Fuel Scarcity Returns To Lagos Amid Increased Pump Price

Fuel scarcity has made a troubling return to Lagos and its surroundings, as numerous oil marketers have closed their outlets, leaving motorists and consumers in a lurch. Last week, a similar issue was reported in Abuja, attributed by oil marketers to poor road conditions and the soaring cost of diesel for distribution. However, recent observations over the weekend have revealed that both independent and major oil marketers have halted operations, leaving the responsibility of serving customers in most parts of Lagos to NNPC Limited, the only remaining importer of the product. This scarcity has persisted despite fuel deregulation, as other operators have struggled to import petrol due to market instability and a lack of foreign exchange.  The informal exchange rate has reached over N1,000 per dollar, compounding the challenges faced by these operators. Chinedu Okoronkwo, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has indicated that measures are being taken to address this crisis.  He stated, “Stakeholders have been meeting, and measures have been taken to enable oil marketers to access foreign exchange at a rate that will not disrupt the current price of the product.” Meanwhile, in Abuja, most major marketers that are still operational have raised their pump prices from N615 per liter to N625 per litre, adding to the woes of already burdened consumers.

No Plan To Increase Petrol Pump Price –NNPCL

The Nigeria National Petroleum Company Limited (NNPCL) has said it has no plans of increasing the pump price of petrol. In a statement posted on its verified X handle, and signed by the company’s Retail Management, it urged Nigerians to ignore speculations about a possible increase. NNPC Limited GCEO, Mele Kyari, had repeatedly stressed that the company would not increase the price of petrol from its present N617 per litre. “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated. “Please buy the best-quality products at the most affordable prices at our NNPC Retail Stations nationwide,” the statement read.

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.

N900m IPMAN Debt: Delay In Payment Due To Bogus Claims, Says Anambra Govt

The Anambra government has met with leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) over debt claims by some marketers who supplied diesel for streetlight generating sets. Mr Tony Collins Nwabunwanne, the state Commissioner for Local Government, Chieftaincy and Community Affairs, led the government team while Mr Chinedu Anyaso, chairman of IPMAN Enugu Depot Community, led the marketers in company of his executive members and some of the contractors. Speaking to newsmen, Nwabunwanne said the delay in payment was due to discrepancies and bloated bills which some of the contractors submitted. The Commissioner, who described meeting with the marketers as productive, said Anambra government was willing and ready to pay the contractors as soon as the inconsistencies in claims are cleared. He promised to present their plights to the governor in the coming days for his consideration. “We had a fruitful meeting, the marketers agreed that the blame is not entirely on government but that of the contractors, some of whom have made bloated claims. “But we have considered all that, we are making the necessary adjustments and very soon, Mr Governor, Prof Chukwuma Soludo, will issue a directive,” he said. On his part, Anyaso thanked the Commissioner for his prompt response to their plea. Anyaso said IPMAN was satisfied with the outcome of the meeting and was hopeful that Soludo would act swiftly as promised in the interest of marketers and contractors. “I want to thank Gov. Soludo for the prompt response we got after complaining to him about the debt to our members and the effect on their businesses. “The Commissioner explained the issues to us and we understand better, but more importantly, we look forward to the fulfillment of the promises made in the meeting,” he said. IPMAN had complained about the non payment of about N900 million owed contractors and marketers who supplied diesel to the Anambra government for powering streetlight generators.

Crude Export Earnings Hit N5.6trn In Q2 Amid Naira Float

There was a major improvement in export earnings in the second quarter of 2023, as a result of the floating of the naira which ensured earnings from crude oil exports swells. Crude oil receipts rose 8.5 per cent to N5.6 trillion. This represents 79.6 per cent of total exports. “The improvement in export earnings was mainly spurred by crude oil receipts which rose 8.5 per cent quarter-on-quarter (q/q) to N5.6 trillion (about 79.6 per cent of total exports) though production level was unimpressive as per national Bureau for Statistics (NBS) data (down 19.2 per cent q/q to 1.22mbpd). “Noteworthy, we suspect that the improvement in oil receipt was also impacted by exchange rate revaluation gain given that the Central Bank of Nigeria (CBN) switched from a hard-pegged exchange rate regime to a managed float in June 2023, causing the official conversion rate of oil proceeds to rise from N461/$ to over N650/$. Hence, nullifying the effect of lower crude oil price in the second quarter ($78.13/bbl.) relative to the first quarter ($81.11/bbl.).”, said analysts at Afrinvest. Data from NBS showed that the value of Nigeria’s total trade (imports and exports combined) improved over the preceding quarter (up 5.8 per cent) but trailed the level attained in the corresponding period of 2022 by 7.6% to settle at N12.7 trillion. For the third consecutive quarter, Nigeria recorded a positive trade balance amounting to N1.3 trillion in the second quarter, aided by the faster growth in export earnings (up 8.1 per cent q/q to N7.0 trillion) as against import expenses (up 3.0 per cent q/q to N5.7 trillion). Similarly, non-crude oil and non-oil exports also grew 6.8 per cent and 5.6 per cent q/q to N1.4 trillion and N688.7 billion respectively. “We attribute these gains to the recovery in the broader economy from the negative knock-on effect of pre-election jitters and poor implementation of the naira redesign policy in the first quarter (GDP expanded 2.5 per cent vs. 2.3 per cent in the first quarter)”, said Afrinvest. It is important to highlight that Agricultural goods remain Nigeria’s largest source of non-oil export earnings (4.0 per cent of export share), while Manufacturing, Raw material goods, and Solid mineral goods trailed with 3.0 per cent, 2.1 per cent, and 0.5 per cent, respectively. Cashew nuts (shelled and unshelled), sesame seeds, and cocoa beans combined accounted for 65.7 per cent of the total N278.4 billion Agric exports in the period – an indication that cash crop exports could be a major source of non-oil foreign exchange (forex) earnings for Nigeria if adequate investment is made on procuring modern farming equipment and insecurity is wholistically checked. In terms of trade performance with other regions, the previous quarter’s trend was sustained as Nigeria booked a surplus with three of its five trading regions – America (N178.5 billion), Europe (N1.2 trillion), and Africa (N510.5 billion) – while a deficit was recorded in trade with Asia (N584.5 billion) and Oceania (N98 billion). In terms of destination, the Netherlands (11.2 per cent), the US (10.2 per cent), and Indonesia (7.8 per cent) were the top export hubs by share while China (22.2 per cent), the US (16.1 per cent) and Belgium (8.0 per cent) topped imports origin.

IPMAN running a parallel government- CSOs

*Oppose alleged plan to increase petrol price  The coalition of Civil Society Organisations (CSOs) on Friday tackled the Independent Petroleum Marketers Association of Nigeria (IPMAN) over allegations that it was planning to increase the price of Premium Motor Spirit (PMS). Others who signed the statement were officials of Oil and Gas Transparency and Advocacy Group, Civil Society Coalition for Economic Development (CED), Centre for Citizens Rights, Centre for Good Governance Advocacy and Action against Corruption in Nigeria, among several others. In a statement jointly signed by the Convener, Dr Basil Musa and Co-Convener, Malam Haruna Maigida, in Abuja on behalf of others, the coalition said that IPMAN was running a parallel government which is inflicting untold hardship on Nigerians. The CSOs said that information reaching them was to the effect that IPMAN was planning to increase petrol price to N700 per litre, a move which they vowed to resist by picketing IPMAN members’ filling stations across the country. They accused the IPMAN of running a parallel government and inflicting pain on ordinary Nigerians through their unilateral adjustment of the price of petroleum. They described the planned increment as unacceptable and called on the Federal Government to stop IPMAN from its alleged profiteering at the expense of ordinary Nigerians. The CSOs said the move was an economic sabotage, coming at a time Nigerians are still trying to come out of the “price shock”, occasioned by the increment on May 29. They said that Nigerians were already passing through difficult times over the recently adjusted fuel pump price with no palliative measures yet in place. They vowed to mobilise their members and other stakeholders across the 36 states of the federation to embark on a protest, adding that the protest would target shutting down filling stations nationwide.  They added that Nigerians could not afford to be railroaded by IPMAN, in an alleged contraction of the position of the Federal Government on petroleum prices. “As a Coalition of Civil Society Organisations (CSOs), we are monitoring events and the proposed fuel pump hike to N700 per litre by IPMAN and we say it is unacceptable. “If the government does not caution IPMAN, we see it as a deliberate collusion to drive Nigerians into unmitigated difficulties.  “As CSOs, we will not sit and watch that happen. We will mobilise Nigerians into a street protest and that should be taken from us.  “We watched the removal of the fuel subsidy regime by President Bola Tinubu in his inaugural address on May 29 and we take the dare consequences as part of the sacrifice, awaiting when the government would have settled to come up with ameliorative measures for the citizens. “But for IPMAN to adjust fuel pump price will stoke protests because it is not in the interest of Nigerians,’ they said. They said if IPMAN achieved the proposed increase, it would amount to over 451 per cent above what Tinubu Administration met in the office, thereby raising the fear of hyperinflation on the cost of goods and services. They added that “IPMAN was largely behind the mystery litres of petrol consumption that suddenly dropped from 66 million per day to 40 million after fuel subsidy was removed. “We advise the marketers association to brace up for a change as sharp practices in the downstream sector can no longer be condoned.”