……….. FG completely removes oil subsidy
……….. Minister denies stopping Refineries’ rehabilitation
………..NMDPRA warns oil marketers against shady deals
By Obinna F. Nwachukwu
On Wednesday a litre of premium motor spirit (PMS) popularly called petrol rose to N977 at the Dangote Refinery in Lekki Lagos, a major supplier of the product to the Nigerian National Petroleum Company Limited (NNPCL) forcing the corporation to quickly adjust its own retail pump price from N897 to N1,030 per litre, reliable industry sources told our correspondent yesterday
In reaction, economists and oil industry analysts say the development portends grave danger to the economic stability of Nigeria as prices of foodstuff, transportation and other essential items would multiply in prices with serious consequences on people’s means of livelihoods
Findings conducted by this newspaper showed that this has led to the adjustment in pump ptice by the NNPCL as full deregulation of the product takes immediate effect.
The NNPCL had earlier quit its middleman deal with Dangote Refinery, a move that made marketers, including NNPCL, to buy directly from Dangote at the cost reflective price.
With the new price by Dangote Refinery, NNPC Ltd has adjusted the price of Premium Motor Spirit (PMS), also known as petrol, based on the ex-depot price it bought from the Dangote Refinery.
The available report indicates that the National Oil Company bought a litre of PMS from the Dangote Refinery at N977.
Checks also revealed that NNPC Retail Stations in Lagos are currently selling the product at N988, while those in Abuja are selling at N1,030.
Since NNPC Ltd. recently exited as the middleman in the Dangote Refinery PMS sale, the nation’s marketers are now free to buy their products from the refinery on a willing-buyer, willing-seller basis.
Federal government yesterday began full deregulation of the downstream petroleum sector with NNPCL announcing another increase in its fuel price
It raised the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at its various outlets in Abuja on Wednesday.
This price hike follows the company’s decision to terminate its exclusive purchase agreement with Dangote Refinery.
Earlier on Monday, NNPC ended the agreement, allowing other marketers to purchase petrol from the refinery directly.
As a result, NNPC is no longer the sole off-taker, and marketers are now free to negotiate prices directly with Dangote Refinery.
This shift aligns with the current practices of fully deregulated products, enabling refineries to sell to marketers on a “willing buyer, willing seller”
In a related development, the Minister of State Petroleum Resources ( Oil) Senator Heineken Lokpobir had given a clarification on the allegation that he stopped the NNPCL from continuing its Refinery Operations
In a statement he personally signed the minister said no such thing ever happened
His words : ” My attention has been drawn to statements made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented me at a recent conference in Lagos. I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false.
“This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.
“It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL, as it operates independently like any corporate entity.
“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.
“I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency, and profitability” he stated
Meanwhile, the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned filling station owners operating in Nigeria to desist from dispensing of petrol to consumers, assuring that sanctions await any offender.
Coordinator of NMDPRA in Kogi State, Engr. Godwin Ogbe gave the warning while interacting with members of Correspondent’s chapel of Nigeria Union of Journalists, Kogi state council in Lokoja the state capital.
According to him , the Authority will not tolerate any nefarious activities that will undermine the effort of President Bola Ahmed Tinubu in ensuring that petroleum products are available for Nigerians.
“Filling station owners in Kogi state should desist from any act that is capable of jeopardizing the effort of the federal government in the supply and sales of petrol.
“Any marketer that cut corner or under dispense petrol or cooking gas in Kogi state, we will clampdown on such marketer by imposing heavy sanctions.
“You can not be sabotaging the effort of the federal government when you are given the liberty to sell the fuel based on what is being sold to you, therefore we will not tolerate any act of cheating in dispensing the product” he stated.
Engr. Ogbe who also warned marketers against black market racketeering, selling in jerry cans at night, urged them to get approval from the Authority if there is any reason to reserve fuel for customers.
He appealed to the general public to always report illegal activities of the fuel marketers to NMDPRA for appropriate action.
In his remark, the Chairman of Correspondent’s chapel of NUJ Kogi state council Mr Segun Ademola Salami, said the purpose of the visit was to intimate the Authority the numerous complaints of fuel consumers on the activities of the filling station operators that shortchanged the people in the state.
He advised the NMDPRA in Kogi to step up their monitoring effort in order to apprehend and sanctioned offenders to serve as deterrent to others.