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PIB: FG Moves To Add Strategic Reserves’ Financing Cost To Fuel Price
The Federal Government is proposing the addition of the costs of managing the national strategic stocks of petroleum products to the retail price of the commodities.
The proposal, which is included in the 2020 Petroleum Industry Bill (PIB), currently before the National Assembly, might lead to a hike in the pump price of Premium Motor Spirit (PMS), also known as petrol, as well as kerosene and diesel, going forward.
This means that on the passage and signing into law of the PIB, the price of petrol might rise, other things being equal, as the cost of managing the national strategic fuel stocks would, from then, form an integral component of the pricing template of petroleum products pricing and would determine the pump price of the commodities.
Current components of the pricing template, apart from the landing cost, was the National Transportation Average, NTA; NPA charges, marketers margin and transportation costs.
The Federal Government had, few years back, proposed the inclusion of a certain amount of money as road maintenance charges and fuel tax in the retail price of petrol, but had to suspend the plan, because of resistance from Nigerians.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, which is the body that would emerge from the scrapping of the Petroleum Products Pricing Regulatory Agency (PPPRA), and the Petroleum Equalisation Fund (PEF), is to be saddled with the responsibility of setting up and managing the national strategic stocks of petroleum products.
The PIB is proposing that that the Nigerian Midstream and Downstream Petroleum Regulatory Authority would determine the amount to be charged as levy for financing the strategic petroleum products’ reserves, which would form part of the retail price of each of the petroleum products.
It is also mandating the Nigerian Midstream and Downstream Petroleum Regulatory Authority to work with security agencies in deciding areas of the country where the national strategic stocks would be maintained and distributed.
The PIB stated that: “The Authority shall: establish, administer and ensure the storage and distribution of the national strategic stocks of petroleum products in accordance with regulations issued by the Authority;
“Determine and publish the amount to be charged as a levy for the financing of the national strategic stock, which shall form part of the retail price of each petroleum product, such levy to be determined as a percentage of the retail price and be deducted on wholesale basis.
“Designate, in consultation with the appropriate authorities and national security agencies, the strategic locations across the country where the national strategic stocks shall be distributed and maintained.”
The PIB is also proposing that facilities and infrastructure which are to be specifically defined by the soon-to-be-established Nigerian Midstream and Downstream Petroleum Regulatory Authority for the storage of national strategic stocks would be exempted from the provisions of the law relating to open access.
In addition to managing the national strategic stocks of petroleum products, the PIB is saddling the Nigerian Midstream and Downstream Petroleum Regulatory Authority with other functions, including regulating and monitoring technical and commercial midstream and downstream petroleum operations in Nigeria.
The authority is also to regulate commercial midstream and downstream petroleum operations, including: petroleum liquids operations, domestic natural gas operations, and export natural gas operations.
It is also to determine appropriate tariff methodology for processing of natural gas, transportation and transmission of natural gas, transportation of crude oil, and bulk storage of crude oil and natural gas.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority would set cost benchmarks for midstream and downstream petroleum operations; provide pricing and tariff frameworks for natural gas in midstream and downstream gas operations and petroleum products based on the fair market value of the applicable petroleum products.
It would also be its duties to advise the government, government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks; and develop open access rules applicable to petroleum liquids and natural gas transportation pipelines, terminal facilities and bulk storage facilities.
President Bola Tinubu, yesterday, congratulated Governor ChukwumaSoludo on his re-election, calling the result “an affirmation of visionary leadership” and promising closer federal–state collaboration with Anambra.
The Independent National Electoral Commission declared Soludo the winner of Saturday’s off-cycle poll after he swept all 21 Local Government areas.
In a statement he signed and released yesterday, Tinubu praised voters, security agencies and INEC for a peaceful exercise and urged the governor to be “magnanimous in victory.”
He also commended the new INEC chairman, Prof. JoashAmupitan and charged the commission to sustain higher standards in future polls.
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He wrote, “I must also congratulate the people of Anambra State, the security agencies and the Independent National Electoral Commission on the peaceful and successful conduct of the governorship election.
“Professor Soludo’s re-election is a testament to his visionary leadership and the significant progress the state has made under his guidance.
“Governor Soludo, the Solution, has demonstrated that indeed knowledge is power and that academic principles can be applied in serving the people, undergirding accountability, transparency and prudent management of people and resources.”
Tinubu reminisced on his visit to Anambra State in May, where he inaugurated some projects executed by the Soludo administration.
During the visit, he highlighted the good thinking behind the landmark projects being embarked upon by the governor, whom he called “Mr Solution.”
“That experience is indeed remarkable and will remain indelible in my mind,” he stated.
The President commended Soludo for bringing discipline, grace, brilliance, and a fresh perspective to governance in Anambra, saying, “Under him, Anambra is living up to its motto as the Light of the Nation.”
Assuring Soludo of his support, the President urged the former Central Bank Chief to be magnanimous in victory and to seek the cooperation of his opponents in the just-concluded elections.
He stated, “I assure Governor Soludo of my unwavering support, and I look forward to continued collaboration between Anambra and the Federal Government.
“The victory of the opposition All Grand Progressives Alliance in the election again demonstrates the vitality of our political system and the fact that victory for any progressive and hardworking leader can hardly be encumbered or denied.
Tinubu also thanked the new INEC Chairman, Amupitan, and his team for conducting what, according to him, observers have described as a credible election, “based on the reports I have received thus far.”
“I charge the commission with maintaining the standards and further improving its performance, so we can continue to strengthen and deepen our electoral system,” said Tinubu.
Soludo’s victory extends APGA’s two-decade dominance of Anambra politics and makes him the third governor in the state’s history-after Peter Obi and Willie Obiano-to win a second term.
Tinubu said he looks forward to “continued collaboration between Anambra and the Federal Government,” adding that Soludo has brought “discipline, grace and a fresh perspective” to governance in the state.
Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.
The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.
Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.
“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.
“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”
The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.
Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.
“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.
Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.
Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.
Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.
The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.
The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.
The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”
“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.
He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.
Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.
“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.
Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.
“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.
