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Fuel Marketers Predict N170/Litre, Claim Supply Drop, NNPC Disagrees

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The pump price of Premium Motor Spirit, popularly called petrol, may rise from the current N162-N165/litre to N170/litre, while its depot price is projected to increase from N159/litre to N165/litre, oil marketers said on Thursday.

Dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria warned that the rising cost of petrol at depots would definitely warrant a commensurate increase in pump price if not checked.

They also complained of PMS supply problems, stressing that many tank farms or depots had no petrol, which was why the few ones that had the commodity had to increase their price from the approved N148/litre price to N159/litre.

But the Nigerian National Petroleum Company Limited maintained its stance that it had enough petrol to last the country all through the festive season and beyond.

IPMAN and PETROAN members own the bulk of the filling stations across the country and make purchases from depots before selling to final consumers at their various retail outlets.

Providing explanations for the rising cost of petrol at depots, owners of the facilities told our correspondent that it was because the recent agreement reached by key stakeholders in the downstream oil sector had yet to be effected by the Federal Government.

The NNPC had last week agreed to revert to naira-denominated invoices for excess capacity for coastal movement using the Investors and Exporters window rate for the time being, but this had yet to be implemented.

Depot owners had argued that the payment of the charges in dollars was a major hindrance to their effective participation in products distribution, saying this had led to scarcity in many cities.

On the possibility of a hike in the pump price of petrol soon, the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, said it was inevitable if the current increase in depot price persists.

Asked if the high depot cost could result in an increase in pump price, he replied, “Yes, because if you look at our profit margin, you will realise that it is regulated and fixed.

“And they (government) often talk about deregulation. But you cannot do deregulation in a regulated market. There is a band and you say you are doing deregulation.

“So for marketers, any moment from now, we will be pushed to take the band above N165 to N170 if this situation continues.”

Chinedu further argued that there had been problems with product availability, contrary to the position of the NNPC that it had enough petrol that would last for months.

The IPMAN spokesperson said, “I want you to know that the availability of petrol is a problem. Most tank farms don’t have products. And the place to go and buy products is from the few ones that have.

“And as a result, profiteering will set in and they will be selling at N159 to N160/litre. You (marketers) will now consider moving the product to your filling stations, particularly for marketers who don’t get bridging claims.

“Now this marketer will pay close to N100,000 to be able to send the product to his station. Now when the product gets to his station, that product’s cost is almost at N163/litre. So, will he use only N2 margin to sell petrol, knowing that he will pay staff, power bill, taxes, etc?”

Chinedu added, “Marketers should not be held responsible when the pump price increases. Many tank farms don’t have products. So marketers don’t have an option because if they buy, they sell.

“If there is surplus you will see marketers selling at N162/litre or below, but right now you hardly find anyone selling at that price. I also want to let you know that by next week, products will be close to N165/litre at depots.”

The President PETROAN, Billy Gillis-Harry, confirmed the position of IPMAN, noting that retailers of petrol at filling stations would adjust their prices upwards beyond the N165/litre if depots continued to sell at unapproved rates.

He said, “Private depot owners have increased their prices arbitrarily by themselves. Most retail outlets are very disciplined now by keeping the pump price within the band.

“But if the depots keep maintaining the N157 to N159/litre as they are doing, there will be no choice for retail outlet owners but to also add the commensurate price to it. That’s the reality.”

Gillis-Harry, however, stated that PETROAN had reported officially to the defunct Department of Petroleum Resources, which had now metamorphosed into two agencies based on the implementation of the Petroleum Industry Act.

“We will be having meeting with the new midstream and downstream regulator soon and this will be one of the issues that will come up when we meet,” the PETROAN president stated.

On why depot owners had raised their pride beyond the approved N148/litre price, an official of the Depot and Petroleum Products Marketers Association of Nigeria told our correspondent that the NNPC had failed to implement an agreement that was reached by stakeholders last week.

The official said NNPC had agreed to revert to naira-denominated invoices for excess capacity for coastal movement using import and export window rate for the time being.

The source further explained that the dollar charges on port dues of fuel vessels by the Nigerian Maritime Administration and Safety Agency and the Nigerian Ports Authority had been a challenge to depot owners.

The official stressed that the insistence of the agencies was despite a presidential directive that had ordered both organisations to stop doing so.

According to the source, the NNPC is now charging in dollars for the use of its vessels contrary to the naira charges previously done.

He stressed that the cost was now huge on depot owners, as this was the basic reason for the hike in depot price to N159/litre.

The Group General Manager, Group Public Affairs Division, NNPC, Garba-Deen Muhammad, could not be reached for comment, as he did not answer calls to his phone.

He had yet to respond to a WhatsApp message sent to him on the matter at the time of filing this report.

However, Muhammad had said in a statement issued recently that the NNPC had over 1.7 billion litres of petrol in stock and more product was expected to arrive in Nigeria daily over the coming weeks and months.

He said it was unnecessary to entertain any fear of scarcity of petrol throughout the festive season and beyond.

He also stressed that NNPC was also not aware of any plan by the government to cause an increase in the pump price of petroleum.

BIG STORY

Enugu LGA Chairman Appoints Aides On Garden Egg, Pepper, Yam

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Eric Odo, chairman of Igbo Etiti LGA in Enugu state, has appointed Ezeugwu Ogbonna as senior special assistant on agriculture (yam and pepper).

The appointment was formalized in a letter dated November 1, addressed to Ogbonna.

“I am pleased to inform you that the executive chairman Igbo Etiti LGA has approved your appointment as senior special assistant to the local government chairman on agriculture (yam and pepper),” the letter states.

“You should report to the executive chairman Igbo Etiti LGA, Ogbede, for briefing and deployment,” it continues.

“It is pertinent to note that this is not a career civil service appointment but a temporary appointment which you hold at the pleasure of the executive chairman of Igbo Etiti LGA,” the letter further clarifies.

Odo also appointed Nwodo Ugonna as special adviser on garden egg and pepper.

The council chairman did not specify the exact duties of the appointees.

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NNPCL Admits Challenges Delaying Port Harcourt Refinery Take-Off

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Barely two months after the September completion deadline flop, the Nigerian National Petroleum Commission (NNPC) has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

In an interview (with The Punch) on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria.

“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.”

“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.

Nonetheless, he told (The Punch) that the issues were resolved and commissioning activities have resumed.

Soneye stressed that work is being carried out to ensure the project’s completion.

“These issues have since been effectively resolved, and commissioning activities have resumed.”

“Work is being carried out around the clock to ensure the successful completion of this critical project,” he told our correspondent.

Asked if there is any timeline for the completion of the project, he replied, “Shortly.”

It was observed that the NNPC desisted from giving new deadlines for the delivery of the refinery, having failed to meet its deadlines seven times.

The moribund Port Harcourt refinery is one of three owned by the Federal Government and managed by the NNPC.

Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

The NNPC said last week that it would continue to import fuel, saying it was not the sole off-taker of petrol at the Dangote refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

It was gathered that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery have continued to hit brick walls.

After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.

However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.

Recall that the contractor overseeing the rehabilitation of the Port Harcourt refinery, Maire Tecnimont SPA, refused to disclose the completion date for the project, despite a formal request from a human rights lawyer, Femi Falana.

Apparently baffled by the delay in the completion of the project, Falana had filed an official request under the Freedom of Information Act, seeking clarity on the date set aside for the project completion.

In response, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter to Falana in early October, declining to reveal the information.

Ogungbenro stated that the Managing Director of Maire Tecnimont SPA, as part of an independent private contractor, is not obligated to disclose such information under the FOI Act.

“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.

“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilise public funds for them to be bound by the obligations in the Freedom of Information Act.

“On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.

Since then, information about the refinery has been kept from the public, whose hope for cheaper petrol lies in the facility.

From December 2023, NNPC had been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

When he appeared before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna; but that of Port Harcourt will commence production early August this year.”

However, the promise was not fulfilled in August which was the sixth postponement.

Though the NNPC said it was on course, the refinery has yet to commence operations even as the fourth quarter of the year nears the end.

Recall that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of the first month.

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production would soon start.

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told (The Punch) that the facility would begin production by the end of July.

Commenting on this then, NNPC’s spokesman, Soneye, said that regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

 

Credit: The Punch

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I Was Tinubu’s Aide For Only Six Months, And I Worked For Free — Fela Durotoye

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Fela Durotoye, a Nigerian public speaker, says he worked in the administration of President Bola Tinubu for just six months without receiving a salary.

In October 2023, Tinubu appointed Durotoye as senior special assistant on national values and social justice.

Following Tinubu’s appointment of Daniel Bwala as special adviser on public communications and media, some Nigerians on social media criticised the president for appointing a plethora of media aides without considering the cost of governance.

In a 13-man list that went viral on social media, Durotoye was named as one of the media aides to the president.

In an opinion piece published on Monday, Durotoye clarified that his appointment as aide to the president ended in March 2024.

He added that throughout the six months of his appointment, he didn’t receive any salary, allowance, or upkeep as a government official.

“Like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation,” Durotoye said.

“One of such errors is in a recent case study that went viral on social media regarding the current media team of the president, where my name was listed as one of the president’s media aides. Unfortunately, this statement needs to be updated to accurately reflect the current media team of the president.”

“For clarity, I served briefly in the role of Senior Special Assistant to the President on National Values and Social Justice (SSA-NVSJ) for a tenure of six months, from October 2023 to March 2024.”

“When I was invited to serve in this administration, I expressed, as a condition for accepting the call, my desire to NOT receive a salary from the government, as I considered this to be my service to my nation.”

“When I finally accepted the role in October 2023, it was on the condition that I would not receive any salary or allowances. During my six-month tenure, I did not accept any government funds for my service, expenses, or upkeep.”

“I rented my apartment and took my personal car to Abuja. My utility cost, fuel cost and upkeep were all borne by me and I never requested a reimbursement from the government for any expenses I incurred. Everything I contributed—time, effort, and resources—was paid for by me and my family.”

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