FG’s approval for private importers will crash fuel price, says IPMAN

IPMAN FUEL

The Independent Petroleum Marketers Association of Nigeria (IPMAN), has commended the Federal Government for approving the importation of petroleum products by private firms. Mr. Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, in charge of Anambra, Ebonyi and Enugu States, said this while reacting to the development in Awka on Sunday. The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, on Friday, said private marketers could now import petrol into the country. Farouk said under the new arrangement, the NNPCL had ceased to be the sole importer of petrol into Nigeria. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to any prospective importer. “The market is now open for everybody that wants to import as far as they meet all the requirements. The NMDPRA will no longer fix prices or release templates for petrol. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. Anyaso said this was a positive development and appropriate responses to the demands of marketers and Nigerian masses who had condemned the monopolistic grip of NNPCL on the oil and gas sector for decades. He said this would create the much needed competitive pricing environment and allow market forces to demand price of products. According to him, “two days ago, I repeated the call that the Federal Government should issue import licences to private investigators, I also said it is wrong for the NNPCL, which is a private company, to be the sole importer and determiner of prices. “I am happy that the same NMDPRA also announced that approval has been given to private importers. This is how it should be in a deregulated Industry. “The competition that will begin in the coming days will surely ease the pain of high prices of products,” he said. Anyaso commended the Federal Government for its bold step and called on it to extend the same to refineries to complement the contributions of Dangote refinery when it commenced production. He said the four existing refineries should be repaired to produce at optimal capacity while licences are issued to more people who could build modular refineries. He said this was the time to address the problem of Enugu Depot which had been moribund for over 15 years and had made distribution of products in the zone difficult as a result. “We are appealing that as the government is addressing the issue of supply, they should also address the problem of distribution, Enugu Depot has not functioned for over 15 years, we need the Federal Government to fix it. “It has not been easy for our members who source products from Lagos, Warri, Calabar and bring by road, the risk, accident and losses have been too much,” he said.

Subsidy Removal: NLC rejects new fuel pump price template

NNPC FILL STATION

The Nigeria Labour Congress (NLC) has urged the Federal Government to immediately instruct the Nigerian Petroleum Company Ltd (NNPCL) to withdraw the just released pricing template to allow free flow of discussions by all parties. Mr Joe Ajaero, the NLC President, made the call in a statement signed by him and made available to newsmen on Wednesday in Abuja. Ajaero said that the new pricing template is vexatious, an ambush and may scuttle its ongoing dialogue with the federal government. According to Ajaero, government cannot in one breathe be talking about deregulation and at the same time fixing the prices of petroleum products. “We are worried that the Government through the NNPC despite the ongoing meeting of stakeholders in the Oil and Gas sector to manage the unilateral. “But unfortunate announcement by the President to withdraw subsidy on petroleum products, went ahead this morning to announce a new regime of prices under a new pricing template. “This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector. “This negates the spirit of allowing the operation of the free market unless the government has, as usual, usurped, captured or become market forces. “It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement,” he said. He added that what the government has done is like holding a gun to the head of Nigerian people and bring undue pressure on the leaders, thus undermine the dialogue. The NLC president said that Nigerians would not accept any manipulation of any kind from any of the parties, especially from the representatives of the government. “Our commitment to this process is buoyed on the fact that all the parties would be committed to ensuring that it is carried out within the ambits of liberty without undue pressure. “The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered. It is clear that Government is actually trying to scuttle the process. “As it stands, the federal government has become fixated on their chosen course of action. Would this help this dialogue? It clearly will not. “There must be flexibility to allow concessions and reasonable accommodation that will produce the best result for Nigerian people. This is what we all seek at this time,” he said. 

Nigerians groan as Presidency, NNPCL hike fuel pump price to N555PL

Pic Fuel Queue At Filling Stations In Lagos

Details of the Tuesday meeting between President Bola Tinubu and the Group Chief Executive Officer of the Nigeria National Petroleum Company limited (NNPCL), Malam Mele Kyari,  has emerged as the company has rolled out template for new pump price per litre nationwide. Malam Kyari had on Tuesday had a closed door meeting with President Tinubu, following the controversy generated by inaugural speech comment on removal of fuel subsidy. Template for hike in fuel pump price per litre as categorized according to geopolitical zone effective, 31 May, 2023. Under the new prices depending on geopolitical zone, a price per litre will not cost less than N488  but will cost at most N555. The NNPCL has also directed dealers to reflect the new pump price in the respective geopolitical zones effective today, 31 May, 2023, in line with the released price templated. “Please implement meter change as approved effective today 31st May 2023. Wayne is to attend to all locations as relates to their area of coverage in our network”, the directive stated. A statement by Garba Muhammad, Chief Corporate Communications Officer NNPC Limited said as it strives to provide quality service which the company was known for, prices would continue to fluctuate to reflect market dynamics. “The NNPC Ltd. wishes to inform our esteemed customers that we have adjusted our pump price of PMS across our retail outlets, in line with the current market realities. “We assure you that NNPC Ltd. is committed to ensuring ceaseless supply of products. “The Company sincerely regrets any inconvenience this development might have caused,” Muhammad said. He appreciated the continued patronage, support and understanding of its customers through this time of change and growth. The sudden increase in pump price per litre contradicted President Tinubu’s explanations of his inuagural speech comment on immediate removal of fuel Subsidy. He had on Tuesday said that the removal would take effect end of June, 2023, in attempt to allay fears and tempers heightened by acute shortage of fuel and hike in prices by dealers following his inaugural speech comment of fuel Subsidy removal. Nationwide, following his inaugural speech, queues have returned to the fueling stations. While dealers who are open for operations have hike their pump price up to between N600-N700 per litre, just as most filling stations closed shop. Commuters nationwide have been stranded as transporters have hiked the fares resulting to chaotic situation just two days on assumption of office by President Tinubu. Reports indicate that motorists who had queued up overnight for fuel now refused to buy at the newly reflected high pump price per litre.

Dangote refinery will address supply shortages, price hikes – IPMAN

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.

*Calls for revival of all moribund refineries in Nigeria The new Dangote refinery will address issues of fuel shortages and price hikes in the country, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said. Chairman of IPMAN, Enugu Community depot in charge of Anambra, Ebonyi and Enugu states, said in an interview that the 18.5 billion dollar Dangote refinery, with 650, 000 barrel production capacity which was inaugurated by President Muhammadu Buhari on Monday, will go a long way in repositioning the country’s economy.. Anyaso however envisaged an initial increase in fuel pump price, but said it would decrease in the long run. “They will buy locally, refine and sell locally and we will no longer need forex to import products but rather, it will sell refined products and earn us forex. “It is a welcome development,” he said. The IPMAN chairman urged the Federal Government to revive its four refineries and optimise their production to support what Dangote would produce, to ensure full sufficiency of the products.  He thanked the President Muhammadu Buhari administration for signing the Petroleum Industry Act (PIA) which encouraged private sector investment in the oil and gas industry. Anyaso cautioned against monopoly, saying it would leave Nigerians worse off if left at the mercy of one supplier. “We need more players to come in because the market is there, so there should be competition; the Federal Government should ensure a monopoly is not created. “The PIA which this administration graciously signed encourages private sector involvement, people who have the capacity should be encouraged to follow the Dangote example,” he added. Anyaso called for revitalisation and operationalisation of all moribund depots, including that of Enugu for easy distribution of petroleum products. He said this would reduce the challenges of sourcing products and drive down prices.