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NNPC: petrol subsidy now N26 per litre, Baru promises to end Fuel scarcity in two days

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Petrol is being subsidised to the tune of N26 per litre, Nigerian National Petroleum Corporation (NNPC) Managing Director Maikanti Baru said yesterday.

According to him, the landing cost of petrol (PMS) is N171 per litre;  it is being sold at the pump at N145 per litre – a difference of N26.

Baru told reporters in Abuja that the consumption of PMS had risen to over 50 million litres per day, due to hoarding and diversion.

He said the product was being smuggled across the borders because of the price disparity that exists between Nigeria and the neighbouring countries.

Baru said the Cost, Insurance and Freight price of PMS is $620 per metric tonne, adding that at N305 to a dollar, the landing cost translates to N171 per litre.

The Federal Government has approved preferential and speedy treatment for vessels carrying petrol, to end the lingering scarcity, according to the NNPC boss.

The Navy, Nigerian Ports Authority (NPA), Customs and Excise and the Nigerian Maritime Administration and Safety Agency (NIMASA) are said to be expediting the clearance of fuel vessels and anchorage services to facilitate speedy product transfers to various depots, including during weekends and public holidays.

The NNPC helmsman noted that President Muhammadu Buhari was deeply concerned about the fuel crisis and had ordered all stakeholders, including security agencies, to ensure a speedy resolution of the situation.

The NNPC, he said, has begun a 24-hour loading and sales operations at all depots and its mega stations across the country.

“Major marketers were also advised to carry out 24-hour operations, most of who have been complying. This has increased load-out from the depots significantly and continuous sales at the filling stations nationwide,” Baru noted.

He affirmed that in addition to the regular supply circle, the NNPC had programmed the delivery of additional 300 million liters in December 20l7 and January 2018 to beef up national reserves to 45 million litres per day, well above the normal consumption requirement of between 27 and 28 million litres per day.

He added that in the last two weeks, the national truck-out capacity had strengthened up to an average of l,500 trucks, about 52 million litres per day, which, he explained, was higher than the normal consumption of 850 trucks per day.”

The NNPC boss said at present, 13 vessels, with an average capacity of 650 million litres, were discharging the commodity at ports across the country, noting that three vessels with the commodity were coming in before the end of the week, bringing the combined quantity of the product in depots to 814 million litres of petrol till the end of the month.

He added that 14 shuttle tankers, with a combined capacity of 187 million litres of the commodity, would be discharging the product at various destinations across the country in the next three days.

In addition to the importation of the product, Baru noted that the Port Harcourt and Kaduna refineries were contributing about one million litres per day and 2.8 million litres per day of PMS. He said since the fuel crisis began, both refineries had contributed about 61 million litres.

To ensure the speedy resolution of the crisis, Baru said the NNPC had activated the ‘Fuel War Room’, comprising NNPC, Department of Petroleum Resources, DPR, Petroleum Products Pricing Regulatory Agency, PPPRA and Petroleum Equalisation Fund, PEF.

The team is coordinating all interventions for supply and distribution of PMS nationwide. With the support of security agencies, the team is already working round the clock to ensure a speedy resolution of the current fuel situation.

With all these measures, Baru said, and if full compliance is achieved, the crisis would end within the next two days, adding that efforts were in place to ensure that the crisis did not go beyond this week.

Baru also accused black marketers of sabotaging efforts to end the fuel crisis, stating that most of the peddlers permanently put their vehicles on queues at petrol stations, and after purchasing, discharge the products into containers and return to join the queues.

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

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#NNPC

#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:

Mondays:

4:30 am to 9:00 am

12 noon to 2 pm

4 pm to 7 pm

Tuesdays:

5 am to 10 am

12 noon to 2 pm

4 pm to 7 pm

Wednesdays:

5 am to 9:30 am

11:30 am to 2 pm

3:30 pm to 7 pm

Thursdays:

4 am to 10:30 am

12 noon to 3 pm

3 pm to 7 pm

Fridays:

4 am to 12 noon

1 pm to 7 pm

Saturdays:

4 am to 12 noon

1 pm to 7:30 pm

Sundays:

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.

 

CREDIT: NAIRAMETRICS

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

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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

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#NNPC And #DAEWOO Group

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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