The Nigerian National Petroleum Company Limited (NNPCL) has increased the price of Premium Motor Spirit, otherwise known as petrol, from N855 per litre to N998 per litre.

The increase in the price of petrol, which came on Wednesday, was noticed at the pumps at all NNPCL depots in Lagos State.

The new development is a 12.7 percent or N113 increase from the initial price.

Recall that the national oil company had on September 3, 2024, raised the price of petrol from N568, which was the lowest in Lagos, and N617 in some other parts of the country, to a minimum of N855, obtainable in Lagos.

More to come…

Heineken Lokpobiri, the minister of state for petroleum resources (oil), has denied directing the Nigerian National Petroleum Company (NNPC) Limited to stop operating its refineries and focus exclusively on equity participation in other refineries.

In a statement on Tuesday, Lokpobiri clarified that the statement was made by Kamoru Busari, the director of upstream in the ministry of petroleum resources, who represented him at a recent conference in Lagos.

Speaking on the matter, Lokpobiri labeled the claim as “false”.

“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,” Lokpobiri said.

“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.”

Lokpobiri emphasized that this does not reflect his position as the minister responsible for the oil sector, nor does it represent 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,” he said.

He added that the ministry of petroleum resources does not control or manage NNPC, as the company operates independently, similar to other corporate entities.

“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining,” Lokpobiri said.

“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.”

Lokpobiri reiterated his commitment to supporting NNPC’s growth and independence, ensuring that its operations align with international standards for efficiency, transparency, and profitability.

Aliko Dangote, Africa’s richest person, stated that the Dangote Petroleum Refinery was constructed without any government incentives.

Speaking at the 2024 Crude Oil Refinery-owners Association of Nigeria (CORAN) summit in Lagos on Tuesday, Dangote said, “We built the Dangote refinery without a single incentive from the government.”

Represented by Mansur Ahmed, group executive director of Dangote Industries Ltd, Dangote also emphasized that Nigeria must stop using crude oil as collateral in order to secure the country’s future.

“To ensure sufficient feedstock availability, we will need to stop mortgaging crude. It is unfortunate that while countries like Norway are putting oil proceeds into a future fund, in Africa we are spending oil proceeds from the future,” Dangote remarked.

He further stressed the need for Nigeria to implement domestic crude supply obligations and expand oil production capacity to meet the rising demand from newly established refineries.

“The government of President Bola Ahmed Tinubu is taking active steps to achieve this through fast tracking IOC divestments and other initiatives,” he said.

On Nigeria’s path to becoming a net exporter of petroleum products and achieving energy self-sufficiency, Dangote explained that the country would require an additional 1.5 million barrels per day of refining capacity.

“This will not be an easy feat and strong government support will be required to achieve this,” he added.

Regarding Nigeria’s potential as a refining hub, Dangote noted that investors must be encouraged.

Dangote pointed out that Africa imports about 3 million barrels of petroleum products daily, despite producing over 3.4 million barrels of crude oil per day.

He estimated that the cost of these imports, mostly sourced from Europe, Russia, and other regions, reached approximately $17 billion in 2023.

“However, these markets will be more competitively served from Nigeria. Both the crude oil and the petroleum products will travel shorter distances,” Dangote said.

He explained that eliminating logistics costs for floating storage would allow countries to purchase petroleum products “just in time.”

“Nigeria and Africa can become completely self-sufficient and we can keep all the value on our shores. We have done it in Cement, and we can certainly do it for petroleum products,” he added.

He highlighted that the Dangote refinery already meets Nigeria’s demand for diesel and jet fuel, and it has recently begun petrol production, with plans to scale up output.

Dangote mentioned that the refinery has exported its refined products to various markets, including Europe, Brazil, the United Kingdom, the United States, Singapore, and South Korea.

Abdulrazaq Isa, chairman of Waltersmith Refinery and Petrochemicals Company Ltd, commended Dangote for the achievements and urged the government to support domestic refiners by ensuring crude availability, adhering to domestic crude supply obligations, and curbing smuggling through effective pricing and monitoring

Emmanuel Iheanacho, chairman of CORAN’s board of trustees and CEO of Integrated Oil and Gas, revealed that Nigeria loses approximately $83 billion annually due to its inability to meet the Organisation of Petroleum Exporting Countries (OPEC) quota.

Iheanacho added that transforming Nigeria into a net exporter would offer numerous benefits, but emphasized that increased investment is needed to boost oil production.

Although local refining is gaining momentum, Iheanacho acknowledged the continued importance of tank farms and encouraged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to consider canceling import licenses, as Nigeria can now meet its domestic demand.

He also praised the Dangote refinery for setting a high standard with its production of Euro-V products, thereby protecting citizens from the dangers of high-sulfur fuels.

Huub Stokman, chairman of the Major Energies Marketers Association of Nigeria (MEMAN), remarked that Nigeria is on the verge of becoming Africa’s top refining powerhouse, which will greatly enhance the economy.

On the issue of crude supply, Momoh Oyarekhua, chairman of CORAN, expressed concerns and stated that local refiners would work closely with regulators and stakeholders to resolve these challenges.

Heineken Lopkobiri, minister of state for petroleum resources (oil), assured that the government remains committed to enhancing crude oil production and supporting domestic refineries through new policies and frameworks.