Oil & Energy
LG Bosses Task Government On Kerosene Distribution
Some local government chairmen in Lagos State have called on the NNPC and Capital Oil and Gas Ltd. to commence the suspended mobile distribution of kerosene to end users in Lagos.
The chairmen told The Tide correspondent in separate interviews in Lagos that NNPC and Capital Oil and Gas Ltd.should sustain the direct sale of the product to households.
Chairman of Amuwo Odofin Local Government Area, Mr. Adewale Ayodele described the government direct sale initiative as a laudable venture that needed the support of all stakeholders for its sustenance.
Ayodele said that residents in Lagos had over the years suffered from shortage of kerosene arising from the product racketeering by some sales outlets.
Our correspondent reports the NNPC through Capital Oil and Gas Ltd. distributed the product directly to people in some local government areas at the height of the shortage in June this year.
“We did not believe that the common man will get kerosene in Lagos with the high price in some filling stations. We saw the good intention of the government through mobile truck dispensing in Lagos.
“We appeal to NNPC and Capital Oil and Gas to resume and ensure the sustainability of the direct sale to the people initiative,’’ he said.
Mr Gbolahun Bagostow, Chairman of Somolu Local Government Council, said the “kero-direct programme” should be re-launched to move the country forward.
He said that direct dispensing of kerosene curtailed artificial scarcity during the period and saved costs from exorbitant prices at filling stations, adding that direct distribution of kerosene was the most popular fuel distribution method for the masses.
“Direct distribution of kerosene provided succour to residents in some local government areas which have suffered so much because of the product shortage.The programme was appreciated by the communities. We will ensure that everybody gets equal quantity of kerosene at N50 per litre as directed if it is re-launched,’’ he said.
Bagostow said that over 1,300 residents of Somolu and its environs bought kerosene from the mobile trucks during the last exercise, pointing out that the council would ensure that the trucks were adequately protected and mechanism put in place to ensure nobody bought more than 25 litres at a time.
Chairman, Epe Local Government Council, Mr. Olusegun Agbaje appealed to the government to extend the direct sale of kerosene to Epe and its environs, saying that the NNPC/Capital Oil direct sale scheme was to alleviate the sufferings of Nigerians.
“The scheme will afford the people easy access to the product and reduce the use of charcoal and firewood in the rural areas.
It would be recalled that the direct sale of kerosene, a joint project of the NNPC and Capital Oil and Gas, was organised in response to kerosene scarcity in the country. The initiative was condemned by the Surface Tank Kerosene Dealers Association and Peddlers. Kerosene scarcity has now hit Lagos and its environs again as the country prepares for the Christmas period.
The Tide investigation reveals that a litre of kerosene now sells for between N130 and N180 in some filling stations and long queues have resurfaced at the filling stations and many buyers have resorted to black markets where a litre goes for about N200 instead of the N50 official pump price.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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