Connect with us

Oil & Energy

PH Residents React To Petrol Price Preduction

Published

on

Since last week when
the Federal Government announced a reduction of N10 from the official price of the petrol pump price, in response to the fall in crude oil price at the global market, divergent views have continued to trail the action of the government.
Our correspondent who spoke with some of the residents reports that while some commend the reduction, others see it as a new campaign strategy of President Goodluck Jonathan to secure popularity and victory in next month’s general election, yet others feel reducing the pump price from N97 to N87 per litre was insignificant and not commensurate with the more than 50% fall of crude oil price in world market.
An economist and social analyst, Mr Jefat Edum, is of the view that the N10.00 reduction is quite insignificant compared to the big fall of crude oil price that is drastically devastating  economies of oil-producing nations in the world.
“You can see the cries and woes of most companies in the sector and huge negative impact on the economies of oil-producing nations. One had expected that any slash in the petrol price should be significant to at least the point that it would reduce the cost of transport fares paid by Nigerians,” he said.
Edum is worried that with over 50 per cent drop in crude oil price, at least N35.00 should be reduced, so that one litre can go for at most N52.00 and this would further enable transporters meaningfully reduce the fares charged Nigerians.
You can see the effect of the reduction is not felt at all because it has not reflected on the prices of fare as much as the crude oil price fall is impacting on oil-producing nations.
He urged the Federal Government to revisit the reduction and slash more so that a litre of petrol can sell for N55 or N62 for the interest of Nigerians.
Another respondent, Dr. Donald Alozie picked holes with the way and manner government arrived at the N10 reduction.
Alozie disagreed with the sidelining of other stakeholders in the reduction. “Imagine the Trade Union Congress and oil marketers opposing the reduction. That means that these two important stakeholders were not properly consulted and their inputs were not in such a crucial decision which impacts heavily on Nigerians.
He described the government’s decision and approach as undemocratic and should therefore be reviewed so that a more acceptable level of reduction is achieved.
“Government cannot just wake up one morning and make such decision without proper consultations with other stakeholders in the sector.”
He criticized the refusal of some petroleum marketers in Nigeria to revert to the new pump price.
But Tunde John, a Port Harcourt-based businessman said the reduction is in order. “It is a show of magnanimity of the government to announce price reduction of petrol pump price promptly without allowing a build up of sentiments that could have resulted in mass actions.”
John lauded the Federal Government’s action but cautioned that, “the N10 reduction should not be seen to be the last action. The trend should be studied and further actions which may require more readjustments be made.”
Also speaking in a similar tune, a taxi driver, Macleans Anderson said, “the reduction is a proof of government’s sensitivity to the plights of the people.
According to him, “all we have been hearing for the past decades is increase in petrol price but it is a thing of joy that the President Jonathan-led Federal Government broke the jinx by reducing the burden on Nigerian masses. I commend the government for doing that.”
Anderson views the refusal of petrol marketers in other parts of Nigeria as sabortage and urged the Directorate of Petroleum Resources (DPR) to take more drastic actions against defaulters.
“The marketers cannot be bigger than the Federal Government. Slash in petrol price was taken in the interest of Nigerian masses and any attempt by marketers to reject the order should be viewed as a move against the people and government and must be resisted,” he maintained.
But a political colouration was given to the order by Chief Mathias Njoku. “If you look at the timing, you will see that because the president is desperate now to return for a second term, he has decided to make the reduction few weeks to the election time.
“Yes, we know that oil price has fallen in the global market but this has been on since last year, why did it take the Federal Government this long to take such decision,” he querried.
Nkoku said the aim of Federal Government is to win the sympathy of some gullible Nigerians whose votes he desperately needs to return himself and his party to power.
However, to Etim Clement, a trader, “government has done well. Let the taxi and bus drivers also reduce their fares. Petrol now costs less, and what it means is that the transporters should equally reduce their charges otherwise the reduction is meaningless.”
Clement also wants reduction in other products such as kerosene, and gas since they are products of crude oil. “As the price of crude oil drops, not only petrol price should drop, let others as kerosene and gas also reduce.”
He particularly appealed to marketers in Aba, Calabar and other cities that have refused to readjust to be selling at the new pump price.
Clement advised the government to take steps that could improve the agricultural sector so that sector so that most Nigerians who lost their jobs in the oil companies as a result of the fall in crude oil price as well as other unemployed youths can be engaged in meaningful economic activities.
He regretted that Nigerian’s past leaders failed to plough back oil money to agriculture and other sectors for the economic development of the nation instead of concentrating on oil for national earnings.
“Inability to properly diversify our economy has remained our major problem in the country. Those involved in agriculture should be encouraged. Apart from providing employment and creating wealth, it would boost our foreign exchange base,” he noted.
The Petroleum Products Pricing Regulatory Agency (PPPRA), in defending the new pump price of petrol said it considered the fundamental trends in global crude oil market before arriving at the N10 reduction.
Executive Secretary of the agency, Mr Ahmed Farouk, who disclosed this in Abuja said even with the N87.00 per litre, the government was still subsidizing it with N2.50 per litre.
He explained that in determining the new price, government considered the economic implications on an average Nigerian.

 

Chris Oluoh

President Goodluck Jonathan

President Goodluck Jonathan

Continue Reading

Oil & Energy

Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

Published

on

Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended

Continue Reading

Oil & Energy

Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

Published

on

Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.

Continue Reading

Oil & Energy

Administrator Assures Community Of Improved Power Supply

Published

on

The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.

By: King Onunwor

Continue Reading

Trending