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Reduce Import Duty On LPG Equipment, Marketers Tell FG

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The Nigerian Association of Liquefied Petroleum Gas Marketers, has urged the Federal Government to reduce import duty on LPG equipment and accessories.
NALPGAM made the appeal while commending the government for the removal of Value Added Tax on locally produced LPG, also known as cooking gas.
The President of the association, Mr Nosa Ogieva-Okunbor, said: “The clamour for VAT removal from domestically produced Liquefied Petroleum Gas has been of perennial concern to members of our association.
“The good news received by our association and the LPG industry is that the Federal Government has finally signed the approval of VAT removal on LPG and gazetted same which makes it an official pronouncement.”
Ogieva-Okunbor, on behalf of the governing council and members of the association, thanked the Federal Government and all relevant government agencies for listening to their plea.
“We also want to use this opportunity to thank and appreciate the Department of Petroleum Resources for the timely directive stopping the inappropriate and indiscriminate installation of Skid plants in petrol stations,” he said.
According to him, the directive that all skid plants in filling stations be dismantled and removed was apt, considering the huge danger and risk to the public in the operations of LPG skid plants in filling stations.
Ogieva-Okunbor said: “We, however, appeal for proper and thorough implementation of the directive in all the states of the federation.
“The association still pleads with the government to create a more conducive and enabling environment for investors in the industry, particularly now that deepening the consumption of LPG in the country has become a major interest of the government and marketers are geared towards ensuring the success of the programme by complementing the efforts of the government.”
He said the increased awareness of LPG usage had seen consumption in Nigeria grow from 50,000 metric tonnes in 2007 to over 600,000MT in 2018 with more indigenous investments in LPG bottling plants.
“This thus will ensure that majority of Nigerians enjoy the convenience of the proximity of LPG refill or exchange points. We implore the federal and state governments to initiate a well-funded social welfare programme to expand usage of LPG,” Ogieva-Okunbor added.
The National Bureau of Statistics, in its LPG Price Watch for April, said the average price for the refilling of a 5kg cylinder for LPG decreased by 0.87 per cent month-on-month and 0.57 per cent year-on-year to N2, 046.53 in April from N2, 064.45 in March.

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Oil & Energy

Nigeria In Trouble As Oil Price Crashes Below $20

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Oil price fell below $20 a barrel yesterday, after the International Energy Agency (IEA) said demand would slump by a record this year despite a historic production cut deal.
Futures fell as much as 4.5% in New York to the lowest since 2002.
Oil demand will drop by over 9 million barrels a day this year, wiping out a decade of consumption growth, the IEA said, exhausting storage by mid-year.
While Saudi Arabia and other Gulf producers have pledged to cut supply starting next month, they have continued to flood the market in April.
Stockpiles are rising everywhere and weakening key physical market gauges. New York oil futures moved deeper into contango, signaling an expanding glut, while swap prices indicate North Sea cargoes are trading at bumper discounts.
Oil has lost about two-thirds of its value this year as countries extend their coronavirus lockdowns, death tolls mount around the world and unemployment explodes in America.
The International Monetary Fund (IMF) estimated the global economy will shrink 3% this year, a signal that energy demand may remain weak, while the IEA is warning that the worst may be yet to come.
“We may see further downward pressure on prices in coming days and weeks,” IEA Executive Director, Fatih Birol, said.
The IEA said consumption in April will fall by almost a third to the lowest level since 1995, and make this year the worst in the history of the oil market.
Despite OPEC+’s efforts to balance supply, global inventories will accumulate by 12 million barrels a day in the first half of the year and “overwhelm the logistics of the oil industry” in the coming weeks, it warned.
The massive OPEC+ deal to cut production starts next month. Until then the battle for market share persists with Abu Dhabi cutting its crude pricing for Asia. It follows a similar move by Saudi Arabia earlier in the week.

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NUPENG Lauds Members Over Petrol Supply Amid Lockdown

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The National Union of Petroleum and Natural Gas Workers (NUPENG), has commended its members on essential services for ensuring uninterrupted supply of petroleum products to every nooks and crannies of the country during the lockdown occasioned by the Coronavirus pandemic.
The union, however, decried the harassment and intimidation of oil company workers by security agents, calling on oil companies and the Department of Petroleum Resources (DPR) to provide adequate security passes for the workers.
NUPENG in a statement by its President and General Secretary, Prince Williams Akporeha and Olawale Afolabi, respectively, said petroleum tanker drivers, petrol station workers, petroleum products depot workers, oil and gas suppliers, and  liquefied petroleum gas retailers, had  made NUPENG and the  entire labour movement proud  as they moved through difficult and dangerous situations to ensure fuel supply to Nigerians.
The statement read in part: “The leadership of NUPENG has reviewed the roles of our members in the frontline in this critical period as Nigerians fight to contain the spread of the deadly and contagious coronavirus pandemic and we are proud to say our members on essential services have made us proud.
“In fact, not only have they made NUPENG and the United Labour Congress of Nigeria proud, our petroleum tanker drivers and others have made the entire labour movement proud by continuing to ensure uninterrupted supply of petroleum products to every nooks and crannies of the country despite the difficult and sometimes, dangerous situations as most states across the country are on lockdown.
“Once again, we appeal to state governments, security agents and Nigerians in general to cooperate with members of our unions who are risking their lives to provide essential services in the nation.”
NUPENG also appealed to corporate organisations to provide sanitisers and other safety kits to members of the union on essential services, to protect them and members of their families.
It stated: “We want to use the opportunity to call on oil companies and the DPR to provide adequate pass to our members on essential services to end the harassment and intimidation they are being subjected to by security agents across the country.”

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Oil & Energy

FG Releases N200bn To Improve Power Sector 

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Group Managing Director of Nigerian National Petroleum Cooperation (NNPC), Mr Mele Kyari, says the Federal Government has made payment of over N200 billion to the power sector towards improving electricity supply in the country.
Kyari disclosed this while speaking with newsmen in Abuja, yesterday, shortly after a closed door meeting between the NNPC team, Minister of Power, Mr Sale Mamman and Managing Director of Transmission Company of Nigeria (TCN), Mr Usman Mohammed.
“Actually the Federal Government has made payment of over N200 billion for power in the last 23 days and this will go a long way to ensure that issues around power supply are addressed.
“We will work as a team to ensure that all issues are settled”, he said.
Kyari said that the team was in the Ministry of Power to inform the minister that in the last one or two months and particularly during the COVID-19 period, NNPC has increased gas supply to the power sector.
According to him, there will be significant improvement in power generation in all Federal Government and associated power facilities.
“This also means that Nigerians will get better access to power during this lockdown period and going forward.
“There are issues around power supply process and we have discussed most of them and we are moving as a team to make sure that we resolve issues around payment and evacuation.
“We are very confident that this will get the desired result. We will visit some power plants tomorrow to make sure that we sort out any issue to ensure that Nigerians have access to better power,” he said.
He said that the minister was very clear on what was to be done to improve power supply.
“We will make sure this becomes transparent and obvious to all Nigerians,” he said.
On his part, TCN Managing Director, Mr Usman Mohammed said that the meeting was to ensure that there was constant supply of power as directed by President Muhammadu Buhari.
Mohammed said that the President has directed that there should be constant power supply to the people during the COVID-19 lockdown.
“This is why this meeting was conveyed by the Minister of Power to discuss supply of gas to the power plants.
“This is very important, before now, we have been discussing with NNPC, of course there is gas availability in the market but there are several power plants that don’t have gas and that is a big problem for us.
“With this meeting where the minister prevailed that NNPC should assist in suppling gas to the power plants, we believe that will have steady and sustainable power supply going forward especially during the COVID-19 lockdown, “ he said.

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