FUEL

As Nigerians express dissatisfaction over the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, Gistreel provides an update on petrol scarcity, price changes, and the reactions of both the government and citizens.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that petrol prices in Nigeria are expected to decline soon.

This projection follows the resumption of operations at the Port Harcourt Refinery and the anticipated contributions from the Dangote Refinery. These developments are expected to boost the availability of petroleum products and stabilize prices.

The NMDPRA Chief Executive, Ahmed, stated that with these refineries now operational and plans underway for Warri and Kaduna refineries to join, Nigeria is on track to become a net exporter of petroleum products rather than relying on imports.

The NNPC Ltd. has fulfilled its commitment to recommission the Port Harcourt Refining Company (PHRC), signaling the plant’s return to crude oil processing and the distribution of petroleum products.

This milestone was highlighted in a statement by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, on Tuesday. The refinery began dispatching petroleum products, including Premium Motor Spirit (PMS/petrol), Automotive Gas Oil (AGO/diesel), and Household Kerosene (HHK). Other products will also follow shortly.

During a ceremony to mark the start of product loading, NNPC Group CEO Mele Kyari described the event as a landmark achievement, marking the beginning of a new era of energy independence and economic growth for Nigeria.

Petroleum marketers in Nigeria have forecasted a potential reduction in petrol prices to between ₦900 and ₦1,000 per litre by the festive season. This anticipated decrease is linked to the operational capacity of the Dangote Refinery and ongoing interventions in the sector.

As Nigerians endure the effects of the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, new developments bring some relief. Gistreel reports on the latest trends in petrol scarcity, price reductions, and reactions from the government and citizens.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed that the deregulation of Nigeria’s downstream oil sector is driving a gradual drop in petrol prices.

Gistreel understands that increased competition among oil marketers, spurred by deregulation, has started to lower pump prices.

This development coincides with the importation of over 2 billion litres of Premium Motor Spirit (PMS) by the NNPC Limited and other operators within just 42 days. IPMAN’s National Publicity Secretary, Chinedu Ukadike, also credited the recent partnership between IPMAN and Dangote Petroleum Refinery as a significant factor in reducing petrol costs.

The Dangote Petroleum Refinery has reached an agreement with IPMAN to supply 60 million litres of petrol weekly, equivalent to 240 million litres monthly. The refinery’s capacity to meet this target depends on IPMAN’s demand and patronage.

The $20 billion Lekki-based refinery is also raising funds to enhance crude oil imports and expand production capacity. According to oil marketers, deregulation has intensified competition, contributing to the recent decline in petrol prices.

Meanwhile, organized labour has urged President Bola Ahmed Tinubu to reconsider policies such as the floating of the naira, increased electricity tariffs, and the hike in petrol prices.

At the National Delegates Conference of the National Union of Shop and Distributive Employees (NUSDE) in Ibadan, NUSDE President Aminu Megbontowon expressed concern over the severe economic challenges caused by these policies.

He criticized the rising cost of petroleum products, which now exceed N1,000 per litre, and electricity tariffs, which have surged from N68 to N227. Megbontowon emphasized that these costs are unsustainable in an oil-producing nation like Nigeria, where citizens’ purchasing power remains alarmingly low.

The call for policy reversals reflects the growing frustration among Nigerians facing escalating economic pressures.

As Nigerians continue to express frustration over the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, Gistreel provides the latest updates on petrol scarcity, fuel price increases, and reactions from the government and citizens.

The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in crude oil and gas production, reaching 1.8 million barrels per day (mbpd) and 7.4 standard cubic feet per day (scfd), respectively. This progress was shared during a press briefing on Thursday and attributed to compliance with directives from President Bola Tinubu.

Commenting on the achievement, the Group Chief Executive Officer, Mele Kyari, commended the Production War Room Team for leading the successful production recovery efforts.

“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms, acceptable to our shareholders based on the mandates that we have from the President, the Honourable Minister, and the Board,” Kyari said.

Giving details of the efforts of the Production War Room, the Chief War Room Coordinator and Senior Business Adviser to the Group Chief Executive Officer, Mr. Lawal Musa, explained that the feat was achieved through the collaborative efforts of Joint Venture and Production Sharing Contract partners, the Office of the National Security Adviser, as well as government and private security agencies.

The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos.

The agreement, finalized on Tuesday at the Dangote Group’s Corporate Head Office in Falomo, Lagos, is designed to ensure a consistent supply of natural gas to the Dangote Refinery for power generation and as feedstock.

The signing ceremony was attended by NGML’s Managing Director, Justin Ezeala, and the President and CEO of the Dangote Group, Aliko Dangote.

“This major milestone is in line with President Bola Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

“This development, which sees a huge investment of this nature penned with zero capital expenditure outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company in the country,” a statement by the NNPCL spokesperson, Olufemi Soneye, said on Wednesday.

According to Soneye, under the terms of the agreement, NGML will supply 100 million standard cubic feet of gas per day – 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.

The Ogun State Government has debunked claims of harassment and intimidation made by the Independent Petroleum Marketers Association of Nigeria (IPMAN).

Speaking on Thursday, the State Commissioner for Transportation, Olugbenga Dairo, explained that contrary to the allegation, a task force was set up in the petroleum industry to address fuel meter tampering and other sharp practices among operators.

He noted that the government, faced with soaring transportation costs and public outcry over fuel pricing malpractices, took a proactive approach by establishing the task force aimed at regulating and ensuring fair practices within the petroleum sector.

The commissioner disclosed that in the course of its duties, the task force observed some sharp practices by certain filling stations, including tampering with their dispensers.

Analysis of the filling stations visited, according to him, showed that at Bugatee Filling Station, Idi-Aba, there is a shortage of 0.71 litre on every 10- litre purchased, amounting to about ₦700 in losses.