Celestine Akpobari, called on NOSDRA and other relevant agencies of government to do the needful and send relief materials to the starving people immediately. “It is sad and very embarrassing that a spill of this magnitude at Eteo would happen in very close proximity to human habitation and the NPDC and the government of Nigeria carry on as if nothing has happened to the people. It is worse that the spill has affected the community's only source of drinking water. It is not enough to just sneak in at night to clamp the pipe, the right thing must be done.” While receiving the team of CSOs who visited his palace, His Royal Highness Emere Emmanuel T. Akobe the Paramount ruler of Eteo community expressed shock over the attitude of the NPDC saying, “Our beautiful stream is dead, My people don’t deserve this type of treatment and after we have brought the notice of the National Assembly, there is still no response from them, and my people continue to suffer the impact of the spill.” HOMEF reiterates that Aleto and Eteo communities and the entire Niger Delta must not be treated like disposable or sacrifice zones for profit-seeking endeavors. NOSDRA should be more proactive in meeting the challenging situations of oil spills in the region, while the polluting companies should urgently halt their polluting activities, clean up their spills, and pay compensation to affected individuals and communities. The CSOs also demanded that oil companies decommission all aged pipelines and facilities in the region in line with UNEP recommendations in the assessment of the Ogoni environment.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it is ready to support the Federal Government in mitigating the impact of subsidy removal on Nigerians. Alhaji Debo Ahmed, a former Vice Chairman, IPMAN Western zone, gave the assurance on Tuesday in Lagos. Ahmed also expressed IPMAN’s willingness to collaborate with the government in developing alternative sources of energy to alleviate the effects of subsidy removal. “We expect FG to call critical downstream stakeholders to fathom a design of alternative sources of energy and how this can go around the country within the shortest possible time. “IPMAN is ready to synergise with the government in this respect because of our spread and ability to deliver whenever called upon by the government,” he said. He highlighted the importance of exploring Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as competitive and viable options. Ahmed emphasised that IPMAN’s extensive network of filling stations could facilitate the installation of CNG and LPG facilities across the country. He called on the government to swiftly address this urgent matter by providing financial support and establishing CNG vehicle conversion centers. “It is an urgent issue that bothers on economic expediency, the government should not delay. “With this huge money realised government should be able to provide busses that use CNG and normal fossil oil but fare reduction to the barest minimum in order not to kill huge investments in the fossil oil business. “The National Gas Expansion Programme Committee should be call back to continue their good work of bringing sellers and suppliers of CNG equipment together and also the quality assurance,” Ahmed said. He suggested reviving the refineries under close government supervision and urged the National Gas Expansion Programme Committee to continue its commendable work. Mr Joe Nwakwue, an oil and gas consultant and former Chairman, SPE Nigerian Council, said that the implementation of subsidy removal requires careful planning. Nwakwue said this would ensure the timely rollout of palliatives and judicious use of the saved funds, thereby benefiting all Nigerians. He said that the subsidy savings remained the best solution, noting that its real implementation would reduce borrowing by the government. “In essence, we were hitherto funding subsidies from borrowings, the elimination should reduce the fiscal pressure to borrow;” he said. Mr Tunji Oyebanji, the Chief Executive Officer of 11 Plc said that it was obvious, that the savings was made possible because the government through NNPCL was no longer bearing the cost. According to him, the government should be wary of slipping back into the subsidy regime because prices are still rising. “It should ensure judicious use of the saved funds and the timely rollout of palliatives,” Oyebanji said. Recall that President Tinubu on Monday during a nationwide broadcast, said that for over two months, the government had saved over a trillion Naira from subsidy. Tinubu said that the money would be used more directly and more beneficially for all families. According to him, for several years, he has consistently maintained the position that the fuel subsidy has to go.

Market realities forcing price of fuel up, explains NNPC

Subsidy Removal: Northern group calls for Kyari's resignation, plans mass protest

The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent increase in the price of Premium Motor Spirit (PMS) also known as petrol to the current market realities. The company’s Group Chief Executive Officer, Malam Mele Kyari, stated this in an interview with newsmen shortly after a private meeting with the Vice President, Kashim Shettima, at the Presidential Villa, on Tuesday in Abuja. Kyari explained that the increase in the price of PMS has nothing to do with supply issue, adding that there are robust supply of the product in the country. ”I don’t have the details this moment. You know we have the Marketing Wing of the company and they adjust prices depending on the market realities. ”And this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also and this is really what we are seeing in reality; this is how the market works. ”There is no supply issue completely when you go to the market you buy the product you come to the market and sell it at prevailing market price; there is nothing to do with supply we don’t have supply issues.” ”There are robust supply, we have over 32 days’ supply in the country, that’s not a problem. What I know is that the market forces will regulate the market as prices will go down sometimes and sometimes it will go up but there will be stability of supply. He assured Nigerians that the policy was the best way for the country going forward. ”And I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when market comes. ”I know that a number of companies have imported petroleum PMS so many of them are online. Market forces have started to play, people have confidence in the market and the private sector people are now importing products. ”And there is no way they can recover their cost if they cannot take market reflective costs,” Kyari explained. On his part, Alhaji, Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority doesn’t set the price of the product but it was market determined. ”As a regulator you know I told you back in May we are not going to be setting the price as the market will determine itself and as you saw back in early June, when prices came out it was based on the cost of importation plus other logistics of distribution and of course, the profit margin by the importer. ”This market is deregulated and is open to all participants. As I mentioned also yesterday (Monday) when I was in Lagos, we have about 56 marketing companies that have applied for and obtained licenses to import. ”Out of those, 10 of them have indicated interest to supply within the third quarter which is July, August and September. And out of those already, we received some cargoes from some of these Marketers. Prudent Energy, AYM Shafa and Emadeb Cargo is arriving tomorrow (Wednesday), So, this is like just an encouragement to see that the market is liberated and everyone is free to import, so long as you are working within the framework, especially in terms of quality.” He insisted that the authority as a regulator would not put cap on the price because it was not part of those importing the product. ”But the pricing as a regulator we are not going to put the cap on the price because we are not part of those importing, we are not a marketing company, we are just a regulator. ”So when you say market forces are working basically what it means is that you can see the price of the Crude Oil going up, couple of week ago recovering around 70 dollars per barrel now is around 80 dollars per barrel ”So of course, the crude price also drives the product price; you know because the imposters are importing they are basing it on the course of importation plus other cost element in terms of local distribution,” he said.