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Fuel Crisis: Pump Price Yet To Reflect Market Conditions — NNPCL VP Adedapo

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Adedapo Segun, Executive Vice President (Downstream) of Nigerian National Petroleum Company Limited, stressed the importance of a perfectly competitive market for stable fuel prices and supply in Nigeria.

Segun noted: “The current pump price does not accurately reflect prevailing market conditions.”

He made this statement during an appearance on Arise Television’s Morning Show on Thursday.

“The pump price today is not market reflective. NNPCL is the sole importer of PMS in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” he said, stressing that market forces, rather than any single entity, should dictate fuel prices.

Segun clarified that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company but a response to market conditions.

“Let me put it in the proper context. NNPCL is not a regulator. We didn’t choose to be the sole importer. We don’t determine who plays in the market. We stepped in when others reduced their participation. It’s not about wanting to be monopolists,” he explained.

He also stated that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.

“Market conditions need to be perfect, and there must be FX liquidity,” he added, suggesting that broader economic reforms may be necessary to address the fuel pricing issue.

NNPCL has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for refining.

“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” Segun revealed.

BIG STORY

NiMet Forecasts Three Days Of Thunderstorms, Rainfall Across Nigeria

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The Nigerian Meteorological Agency (NiMet) has forecast thunderstorms and rainfall throughout the country from Tuesday to Thursday.

According to NiMet’s weather outlook released on Monday, thunderstorms are likely to occur in the morning hours over parts of Bauchi, Kebbi, Taraba, Kano, Katsina, Adamawa, and Kaduna states on Tuesday.

On Wednesday, thunderstorms are expected in the morning hours over parts of Taraba, Adamawa, Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states.

“In the north-central region, thunderstorms are expected over parts of Kogi, Benue, Plateau, the Federal Capital Territory, Nasarawa, and Niger states during the morning hours,” the forecast reads.

“Later in the day, thunderstorms are expected over the Federal Capital Territory, Kwara, Niger, Kogi, Plateau, Benue, and Nasarawa states

“In the southern region, there are prospects of moderate rains over parts of Ebonyi, Imo, Enugu, Oyo, Ekiti, Ondo, Delta, Bayelsa, Cross River, Rivers, and Bayelsa states during the morning hours.

“In the north-central region, there are prospects of thunderstorms over parts of the Federal Capital Territory, Kogi, Niger, and Kwara states during the morning hours.

“While in the afternoon into evening hours, thunderstorms are expected over parts of Nasarawa, Kogi, the Federal Capital Territory, Kwara, and Niger states.

“In the southern region, thunderstorms are expected over parts of Oyo, Ogun, Osun, Ondo, Ekiti, Enugu, Imo, Edo, Cross River, Delta, Akwa Ibom, and Bayelsa states during the morning hours.

“Progressing into the afternoon and evening hours, thunderstorms are envisaged over the entire region.”

NiMet said it anticipated thunderstorms over parts of Sokoto, Kebbi, Taraba, and Adamawa states in Thursday`s morning period.

It added that there would be thunderstorms over parts of Borno, Bauchi, Kaduna, Taraba, and Adamawa states later in the day, while parts of Nasarawa and the FCT would also experience rainstorms.

“In the southern region, isolated thunderstorms are expected over parts of Osun, Edo, Ondo, Ekiti, Delta, Lagos, Rivers, and Bayelsa states in the morning hours,” the agency said.

NiMet urged residents to avoid flood-prone areas due to the high likelihood of urban flooding in major cities.

It advised the public to take adequate precautions as strong winds might precede the rains in areas where thunderstorms are likely to occur.

“Adhere to safety advisories issued by relevant authorities. Public and airline operators are advised to get updated weather reports and forecasts from NiMet for effective planning in their operations,” NiMet said.

“Residents are advised to stay informed through weather updates from NiMet.”

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BIG STORY

It Doesn’t Make Sense For NNPCL To Sell Dangote Petrol Higher Than Imported Ones — IPMAN

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns over the Nigerian National Petroleum Company Limited’s (NNPCL) pricing of petrol lifted from the Dangote Refinery.

IPMAN National Welfare Officer, John Kekeocha, spoke on Channels Television’s The Morning Brief programme on Monday, questioning the logic behind selling Dangote Refinery petrol at a higher price than imported products.

Kekeocha asked, “If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?”

NNPCL began loading petrol from the Dangote Refinery on Sunday, stating it purchased the petrol at N898 per litre. However, IPMAN notes that NNPCL retail outlets in Lagos previously sold petrol for around N855, but now sell Dangote petrol for N950 per litre in Lagos and N1,019 in Borno.

However, Dangote Refinery denied selling petrol to the NNPCL at N898. A spokesman for the refinery Anthony Chiejina in a statement late Sunday described the claim by the NNPCL as “misleading and mischievous”.

“It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature,” Chiejina said.

NNPCL insisted that it got petrol from Dangote Refinery at N898 per litre and challenged the latter to release the price it sold petrol. The NNPCL further released a breakdown of pricing it sell Dangote petrol at its filling stations across the country.

Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.

The refinery, which was initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.

Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries non-operational. The country is heavily reliant on imported refined petroleum products, with the state-run NNPC being the major importer of the essential commodities.

Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to over ₦1000/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.

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BIG STORY

NNPC Releases Another Estimated Petrol Price Breakdown

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The Nigerian National Petroleum Company Limited (NNPC) has released a revised breakdown of the estimated price of petrol purchased from the Dangote refinery.

Earlier, NNPC issued a statement on Monday providing a chart breakdown of the refined petrol product bought from the refinery on September 15.

According to the statement, NNPC is paying for the September 2024 petrol offtake from Dangote refinery in United States dollars. However, Naira transactions are scheduled to commence on October 1, 2024.

The statement reads, “The NNPC Ltd. has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.

“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021.

“The NNPC Ltd. can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

“We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”

While the data of the estimated price to be sold around the country remains the same, the analysis of the transaction it had with Dangote Refinery was altered.

While the first press statement on Monday had a Nigerian Midstream and Downstream Petroleum Regulatory Authority fee of ₦8.99, the second statement showed ₦4.495.

The first statement had an inspection fee of ₦0.97, a margin fee of ₦26.48 and a distribution fee of ₦15.

In the second statement on Monday, there were no inspection and margin fees, while the distribution fee was changed to ₦42.45.

The second statement also had an additional Midstream and Gas Infrastructure Fund fee of ₦4.495.

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