Proposed Strike: No division in our ranks-NLC
*Says media reports, a product of mischief The Nigeria Labour Congress (NLC) has refuted reports that it is divided in the group ahead of thier planned nationwide strike on Wednesday. The union had given the federal government till Wednesday to reverse the current hike in fuel price or face mass action to protest the removal of subsidy. In a statement on Sunday, the NLC Head of Information and Public Affairs, Benson Upah, said the lead story by ThisDay Newspaper was laughable and sheer mischief. “The lead story on the front page of ThisDay of Sunday, June 4th, 2023 entitled NLC Divided as North, South-West Chapters May Shun Planned Strike , is a laughable and desperate attempt by enemies of the people to polarise Nigeria Labour Congress along ethnic or regional lines on an issue with a national spread. “Happily, this scenario only plays in their imagination as Nigeria Labour Congress continues to be the biggest pan-Nigerian organisation united by a common vision/mission and shared national values. “On the looming strike action, we want to assure that all the affiliate unions of the Congress stand together with an unshakeable resolve to prosecute, come Wednesday, except the NNPC and Government do the needful. “Whereas, primordial sentiments such as religion, region or ethnicity may be refuge for some, at the Nigeria Labour Congress, they have no place. “What counts for us are issues such as the mindless and criminal increase in the pump price of pms whose burden will be borne by the already impoverished communities of the poor across Nigeria. “The burden of this malevolent policy will not be borne by other segments of the country to the exclusion of the North or South- West. Thus, there is no reason for these regions to back out of the strike. “We do not know from where ThisDay got their story. However, if this is their way of making up for the gaps in their relationship with the new entities in power, we would say, it is rather excessive!” the statement said.
FG’s approval for private importers will crash fuel price, says IPMAN
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: NUJ to join NLC’s nationwide strike
The Nigeria Union of Journalists (NUJ) has threatened to withdraw its services nationwide as a result of the recent subsidy removal and increase in fuel pump price the federal government. According to a statement signed by the National Secretary, Shuaibu Usman Leman, the Union said its members will join the proposed NLC strike which begins Wednesday 7 June, 2023. “An emergency Central Working Committee meeting of the Nigeria Union of Journalists (NUJ) was convened online on Saturday, to discuss issues surrounding the decision by the Federal Government to remove Fuel Subsidy and the position taken by the Nigeria Labour Congress. “After presentations by the National President, Chris Isiguzo, and the National Treasurer Bamidele Atunbi on the position taken by NLC on the matter, members unanimously adopted the position of NLC on the issue. “The CWC reiterates the argument that although the removal of fuel subsidy will free allocations which can be channeled to the provisions of infrastructure and creation of additional jobs, the sudden removal could however lead to social unrests and protests as people may perceive Government as being insensitive to their plight. “CWC also notes that already there is an astronomical increase in the prices of petroleum products and high inflation which have drastically reduced the purchasing power of citizens. “Accordingly CWC directs all State Councils of the Union to mobilise members to withdraw their services and commence protests nationwide from Wednesday next week, 7th June, 2023, if the Nigerian National Petroleum Company Limited (NNCPL) refuses to reverse the new price regime in the oil sector,” the statement said.
We’ll no longer fix petrol prices– NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will no longer fix prices or release templates for Premium Motor Spirit (PMS). Authority Chief Executive (ACE), Mr Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market. “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. The development was sequel to the removal of subsidy on PMS known as petrol. President Bola Tinubu had in his inaugural speech on Monday said fuel subsidy regime had ended with the commencement of his administration. Ahmed, however, said the market was now open for everybody that would import as far as they met all the requirements. “So, it is not about the Nigerian National Petroleum Company Limited (NNPC Ltd) alone. “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 prospective importer. “We make sure we guide the operations of everyone in the sector whether at the depot or wherever the product is but we will not put a cap to say this is what the price must be,” he said. According to Ahmed, the role of the NNPC is to fix prices of the petrol it imported and not take over the responsibilities of the Authority. “In the case of the NNPC, the organisation is the sole importer at this point. We told the NNPC to recover its costs because they know how much it cost them to import the product and sell it. “Of course, we also know how much shipping, offshore, ex-depot and ex-pump are. But we cannot tell them to sell at a price because the market is deregulated,” he added. The NMDPRA boss also disclosed that the Federal Government has officially scrapped petroleum equalisation as well as the national transport allowance. He said the NMDPRA, the federal government and Consumer Protection Commission (FCCPC) would mount aggressive monitoring of activities in the downstream sector to prevent profiteering by petroleum marketers. Ahmed further disclosed that marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and recover their costs without impediments. On where the importers will source their forex from, Ahmed said the CBN would not give dollar to anyone because of open market, adding that anyone willing to import should get the dollars from anywhere to import. According to him, anyone willing to open a letter of credit from any part of the world can do that to import. “That marketers can source their forex from anywhere is the beauty of the liberalised market that the NMDPRA has introduced based on the provision of the law”. Ahmed said that the market would henceforth be modulated to allow the fluidity of prices, adding that though no template spelt out the pricing components of petrol price. He said that, “based on this, the price would no longer be static rather depend on the international price of the gasoline market.
Market realities driving up petrol price – Kyari
*Says prices will normalize within two weeks The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said that the sudden hike in pump price of petrol in filling stations across the country is a reflection of the realities of the market. Despite having supplies, the filling station still went ahead to hike the price of their products. Speaking on a television program monitored by NIGERIAN ANCHOR on Thursday, Kyari said that the situation applies to all commodities and that it portrays the reality of the market. “It could have been the other way round; prices could have collapsed downwards and those holding the old stock would have to sell at lower prices to arrive at market condition. “It is not something serious or strange, this is a stock management issue and it is very typical, no one can do anything different about this. “The prices we are seeing today at our stations are the current price of the commodity. This means that prices in the market can go down at any time and of course, the market will adjust itself,” Kyari said. The GCEO however assured that the fuel hike currently being experienced will normalize in the next 2-3 weeks because competition among major players in the oil sector would force down the price of petrol. He added that the subsidy removal would allow new entrants into the market, a move he said, would aid competition and phase out monopoly. “The beauty of this (subsidy removal) is that there will be new entrants (into the market) because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place. “And that subsidy regime doesn’t have a guarantee of repayment back to the those who provide the product at subsidise price and now that the market is being regulated, oil marketing companies can actually import product or even if it is produced locally, they can buy and take it into the market and sell it at its retail price. “Therefore, you will see competition, even with NNPC. And by the way, by law, NNPC cannot do more than 30 percent of the market going forward. As soon as the market stabilises, oil marketing companies will be able to come in,” he explained.
Subsidy Removal: NLC rejects new fuel pump price template
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
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.
Subsidy Removal: We’ll tackle supply disruptions – NMDPRA
*Urges Nigerians not to panic The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it is working with NNPC Limited and other stakeholders to guarantee a smooth transition following the removal of fuel subsidy. President Bola Tinubu, in his inaugural speech on Monday, said the fuel subsidy regime had ended with the commencement of his administration. NMDPRA made this known on Tuesday in a statement signed by Mr Kimchi Apollo, General Manager, Corporate Communications, NMDPRA, to address concerns regarding the removal of fuel subsidy. Apollo said the authority was working to avoid disruptions in the supply of Premium Motor Spirit (PMS), also known as petrol, as well as ensure that consumers were not short-changed in any form. He assured that there was an ample supply of PMS to meet demand and that the authority had taken necessary steps to ensure that distribution channels remained uninterrupted and fuel readily available at all filling stations nationwide. He urged Nigerians not to panic over the removal of subsidy as the authority had ensured availability of petrol nationwide. “Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (PIA 2021), which provides for total deregulation of the petroleum downstream sector to drive investment and growth. “We, therefore, call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard. “The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation. “We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector,” he said.
Oil production falls below benchmark to 998.6bpd in April
Nigeria’s oil production in April 2023 fell below the one million mark – the lowest in seven months – as the production figure fell to 998,602 barrels per day (bpd). This is a 21.26 per cent decline compared to March, when output was 1,268,202 bpd. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for April 2023. The volume of production is at its lowest point in the last seven months. In the previous year, oil production fell below one million bpd in August and September owing to several issues, including oil theft. According to the NUPRC report, oil production decreased from 1.517 million bpd in March 2023 to 1.245 million bpd in April 2023, with the addition of condensate. Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil. It is usually separated from a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions. Speaking about the current oil output on Wednesday, the Chief Executive Officer (CEO) of the NUPRC, Gbenga Komolafe, said that oil production is currently about one million bpd below “its technically allowable capacity”. Komolafe, who was represented by the Executive Commissioner for Economy, Regulatory, And Strategic Planning, NUPRC, Kelechi Ofoegbu, at a host communities sensitisation workshop, attributed the low oil production to a number of issues, including the energy transition’s impact on hydrocarbon funding, a lack of investments, and insecurity. “While the commission is prioritising efforts towards increasing oil and gas production and ensuring maximum federation revenue through the optimisation of the oil and gas value chain, the efforts have been constrained by a myriad of challenges. “These challenges range from insecurity, low investment, and de-prioritisation of funding of hydrocarbon development arising from the energy transition. “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” he said.