Petrol price hike: Shettima summons Lokpobiri, Ribadu, Kyari

IBRAHIM QUADRI with agency reports

Vice President Kashim Shettima yesterday held a meeting with the Minister of State, Petroleum, Heineken Lokpobiri, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari and the National Security Advisor, NSA, to discuss controversy surrounding the fixing a new pump price for petrol.

Also at the meeting held on Thursday at the Aso Villa was the Executive Director of Nigeria Mainstream, Downstream Petroleum Regulatory Authority (NMDPRA), Kalu Okuoha.

The meeting was held at the instance of President Bola Tinubu.

The meeting also discussed the issue of scarcity of petrol across the country.

Speaking to State House Correspondents after the meeting, Lokpobiri said : “We were summoned by the Vice President who was directed by Mr. President to summon this meeting and we have been with him to brief him about what is going on across the country.

“And what is important is for us to convey to Nigerians that the President is empathetic about what is going on in the country.

“He is concerned about the hardship of Nigerians, and that was why he directed the Vice President to call this meeting, for us to reflect on what is going on in the country.

“What is important is that products are available in the country, and we believe that between now and the weekend, there will be availability of products across the length and breadth of the country.

“The price could be high in some other areas, much higher in some other locations, and in some locations, much more than you know in other areas.

“But we believe that by the time there is availability of products across the country, the price itself will stabilise.

“But what is important is that the government is not fixing prices.

“This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigeria to know.

“The summary is that the President is empathetic about what’s going on. That’s why he directed this meeting.

“There is enough product in the country to be able to meet the demands of Nigerians.

“There should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians.”

The Executive Director of NMDPRA, Kalu Okuoha, while briefing newsmen also said : “All regulatory efforts are now geared towards stabilizing supply, with a resultant impact that it will be positive also on the stability of price.

“To that objective, the regulator is ensuring that there are increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit for truck-outs as well.

“More important also is the reinforcement of the support being given to local refiners because with increased production from them, we, indeed, like the minister, has said, there will be a higher supply,

 

..Increase ill-timed, grossly insensitive, says Reps Minority Caucus, demands immediate reversal

THE Minority Caucus of the House of Representatives has condemned the recent increase in the price of petrol by the Nigerian National Petroleum Company Limited (NNPCL).

Rep. Kingsley Chinda, the leader of the Minority Caucus in the House, said this in a statement on Thursday in Abuja.

He said that the development was not only ill-timed but also grossly insensitive to the harsh economic conditions currently being experienced by Nigerians across the country.

The News Agency of Nigeria reports that Chinda stated that the hike is coming at a time when the nation is grappling with unprecedented economic challenges.

He added that a further increase in the price of gasoline would not only exacerbate the suffering of the average Nigerian.

The lawmaker said that the ripple effects of such an increase were far-reaching, impacting the cost of transportation, food, and other essential goods and services.

He said that this would ultimately erode the already fragile purchasing power of millions of citizens, pushing more families into poverty.

According to him, the Minority caucus is deeply concerned that this decision by the NNPC appears to have been made without adequate consultation with relevant stakeholders.

This, he said, includes the National Assembly, which represents the interests of the people.

He said that the unilateral action disregarded the principles of transparency, accountability, and fairness, which should guide decisions affecting the lives of the citizenry.

“We, therefore, call on the Federal Government to urgently intervene and reverse this unwarranted increase in petrol prices.

“We also urge the government to explore and implement more sustainable measures to stabilise the economy without placing an additional burden on the people.

This, according to him, includes prioritising the rehabilitation and upgrading of our local refineries and curbing corruption within the petroleum sector.

He urged the Federal Government to ensure that subsidies genuinely benefitted the masses rather than a few privileged individuals.which will stabilize the price. That’s the effort that the regulator is making.”

 

Afenifere begs Tinubu to order price reversal

The pan-Yoruba socio-cultural and political organization, Afenifere, has called on the federal government to stick to the claim by the Minister of State for Petroleum, Mr. Heineken Lokpobiri, that President Bola Tinubu administration did not instruct the Nigerian National Petroleum Corporation Limited (NNPCL) to increase the fuel pump price by ordering the corporation to reverse the announced increment.

In a statement signed by the organization’s spokesman, Comrade Jare Ajayi, Afenifere asserted that Nigerians are currently going through a lot of challenges as a result of biting socio-economic crunch and the attendant hardships.

“It is therefore a wrong time to come up with any policy that will increase the undesirable challenges Nigerians are going through presently. Failure by the NNPCL to reverse the latest increment in fuel price will rub off negatively on some policies of Tinubu administration to ease things for the citizens. Policies such as the Students Loan Scheme and Consumer Credit Scheme that are just taking off”.

It would be recalled that the NNPCL, on Tuesday, September 3, 2024 raised the pump price of petrol to N897 per litre from the official price of N617.

The announcement came just a few days after the national oil company said it was facing challenges of huge debt burden estimated at $6.8 billion.

The group explained, “Ironically, the announcement of the debt came just not long after the same corporation announced that it made a profit of N3.3 Trillion Net Profit in its 2023 Audited Financial Statement.

With the latest increase in the price of Premium Motor Spirit (PMS) otherwise known as petrol to N897 per litre, the cost of fuel in Nigeria has risen by 460 per cent in 15 months.

Afenifere contended that it is curious that an organization that declared a profit running into trillions of Naira could, almost in the same breath, claim that it is indebted to the tune of nearly seven billion US dollars.

“Why not pay off the debt from the available fund before declaring it as profit?He asked.

The statement further argued that the oil corporation seems to be making Nigerians pay for its inefficiency.

“It is a common knowledge that the cost and availability of energy such as petrol, gas, electricity, diesel and kerosine are major factors not only in production and services but also on the quality of well-being that Nigerians can enjoy.

“Hikes in prices of these energy sources have astronomically increased the costs of services and commodities, reduced the disposal incomes of average Nigerians and heighten their health risk. The combination of all these are making a daily living an onerous task for the majority of the citizens. Considering the fact that millions of the Nigerians had been described as being multi-dimensionally poor, the recent hike in costs of fuel and electricity are uploading the number of people in that category phenomenally”.

While urging the federal government, through the appropriate channel(s), to immediately order the NNPCL to reverse the price increase, Afenifere feared that failure to do so may imperil the assurances being giving by Tinubu that Nigerians’ pains will soon be over.

.NNPCL supplies 30m barrels of crude oil to Dangote Refinery

‘To receive additional 17.8m barrels between Sept and November’

 

Meanwhile, The Nigerian National Petroleum Company Limited (NNPCL) has said it would supply 17.8 million barrels of crude oil to Dangote Refinery between September to November.

NNPCL Vice President, Downstream, Mr. Adedapo Segun, said the “17.8 million barrels of crude oil is part of the Federal Government’s push to drive local production of petroleum products.”

A statement by Senior Special Assistant to President Bola Tinubu on Media, Temitope Ajayi, on Thursday, stated that NNPC has so far supplied 30 million barrels of crude to the refinery to start its operation.

“Dangote Refinery announced early in the week, at a press briefing addressed by its Group Chief Executive, Aliko Dangote, that it is now ready to release its PMS to the market.

“According to Mr. Adedapo, 6.8m barrels in 7 cargoes of crude oil will be delivered to Dangote Refinery in September, while another 11 million barrels will be delivered in November.

“The VP Downstream further revealed why NNPCL is the sole importer of PMS in the country, noting that market conditions have not made it possible for independent marketers to bring in products as a result of forex illiquidity and pump price that is far below landing cost,” Ajayi wrote.

The statement noted that Dangote Refinery would also sell its petrol to independent marketers who meet stipulated conditions and not only NNPCL.

“Contrary to media reports that Dangote Refinery will only sell products to NNPCL as sole off taker, Mr. Adedapo said that Dangote will sell products to other marketers once the market conditions are right for them to play, adding that NNPCL for now will act in public interest as provider of last resort as provided for in the Petroleum Industry Act,” the statement on his X handle stated.

.Company yet to lift petrol from our refinery – Dangote

 

The Dangote Petroleum Refinery says the Nigerian National Petroleum Company (NNPC) Limited has not commenced the commercial lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from the facility.

A statement by Dangote Group’s Chief Branding and Communications Officer,

Anthony Chiejina said the company had yet to finalise a contract with the NNPC.

The statement reads: “Our attention has been drawn to a headline, ‘NNPC lifts Dangote Petrol, sells at N897 per litre,’ published in the BusinessDay Newspapers of Wednesday, 4 September 2024.

“We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.

“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalise our contract with NNPC.

“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities.

“We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter.

“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”

.As Atiku congratulates Aliko on fuel production

However, Former Vice President Atiku Abubakar has congratulated and appreciate the efforts of Alhaji Aliko Dangote, as the Dangote Refinery begins production of PMS.

According to him the development “demonstrates his tenacity and ‘can do’ spirit and his belief in his fatherland.

“This remarkable accomplishment is beyond a demonstration of the business acumen of just one man. It is also a manifestation of what corporate Nigeria can do to recover the Nigerian economy and make it strong, dynamic, and resilient.

“This resonates with my dream of having an enlarged private sector presence in the Nigerian economy. I am an unrepentant advocate for a strong and visible participation of the private sector in strategic sectors of the economy, either alone or in partnership with the state.

“Nigerians are aware of the many obstacles Aliko had to overcome to achieve this win. If the private sector must step forward to invest, create jobs, and drive growth, the government must roll out more supportive regulations and deliver them efficiently.

“The worst damage done by the APC-led government since 2015 is to unleash difficult-to-implement-and-sustain ‘reform’ initiatives that erode private sector confidence in our economy and drive investors away from our shores.

“There are a few major milestones ahead as Nigeria journeys toward attaining energy self-sufficiency. I hope Aliko will continue to lend his unwavering support on this journey”.