Connect with us

BIG STORY

NEC Recommends N302 Per Litre Petrol Price By February

Published

on

The federal government may increase the price of Premium Motor Spirit (PMS), better known as petrol, to N302 per litre in February 2022 as part of the recommendation of the National Economic Council (NEC) in November 2021.

According to The Cable, this is part of the government’s plan to fully deregulate the PMS prices, eliminating monthly subsidy payments with provisions to ensure fair competition in the market.

Petrol price is currently between N162 and N165 per litre in Nigeria.

The recommendations were put forward by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation (NNPC) on the appropriate pricing of PMS in Nigeria. The report was presented by Nasir El-Rufai, governor of Kaduna state and head of the committee.

The committee was established last year by NEC headed by Vice-President Yemi Osinbajo to look into the dwindling revenues of states.

Other members of the committee include Godwin Obaseki, Kayode Fayemi, and David Umahi, governors of Edo, Ekiti and Ebonyi states respectively; as well as Godwin Emefiele, governor of the Central Bank of Nigeria (CBN); and Mele Kyari, group managing director of the Nigerian National Petroleum Corporation (NNPC); Zainab Ahmed, minister of finance, budget and national planning.

In May 2021, the Nigeria Governors’ Forum (NGF) had also recommended N385 per litre — but stakeholders, including the federal government, rejected the recommendation.

The recommendation has since been reconsidered and dropped by the committee.

According to the new report, the committee recommended full deregulation of PMS prices by February 2022 — raising the price by about N130/140 per litre.

It also recommended that all retailers should post PMS prices at all times on a designated website and smartphone app — and they are expected to post price changes no earlier than within 15 minutes of the price change.

With the recommendations, the committee added that the federal government would save N250 billion per month on petrol subsidy removal.

“At current rates, the PMS subsidy is reducing transfers into the federation by about NGN 250 billion per month, and could, if PMS subsidies are not eliminated, result in deductions of NGN 3 trillion in 2022,” the committee’s resolution reads in part.

“The large-scale time-limited (6-months) cash transfer proposed as a way of transferring the subsidy “directly to the people” would cost N600 billion but would by paving the way for the elimination of PMS subsidies, enable the federation to recover N3 trillion in revenues that would otherwise go to PMS subsidies.

“If PMS subsidies are eliminated by February 2022, N250 billion in deductions would have been incurred, but the remaining N195 billion in anticipated PMS subsidy deductions could be redirected towards FGN funding of the cash-transfer programme.”

The NEC committee also recommended a market-based pricing mechanism, as another option, that would ensure petrol price ceilings at least once a month.

BIG STORY

Fuel Queues Resurface As Scarcity Hits Abuja, Anambra 4 Other States

Published

on

Many filling stations in Abuja and roughly five other states are closed on Wednesday as scarcity of  Premium Motor Spirit, also known as petrol cause heavy queues at few locations that dispensed the product.

The lack of PMS, which carriers need to operate their vehicles, left thousands of commuters in the Federal Capital Territory, Nasarawa, Niger, Gombe, Sokoto, and Anambra states stuck at several bus stops.

Due to the few transporters who had access to petrol, this resulted in an increase in transit fares in the impacted states.

It was gathered that the scarcity was due to a shortage in the supply of PMS to the nation’s capital and other states, as this led to the closure of filling stations in the affected areas.

Oil marketers, however, stated that they would hold a meeting with the management of the retail subsidiary of the Nigerian National Petroleum Company Limited today (Thursday) to know the cause of the shortage and how to tackle it.

Hundreds of motorists besieged the Conoil and Total filling stations that sold petrol in front of the corporate headquarters of NNPC in Abuja on Wednesday.

This led to vehicular traffic on the roads leading to NNPC headquarters and other surrounding companies in the Central Business District of Abuja.

Several filling stations in Zuba, Niger State, including NNPC, AYM Shafa, among others, were closed on Wednesday for lack of petrol to dispense.

Similarly, the NNPC outlet on Arab Road, Kubwa, Abuja, had no product to sell. Many other outlets along the Kubwa-Zuba expressway were also shut. In Nyanya, Nasarawa State, many filling stations were closed.

Their inability to operate piled pressure on the few stations that had PMS on Wednesday, leading to massive queues by motorists at these outlets.

Oil marketers, however, stated that the reason for the shortage in the supply of PMS to Abuja and neighbouring states was being investigated, adding that a meeting would be held on the matter today (Thursday).

According to The Punch, the National Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief John Kekeocha said “It is obvious that there is supply shortage in Abuja and other states that are close to the FCT (Federal Capital Territory)”

He added, “This is the reason why many filling stations in these areas are not selling PMS, which, of course, has led to the serious queues you see in the few ones that are dispensing the product. I cannot tell you the reason for this supply shortage now.

“But we are meeting with NNPC Regal tomorrow (Thursday), and this is going to form part of our discussions. The matter is being looked into right now, and we hope to find a solution to it during the meeting.”

Earlier, the National President, IPMAN, Abubakar Maigandi, told our correspondent that the queues for petrol in many states would be a thing of the past when the Dangote Petroleum Refinery starts pumping out PMS to the domestic market.

But when asked whether the refinery had briefed marketers about when it would start pumping out the product, Maigandi replied, “We don’t know the time. But since he said he would start it, I know that he will do that.

“So we are still waiting and we know that once he starts releasing petrol to the domestic market, this issue of fuel scarcity and queues will become a thing of the past.”

His position was corroborated by the IPMAN National Public Relations Officer, Chief Ukadike Chinedu, who also expressed hope that the Port Harcourt Refining Company would start producing refined petroleum products very soon.

  • Commuters Stranded

It was gathered that thousands of commuters going to their various destinations were stranded at different motor parks in Anambra State on Wednesday due to the unavailability of transportation vehicles because of the shutting down of petrol stations across the state.

Most petrol stations in the major cities of Awka, Onitsha, Nnewi, Umunze, Ekwulobia and other environs remained shut and were not dispensing fuel on Wednesday morning.

As a result of this, the few vehicles plying the road increased the transportation fares by over 200 per cent while commuters who struggled to board them were made to pay the high rates.

For instance, commercial transporters charged N500 for a journey that used to be N200, while a journey of N500 was charged between N1,200 to N1,500.

The development caused many commuters to start trekking to their various destinations while others waited at the parks.

It was also observed that many offices and business premises did not open till around 10:30 am because their employees had yet to report for duty.

The reason why the petrol stations were closed could not be ascertained immediately. But the development generated a lot of mixed feelings among the public.

Some people believed that the petrol stations were on strike, others were of the opinion that it was a deliberate attempt by the marketers to increase the pump price of the commodity.

According to The Punch, a tricycle operator plying the Onitsha axis, simply identified as Tochukwu, said, “I bought fuel from the black market for as high as N1,350/litre this morning in order to work, after we discovered that filling stations did not open. Some of my colleagues went to Asaba in Delta State to get the product and that is why transportation fares are high this morning.

“We don’t really know why the filling stations are shut, but we are hearing that is like they are in a meeting somewhere in Awka. We have experienced this kind of situation before and when they came back from their meeting that day, they hiked the pump price of petrol. It’s likely to be the same situation, we are watching as events unfold.”

A commuter at Awka, Chinwe Okeke, said, “I have been standing at the Regina Caelis Bus Stop for over two hours waiting to board a vehicle to UNIZIK, but it has been difficult. The vehicles that are coming have been charging very exorbitantly, I don’t know what is really happening.”

When contacted on the development, the Anambra State Commissioner for Petroleum and Mineral Resources, Anthony Ifeanya, said, “There is no cause for alarm and commuters and motorists should not panic.

“It’s likely that the petrol marketers are in a meeting and whenever they are having such meeting, shutting of petrol stations is a way of compelling every member to attend the meeting. Their meeting usually starts from morning till noon.”

It was also observed that the sudden fare hike also affected both interstate and intrastate movements.

  • Queues In Lagos

It was observed that the NNPC filling station along Cele expressway in Lagos had long queues on Wednesday due to the fact that the pump price was selling at a lower rate of N585/litre when compared to other filling stations.

But the AP filling station located at Barracks along Chemist Bus Stop in Lagos was not selling petrol.

However, there were no queues at Jezco filling station at Oja-Oba, along Pako Bus Stop in Lagos because the station was selling at N650/litre.

The Northwest filling station along the Gbagada expressway had long queues as the pump price at this station was N610/litre.

Heavy queues were seen at the NNPC filling station along the Ogudu expressway with the station selling at N585/litre.

  • Fuel Sells At N710/Litre In Ogun

Residents of Abeokuta, Ogun State capital now buy a litre of petrol for between N650 and N710/litre.

It was observed that while many of the filling stations were not selling fuel on Wednesday, the few independent filling stations that were attending to customers sold the product at between N660 to N710/litre.

However, the NNPC mega station along Abiola Way dispensed a litre for N580 but the queues here were very long.

Eternal Oil along Kobape road with a fairly large crowd sold petrol for N660/litre while others such as KH filling station, Adigbe, among others, sold theirs at N700/litre and above.

  • Scarcity In Gombe

Fuel scarcity has hit most filling stations in the Gombe State metropolis.

Some motorists told our correspondent in the state that they suspected sabotage, as fuel was sold for between N760 to N800/litre depending on the station. The worst hit areas are the hinterlands.

Bako Hussain, a motorist, said, “We know that it is a sort of plan work by the filling stations. How can one open today and tomorrow the next one will open and the one that sold yesterday will not open.”

Also speaking, Hajara Bala, said “It is hard to get fuel in the state as the queues are building across filling stations. I think it’s artificial scarcity. I see no reason why we will have money and still wait with your N760 or more depending on the station.”

Motorists in Sokoto State also decried the continued rise in the price of petrol as the product rose to N830/litre on Wednesday.

Findings (by The Punch) in Sokoto on Wednesday evening showed that most of the filling stations that opened for business in the morning had closed their outlets before 4 pm, making the product more scarce for consumers.

Almost all the big marketers including NNPC, AA Rano, Shafa, among others, were not dispensing the product on Wednesday evening.

The few filling stations that dispensed the product on Wednesday evening sold it at between N800 and N830/litre and still had long queues.

A motorist, Abdul Ahmad, said, “How do you explain a filling station which sells fuel at the rate of N770/litre in the morning, only for you to come back in the afternoon and same people now sell at N820/litre.

“This is very bad and we should stop doing this to ourselves in this country.”

  • NNPC Silent

Meanwhile, efforts to get the NNPC to explain reasons for the queues and the fuel supply shortage in states were unsuccessful.

NNPC is currently the sole importer of petrol into Nigeria, as other marketers stopped importing the commodity due to their inability to access adequate foreign exchange required for PMS importation.

NNPC’s spokesperson, Olufemi Soneye, did not answer calls to his phone when contacted on the matter.

 

Credit: The Punch

Continue Reading

BIG STORY

BREAKING: 118 Inmates Escape As Heavy Rainfall Destroys Suleja Prison

Published

on

The Medium Security Custodial Centre in Suleja, Niger State, sustained significant damage from Wednesday night’s downpour, which also made it easier for 118 prisoners to escape.

This was revealed in a statement released on Thursday and signed by Adamu Duza, the Federal Capital Territory Command spokesperson for the Nigerian Correctional Service.

Duza reported that the heavy rain severely damaged the infrastructure of the detention facility, including a break in the perimeter fence that let the prisoners escape.

As a result, the NCoS moved quickly to initiate its recapturing procedures, working with other security organisations to retrieve ten of the fugitive prisoners.

Efforts to recapture the remaining fleeing inmates are said to be ongoing.

Recognising the vulnerability of aging facilities, many of which were built during the colonial era, Duza acknowledged that the NCoS was committed to modernising its infrastructure.

The statement further noted that the Controller of Corrections, FCT Command, Francis John, assured the public that the situation was under control and urged them to carry on with their daily activities without fear.

The public was encouraged to remain vigilant and report any suspicious activities or sightings of escaped inmates to the nearest security agency.

The statement read in part, “A heavy downpour that lasted for several hours on the night of Wednesday, April 24, 2024, has wreaked havoc on the Medium Security Custodial Centres, Suleja, Niger state, as well as surrounding buildings, destroying parts of the custodial facility, including its perimeter fence, giving way to the escape of 118 inmates of the facility.

“The service has immediately activated its recapturing mechanisms, and in conjunction with sister security agencies, has so far recaptured 10 fleeing inmates and taken them into custody, while we are in hot pursuit to recapture the rest.

“The service is not unmindful of the fact that many of its facilities were built during the colonial era and that they are old and weak. The Service is making frantic efforts to ensure that all aging facilities give way to modern ones.”

“The Controller of Corrections, FCT Command, Francis John, wishes to assure the public that the service is on top of the situation and that they should go about their normal businesses without fear or hindrance,” the statement added.

Continue Reading

BIG STORY

Kaduna Assembly Asks Finance Ministry To Provide Details Of Loans Obtained By el-Rufai

Published

on

The state ministry of finance has been requested by the Kaduna house of assembly to furnish specifics regarding the loans that the former governor, Nasir el-Rufai, took out.

The assembly’s proposal comes after an ongoing investigation into the state’s finances during El-Rufai’s tenure as governor. El-Rufai served as Kaduna’s governor from 2015 until 2023.

A committee was formed by the Kaduna assembly on Tuesday to look into the state’s finances under el-Rufai’s leadership.

The 13-member committee was tasked to investigate loans, grants and project implementation from 2015 to 2023, the period in which el-Rufai served as governor.

In a letter dated April 22, signed by Sakinatu Idris, clerk of the house, and addressed to the commissioner of finance, the assembly requested information regarding payments and outstanding liabilities to contractors under el-Rufai.

“Accordingly, I am directed to request you to forward to the ad-hoc committee memorandum to be accompanied with the under-listed documents and all other documents you consider relevant to the assignment of the committee,” the letter reads.

“(i) (a) Total loans from May 2015 to May 2023 with the approvals of the Kaduna State House of Assembly, the accounts into which the loans were lodged and drawdowns as recorded by Project Finance Managemet Unit (PFMU) & Debt Management Office (DMO).

“(b) Relevant state executive council minutes of meetings, council’s extracts and resolutions with regards to the loans.

“(c) Payments and outstanding liabilities to contractors from May 2015 – May 2023. (d) Reports of Salaries paid to staff from 2016-2022. (e) Dloyd Reports on KADRIS from 2015 to 2023.

“(ii) Terms, purpose and conditions on those loans. (iii) Appropriation items related to the loans.

(iv) All records of payments made to all contractors engaged by the state government and relevant documents from May 2015 to May 2023 including bank statements.

(v) Modalities for payments of contracts.

(vi) Documents of all payments made to the contractors. (vii) Sales of government houses/properties and accounts the proceeds were lodged and how the money was expended.

“Thirty (30) copies of the memo/documents should reach the office of the clerk to the legislature on or before Thursday, 25th April, 2024 by 10:00 am.”

On March 30, Uba Sani, governor of Kaduna, said his administration inherited a debt of $587 million, N85 billion, and 115 contractual liabilities from the el-Rufai administration.

Continue Reading

Most Popular