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Petrol shortage hits America, fuel prices go up



United States has been hit by petrol or gasoline shortage as the effect of Tropical Storm Harvey and the flood it brought to Texas and environ disrupted production on the Gulf Coast.

Retail U.S. gasoline prices rose 2.8 percent from Friday to Saturday as refineries warned customers about the fuel-supply shortage.

They were at $2.59 a gallon, according to motorists advocacy group AAA. It represents a 16.7 percent rise in the average price from a year ago.

Prices have risen more than 17.5 cents since Aug. 23, before the storm began.

Average prices in Texas, the epicenter of the storm, rose more than 3 percent from Friday to Saturday, and are up 12 percent from a week ago.

Refiner Motiva has warned customers along the route of the largest U.S. fuel pipeline to prepare for shortages after Harvey shut refineries and cut supply to the line, said a source at a fuel distributor supplied by Motiva.

Harvey shut refineries that can process up to 4.4 million barrels per day (bpd) of crude. The plants shut down include Motiva’s 603,000 bpd facility in Port Arthur, Texas, the largest refinery in the country.

Nearly half of the U.S. refining capacity is in the Gulf Coast, a region with proximity to plentiful crude supplies including Texan oil fields and also Mexican and Venezuelan oil imports.

“The refineries were built on the Gulf Coast with the idea that we’re going to import,” said Sandy Fielden, director of oil and products research at Morningstar in Austin, Texas, “That’s why we’re having problems today because that’s where they were all built.”

The reduction in fuel supplies has forced the Colonial Pipeline, which supplies fuel from refineries near the Gulf of Mexico to the U.S. Northeast, to reduce supplies.

Convenience store and gas station chain Circle K, a big buyer from Motiva, said the company was working with a limited supply.

Some crude oil pipelines have restarted operations. Magellan Midstream Partners announced late Friday that it resumed operations on its BridgeTex and Longhorn crude oil pipelines. The two pipelines transport around 675,000 barrels per day (bpd) of West Texas crude oil into East Houston.

The company says it expects to resume service on its Houston crude oil distribution system over the weekend.

U.S. crude production continues to stall following the storm. As of Friday, volume of crude production still shut-in had declined to about 153,000 bpd, down from 324,000 bpd just two days ago.


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#NNPC: You Are Likely To Spend Up To 8 Hours Buying Fuel Today





#NNPC: You Are Likely To Spend Up To 8 Hours Buying Fuel Today—-According to Independent research carried out by Newsmen last week and over the weekend has revealed that the average motorist in cities like Lagos and Abuja will likely spend up to 8 hours to get fuel today.

Peak periods: As observed by Newsmen, between the hours of 4 am and 7:30 pm from Monday to Sunday, the peak periods, which signify longer hours at filling stations across several locations in Lagos and Abuja are:


4:30 am to 9:00 am

12 noon to 2 pm

4 pm to 7 pm


5 am to 10 am

12 noon to 2 pm

4 pm to 7 pm


5 am to 9:30 am

11:30 am to 2 pm

3:30 pm to 7 pm


4 am to 10:30 am

12 noon to 3 pm

3 pm to 7 pm


4 am to 12 noon

1 pm to 7 pm


4 am to 12 noon

1 pm to 7:30 pm


8 am to 12 noon

2 pm to 7:30 pm

Growing trends

Motorists favor NNPC filling stations in Abuja: Newsmen research showed that filling stations owned by the Nigerian National Petroleum Company (NNPC) in suburbs like Kubwa, Karu, and Wuse in Abuja usually sell fuel from morning till nightfall, giving motorists the chance to buy fuel at N180 per liter.

Auwal Mohammed, a Lagos-based civil servant told Newsmen that he only buys fuel from NNPC because their fuel prices are less than what other stations are selling, but he suffers a lot for it because NNPC queues are longer. But in the end, he can fill up his tank at the rate they are selling.

As noticed by Newsmen, customers spend up to 8 hours in never-ending queues at NNPC stations, which impacts productivity. Some motorists have on occasion, had to sacrifice work hours just to get fuel directly from filling stations.

Nigerians are leaving their cars at home: Some have left their cars at home and tried to use the public transportation system, where they encounter exorbitant prices due to fuel scarcity. Tunde O, an Abuja-based motorist who spoke to Newsmen said he had abandoned his car at home in favour of the public transportation system for his work commute from Mararaba to Garki Area 8. He said he pays an average of N1000 for his daily commute now and that the drivers of the Hiace buses he uses are uncompromising when it comes to fare charges. He said:

  • “That’s how I know that fuel scarcity is a big challenge for them. There is no fuel and some filling stations have started locking up even before nightfall, so some of these bus drivers have to patronise the black-market traders and from what I hear, some of them sell as high as N600 per liter, depending on the location.”

Adapting to the situation: Jonathan Useni, an Abuja-based contractor told Nairametrics that the population is larger in areas like Nyanya, Mararaba and One-man Village compared to places like Asokoro, Wuse, Garki and Maitama. So, he and some other motorists, who live in Nyanya have worked out a system.

  • “Around 6 pm on weekdays, when we are sure that many people have closed from work and are on their way home and a lot of vehicles are locked in traffic, we drive from our areas in Nyanya to places like Wuse, Maitama, and surrounding areas to buy fuel. This is because those stations usually do not have long queues like you would see in the areas I mentioned, especially in the evenings. We can encounter queues or even locked stations, but, in the end, we must buy fuel.

Some filling stations are not serving motorists: Newsmen also noticed that some filling stations usually lock up during supposed work hours. It was revealed that owners/managers of these stations restrict sales due to the exorbitant prices they have to pay to private depot owners to get fuel. Nairametrics had earlier reported that private depot owners sell fuel to independent marketers at N195 to N210 per liter, as opposed to N148 per liter. Private depot owners are complaining about the cost of transportation from the mother vessel to their private depots because of the escalation of the cost of the dollar, as they buy their dollars at the black-market rate.

Nigerians are desensitized: Nigerians are stressed out from the fuel scarcity challenge, however, there are scarce complaints across the board. Chukwudi Nelson, a commercial driver in Lagos told Nairametrics that Nigerians are no longer complaining because they know that the powers that be do not care, so they just tighten their belts and move on.

For the record: November 23 data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that the country had over 388 million liters of land-based stock of fuel as of November 22, 2022.



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Sylva: FG To Grow Oil Reserves To 40Billion Barrels By 2025




FG To Grow Oil Reserves To 40Billion Barrels By 2025

Sylva: FG To Grow Oil Reserves To 40Billion Barrels By 2025—-Chief Timipre Silva, Minister of Petroleum Resources, says one of the key mandates of the ministry is to grow oil reserves from the current 37 billion barrels to 40 billion barrels by 2025.

Sylva said this on Tuesday at the official ground-breaking of the Oil Prospecting Licenses (OPLs) 809 and 810 at the Kolmani River II well located at a border community between Bauchi and Gombe states.
The Kolmani Integrated Development Project was inaugurated by President Muhammadu Buhari with some top government officials including governors, cabinet members, captains of industry and Nigerian National Petroleum Company Ltd. (NNPCL) officials, among others in attendance.
He said he was particularly excited at the partnership between NNPCL, Sterling Global Oil, and New Nigeria Development Commission (NNDC), to carry out the drilling campaign.
“This is a testimony of the fact that the hydrocarbons sector still holds promise of returns on investment, highlighting the role that this resource will continue to play in the global energy mix,” Sylva said.
He recalled that in 2019 when the NNPC announced that it had encountered oil in ‘commercial quantities’ at the Kolmani River well II, the nation celebrated the news as a fitting outcome for years of geological investigations.
“In spite of the enormity of challenges that NNPC was confronted with, the day has come when we can collectively witness and celebrate drilling for hydrocarbons in the North of our dear country,” he said.
He said the ministry was committed to finding and developing ways to end energy poverty, create shared prosperity and enthrone sustainable development.
Sylva said the Petroleum Industry Act (PIA) provided regulatory support and framework for achieving this mandate by providing Frontier Exploration Fund which the NNPC could utilise to deploy world-class cutting-edge technologies to de-risk exploration in frontier basins.
“The commencement of drilling of Kolmani fields which could hold as much as one billion barrels crude oil reserve, will significantly contribute in boosting our oil reserves and ensuring our continuous energy sufficiency,” he said.
He thanked the President for demonstrating his commitment to the uninhibited development of the petroleum industry.
In a remark, the  Group Chief Executive Officer, NNPCL, Malam Mele Kyari, said the discovery of commercial oil and gas deposit at Kolmani oil field in 2019 was further appraised and validated by Kolmani team.
Kyari, while thanking the Bauchi and Gombe states governments and their partners  said development of framework was put in place to guarrantee financing and technology required to deliver the integrated project.
He assured the President that it would leverage every mechanism including asset based financing framework for delivery of the project for it to stand out as the administration’s lasting legacies.
Dr Ahmad Lawan, the Senate President, also lauded the President for achieving a landmark feat, adding that the Petroleum Industry Act (PIA) provided in section nine, five and four 30 per cent of profit from oil exploration.
Lawan said that Bauchi and Gombe states would soon be benefiting from the 13 per cent derivation and the host community development fund which would have serious impact on the lives of the host community dwellers.
He urged the government to use revenue generated from oil to improve livelihood of the dwellers and also to ensure deployment of  technology as well as ensure safe environment.
The senate president,  while decrying the worrisome sight of Niger-Delter region, especially Ogoni Land advised operators of the oil fields to avoid contaminating the environment.
In an address, the Group Managing Director, NNDC, Shehu Mai-Borno, pledged commitment toward the realisation of the integrated development project.
Also speaking, the Managing Director,  Sterling Oil Exploration and Energy Production Company Ltd., Mr Mohit Barot,  presented a short video indicating the project overview.
Barot, while thanking the Federal Government for finding the company as a reliable partner for achieving energy security said it had secured requisite financing required for the project.
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JUST IN: #NNPC And #DAEWOO Group Sign MoU For Rehabilitation Of Kaduna Refinery





JUST IN: #NNPC And #DAEWOO Group Sign MoU For Rehabilitation Of Kaduna Refinery—President Muhammadu Buhari has expressed delight as he witnessed signing of the Memorandum of Understanding (MoU) between Nigerian National Petroleum Company Ltd and Daewoo Group for the rehabilitation of the Kaduna refinery.

Mr Femi Adesina, the President’s Special Adviser on Media and Publicity, confirmed this development in a statement on Thursday in Abuja.

Adesina said the president was particularly excited as the signing came against the back of ongoing rehabilitation works at Warri refinery by same Daewoo Group of South.

According to the presidential aide, the Warri refinery rehabilitation works, when completed, will at the first instance, deliver fuels production before the first half of 2023.

Adesina quoted the Nigerian leader as saying: “Daewoo Group has massive investments in the automobile, maritime and other sectors of our economy.

”I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners.”

The president said he looked forward to the delivery of ongoing projects, especially at the Warri and Kaduna refineries, and the NLNG Train Seven.

”This no doubt will open many more windows of opportunities for Daewoo and other Korean companies in Nigeria.

“I thank you for your faith in Nigeria,” Buhari told the Korean conglomerate at the end of the significant ceremony on the last day of his visit to the Asian country to attend the First World Bio Summit.

The News Agency of Nigeria (NAN) reports that President Buhari is expected back to Abuja from Seoul, South Korea, on Thursday night. (NAN)

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