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Averting NUPENG Strike Over Eleme Road

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For the past two months, there has been a public outcry over the terrible situation of the road from Eleme junction to the Refinery in Port Harcourt, the Rivers State capital.
For millions of Nigerians plying the route on daily basis, in the course of private and public businesses, the condition of the road has not only become deplorable but impassable.
A journey across this axis of the road which ordinarily should take about 20 minutes, now takes about four hours under very frustrating conditions.
The National  Union of Petroleum and Natural Gas Workers (NUPENG), particularly  the Petroleum Tanker Drivers (PTD) branch of the union, has consistently appealed to the Federal Government to give urgent attention to the road.           The body said, if permanent attention cannot be given to the road, at least, let temporary measures be provided to enable its members operate on the road in view of the peak of the rainy season.
Tanker drivers who ply the road daily while distributing petroleum products from Eleme Refinery to different parts of the country have lamented that the condition of the road has become a nightmare and a major frustration in their business operation.
Disappointed that their appeals have not been able to attract the Federal Government’s sympathy or attention to their plight, the body threatened to withdraw its members services to the nation.
The Rivers State chairman of PTD, Comrade Lucky Etuokwu, in his several media out busts had explained the pains, frustrations and heavy maintenance costs that petroleum tanker drivers have to bear due to the deplorable road condition.
According to him, there is need for government to fix the road before the peak of the rainy season because of the flood, occasioned by lack of drainage, covers the road, tanker drivers would find it difficult to meander through the bad spots and that this could lead to ship-off and eventual fall of trucks.
In an event of a fall, the petrol fire likely to follow could take lives of the drivers and other persons, as well as vehicles and structures close to it, adding that the  petroleum products content of the truck which runs into millions would also go.
Etuokwu consistently called on the Federal Government as well as the Rivers State Government to fix the road to forestall the dire consequences, threatening that the body would have no option than to withdraw the services of its members, if government fails to do the needful.
Just as PTD is calling and wailing, the parent organization, NUPENG also aligned with it and added that if the appeals fail, it would also embark on a nationwide strike.
AS the voices of PTD, NUPENG and the public reached a crescendo, there came a ray of hope when the Minister of Power, Works and Housing, Babatunde Fashola, arrived the state (barely two weeks ago) on his official visit to Afam Power Plant in Oyigbo  Local Government Area. Expectation was that the minister would take the advantage provided by his visit to make clear statement about Federal Government’s concern on the road. But such was not to be.
Again, by fortunate coincidence, the Minister of Transportation, Rotimi Amaechi, an indigene of the state, flew into Port Harcourt on the occasion of his 52nd birthday celebration. Amaechi’s visit provided yet another hope for the suffering Nigerians that the minister would, at least, given an indication of the government’s feelings, particularly when the issue impinges on transportation. But, again, this was to no avail.
They had wondered, does it mean that, the public outcry over the dangerous situation of the road does not matter to the Federal Government? Or is the Federal Government too busy with more pressing issues that it cannot consider the serious threat being posed to lives of the citizens and the economy of the nation in view of the strategic position of their road? Where then lies the hope of the people?
Apparently worried by the seemingly not-so-important attitude of the government to the road, youths of some local government areas along this axis of the East West Road, rose up Friday, threatening total blockage of the road. According to the spokespersons of the youths, if in seven days, nothing was done by government, they would block the road and bring to a total halt all movements.
Should the ultimatum of the vexing youths elapse and the route be totally blocked in protest? Should the tanker drivers withdraw their services? Should NUPENG call out oil workers on a nation-wide strike before the needful is done? The consequences would be so dire to our national economy that is already at a strait.
The consequences of the two actions of youths and oil workers would indeed be too far-reaching. There would be crisis in the distribution of petroleum products, creating scarcity and price increase nationwide. NUPENG strike means calling on oil workers to down tools resulting in a replay of our old ugly tunes. A mental picture of rampaging youths blocking this busy road would be terrible and better left for the imagination.
The best option is for the Federal Government to get on top of the situation and save the nation, a trauma of these ugly events which might follow.
Apart from the refinery, this axis of the East-West Road connects the Federal Ocean Terminal (FoT), the Naval College, Indorama the biggest petrochemical plant in the West African sub-region, and of course, the Onne Oil and Gas Free Zone (OGFZ) which hosts over 250 companies.
There is no gain saying that the road plays a major role in the economic life of the nation. But neglect of this road has become historic and many believe that the earlier it is given the attention it deserves, the better for the nation.
The road in question is a Trunk A road whose responsibility to maintain is that of the Federal Government. But the inability of the central government to give adequate attention to the road has directly pushed pressures on Rivers State Government.
Recall that at the inception of the present administration in the state led by Governor Nyesom Wike, it took remedial actions to fix the road which was in a terrible condition and also affecting negatively the operations of companies in the area.
Governor Wike then reached out to the managements of some of the companies operating in the area and initiated a temporary rehabilitation of parts of the road. This step was able to sustain public movement till the present period.
Before Wike’s administration, the preceding administration in the state led by Rotimi Amaechi invested so much resources and funds on Federal Government roads in the state with the hope that government at the centre would refund. But the state could not get its refund till that administration elapsed. The reluctance or unwillingness of Federal Government to refund states what they spent in fixing Trunk A roads in their various areas has become a big discouragement for them to continue.
To be sincere to the Federal Government, it had made efforts in the past to rebuild the East-West road, but that was not achieved. Billions of naira was reportedly uncovered to have been defrauded the system by the contractors who blew the billions and left us all in this mess. Yet,  it is the responsibility of the Federal Government to make these contractors to cough out our billions.
Federal Government is expected to find a lasting solution to this East-West road that had for decades remained a nightmare to travelers. It could through its agencies and with the support of the National Assembly save us all from the mess by declaring a state of emergency on this road that is a life-wire of the nation’s economy.
But while expecting the Federal Government’s permanent solution, Governor Wike of Rivers State can also do good by finding a temporary measure to the road. In Wike’s score card, road construction remains one of his winning points and this feat cannot be sustained if people and residents of Rivers State continue to suffer avoidable trauma due to terrible conditions of Trunk A roads in  the state.
In fixing the dangerous spots on the Eleme Junction-Refinery road axis of the East – West Road, let Governor Wike also extend this temporary measure to Eleme Junction to Oyigbo axis of Aba Road which is also a Trunk A road and in a state of abandonment.
By fixing these federal roads so far neglected by the central government, Governor Wike  would not only be improving his profile as “Mr Project”, but would also be helping the nation in averting another national disaster that goes with a nation-wide oil workers’ strike.

Chris Oluoh

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Oil & Energy

The Diesel Crunch Will Persist Well Into 2027

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The recent rise in crude oil flows out of the Strait of Hormuz isn’t solving the world’s most pressing fuel problem—the diesel crunch and record diesel prices that start to feed into the wider economy.
While Middle East crude oil flows are nearing pre-war levels, global diesel supply is much lower due to refinery constraints in the Middle East and Russia that the rest of the world cannot offset.
The diesel squeeze hiked wholesale and retail prices to record highs in the middle of September as the market realized that crude oil supply does not equal refined product supply, and demand for middle distillates started rising seasonally from agriculture, road freight, and the coming winter.
There isn’t an easy fix to the crunch, neither the G7’s promised release of 100 million barrels of oil, including diesel, nor the controversial Trump-Putin deal for the U.S. to buy Russian diesel.
The global diesel squeeze will end when markets return to some kind of normality, which is months away, at best, and certainly not before the U.S. midterm elections on November 3.
The current crunch in the diesel and gasoil markets is set to extend into the middle of next year, the International Energy Agency (IEA) said in its monthly Oil Market Report published this week.
Counter-seasonally, gasoil and diesel markets tightened in the third quarter of 2026, amid prolonged disruptions in refinery operations in the Middle East and Russia, the agency noted.
“Combined with much heavier-than-normal inventory declines in 2Q26, this has deprived global gasoil markets of crucial stock cover ahead of the peak winter demand season,” the IEA said.
But the relatively price-inelastic diesel demand has remained strong, supported by government measures aimed at easing the impact of high prices on consumers, according to the agency.
“Falling inventories, soaring cracks, and steepening levels of backwardation have signalled the need for additional supplies,” the IEA said.
Even if refinery throughput recovers rapidly into the end of this year, gasoil supply will fall short of meeting demand this quarter, “suggesting that the replenishment of lost inventories, outside of typical seasonal fluctuations, is unlikely before 2H27.”
Global diesel exports fell by 700,000 barrels per day (bpd) in September from a year earlier, as a 1.3-million-bpd loss from Russia and the Middle East was only partly offset by higher supply from other sources, the IEA has estimated.
“As the Iran war manifests itself through restricted product availability, soaring fuel prices and a deteriorating economic outlook, diesel will register 25%” of the expected 2.6 million bpd decline in global oil demand this year, the agency noted.
Global diesel prices have eased from the all-time highs of more than $200 a barrel reached in September, but diesel benchmarks remain nearly double the price of crude oil and their pre-crisis levels, the IEA said.
While growing volumes of crude oil have moved out of the Persian Gulf and the Middle East in recent weeks, the barrels come at a high cost and high risk, Ole Hansen, Head of Commodity Strategy at Saxo Bank, wrote in an analysis this week.
“Depleted inventories, elevated freight costs and persistent geopolitical risks explain why crude prices have remained stubbornly high despite improving physical flows,” Hansen said.
Related: Europe’s Gas Prices Close to 2022 High as Hormuz LNG Flows Remain Limited
The diesel market, however, is a whole new ball game. Additional crude oil exports cannot ease the reduced refinery output in the Middle East, which was a major diesel and jet fuel supplier before the war.
“While crude shipments have recovered substantially, refined-product exports remain severely constrained,” Hansen said.
“The clearest evidence that the market remains far from normal is the continued strength in refined products, particularly diesel.”
Both U.S. ultra-low sulfur diesel (ULSD) and European gasoil futures moved back to trade above $200 per barrel equivalent this week, “reflecting a shortage that additional crude exports alone cannot resolve,” the strategist said.
This shortage cannot be solved with high crude oil exports. The global energy system needs normalization in all major supply chain components from production to transportation and refining for prices to ease. The oil crisis has now turned into a shipping crisis and a refining bottleneck, which add to the supply squeeze in products and to inflation pressures.
“Record diesel prices are already having broad economic consequences by raising the cost of goods and impacting real incomes, economic activity, and inflation,” the IEA warned in its report.
The diesel price shock is extending from transport through supply chains, analysts at Oxford Economics said earlier this month.
Some of the costs transferred to customers have started to emerge in the U.S. This year has seen a renewed surge in operating-cost pressures for U.S. trucking, driven overwhelmingly by diesel, while freight trucking producer prices have also begun to rise, Oxford Economics says.
“This suggests carriers are passing at least part of the fuel shock onto customers rather than absorbing it entirely through margins, shifting some of the burden toward the freight-intensive industries.”
U.S. inflation accelerated in September, with the consumer price index up by 3.7% from a year earlier and 0.6% compared to August, the last inflation numbers before the midterms showed on Wednesday.
“The index for gasoline rose 9.1 percent in September, accounting for over half of the monthly all-items increase. The energy index increased 5.2 percent over the month following a 2.1-percent increase in August,” the U.S. Bureau of Labor Statistics said.
By Tsvetana Paraskova
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FG Begins 17.7MW Oyo Mini-grid Construction

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The Federal Government has commenced five interconnected mini-grid projects with a combined capacity of 17.7 megawatts in Oyo State.
The projects, located in Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas, comprise the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega interconnected mini-grids, and is designed to improve electricity access in the communities.
The initiative is supported by a 17.74-megawatt battery energy storage system designed to support electricity supply and improve reliability.
Minister of Power, Joseph Tegbe, who made this known at the groundbreaking ceremony of the project, said the initiative would improve electricity access, support businesses and reduce dependence on generators in beneficiary communities.
Tegbe said the projects formed part of the Federal Government’s broader efforts to expand electricity access under President Bola Tinubu’s Renewed Hope Agenda.
 According to a statement issued last Thursday, the minister said the projects were expected to improve electricity supply to households and businesses, extend operating hours and create opportunities for investment and job creation.
“The Minister of Power, Joseph Tegbe, has announced the commencement of five interconnected mini-grid projects with a combined capacity of 17.7 megawatts in Oyo State, while dismissing reports of a planned increase in electricity tariffs.
“The initiative is expected to improve electricity supply to homes and businesses, reduce dependence on generators, extend working hours and create a more favourable environment for investment and job creation”, it stated.
The minister said the projects reflected the importance of collaboration among government agencies, private companies and development partners in addressing the country’s electricity challenges.
He acknowledged the contributions of the Rural Electrification Agency, Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company to the initiative.
Tegbe also commended the Oyo State Government, traditional rulers, community leaders and residents of the host communities for their cooperation, while specifically acknowledging the support of the Olubadan of Ibadan land, towards the realisation of the projects.
The minister said similar interventions supported by the REA had been implemented in communities across Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.
Addressing concerns about a possible increase in electricity tariffs, Tegbe dismissed reports suggesting that the Federal Government planned to raise rates, urging Nigerians to disregard the reports.
He said the government’s priority was to improve electricity supply and work towards achieving round-the-clock power, rather than announce a tariff increase.
Tegbe further identified three proposed energy corridors of the Lagos – Ogun, Abuja-Kaduna-Kano and the Benin-Enugu-Port Harcourt corridors, as part of the government’s plan to improve electricity availability.
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Oil & Energy

Petrol Price Cap Not Solution To Petroleum Market Challenges ……. MEMAN

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The Executive Secretary and Chief Executive Officer of the Major Energy Marketers Association of Nigeria (MEMAM), Clement Isong, says government arbitrary price caps are not solutions to the petroleum market challenges in Nigeria.
Isong stated that petroleum price capping comes with market distortions and lacks in competitiveness among operators.
Speaking at a virtual webinar organised by the Association in partnership with S&P global energy, Isong while speaking on one of the discussion points of the webinar, “Structuring Nigeria’s domestic distribution framework” said government arbitrary price caps are not solutions to the petroleum market challenges in Nigeria.
Isong noted that rather than it’s continued distortion of market prices, government should rather focus more on transparent, market driven pricing regime, efficient distribution and the adoption of measures that could help address supply bottlenecks and reduction of operating costs.
The MEMAN boss also advocated a well-structured market that would enable competition, improve supply security to support better outcomes for customers without necessarily relying on government imposed price controls or broad based fuel subsidies.
Isong in his presentation also outined other priorities for improving the efficiency and resilience of Nigeria’s domestic distribution market.
He insisted that supply coordination can be achieved only if government can prioritise domestic refinery output and using imports on the other hand to bridge supply gaps to manage disruptions.
Isong said bulk supply arrangements can also be achieved through the establishment of clearer terms of engagement to help drive product access, pricing, delivery schedules including contractual obligations amongst others.
Speaking on another discussion point of the webinar, “Developing a west african reference market”, S&P global energy acknowledged how geopolitical tensions from the middle east crisis including refining disruptions and changing global supply dynamics continues to impact on petroleum products pricing and the pressure foist on middle distillates, particularly diesel and aviation fuel.
The S&P global energy is calling for an urgent need for regional pricing benchmarks that better reflect West African market conditions noted that greater transparency, reliable market data and industry adoption will be essential to building a credible reference market.
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