Oil & Energy
Fuel Queues May Persist Until We Fully Deregulate – Minister
The Federal Government
has said Nigerians, especially residents of the Federal Capital Territory (FCT) and some other cities, may continue to witness fuel queues until there was complete deregulation of petrol.
Minister of State for Petroleum Resources, Timipre Sylva, stated this while briefing State House correspondents at the end of the weekly Federal Executive Council, FEC, meeting, weekend, presided over by President Muhammadu Buhari at the Council Chamber, Presidential Villa, Abuja.
The Minister also said the council approved the award and procurement for provision of a conference hostel facility in Yenagoa, adjacent to the Nigerian Content Towers at N22 billion to Megastar Technical Construction Company, with completion period of 24 months.
Responding to questions on the persistent fuel queues in Abuja and some other parts of the country, the Minister said the situation, particularly in the FCT, would persist for a while until fuel was finally deregulated.
He explained that the fuel queues were not caused by shortages in supply of fuel but for the reluctance of petroleum marketers to sell at the recommended retail price.
According to him, there are queues in Abuja because selling at the recommended N165/litre of fuel is unprofitable to marketers, who resolved to take advantage by diverting products from the city centre to where they could sell above the recommended retail price.
“If you look at it, there are no queues when you leave Abuja. In most places, it is only in Abuja metropolis you continue to have these queues. So, it is as though there is less supply to Abuja than to the rest of the country.
“It is not so. It is because if you go out of Abuja, they can afford to probably sell at higher prices. And I’m sure a lot of you must be buying at higher prices”, the Minister said.
Giving updates on the rehabilitation of the nation’s refineries, Sylva said the Port-Harcourt refinery would soon become operational, adding that the Dangote Refinery would commence operation by January next year.
“So, these issues will gradually be resolved and we will get to the point where Nigeria will be fully supplied from in-country refined products,” he assured.
On why Kaduna and Warri Refineries’ workers were still drawing salaries, even when they were not producing anything, the Minister explained that most of the workers had been redeployed, with a few others doing skeletal services to prevent pilfering at the facilities.
Commenting on the high cost of gas (diesel), the Minister said it was so because the product had been deregulated.
“But, of course, you know the geopolitical tensions in Ukraine and Russia is still on and it’s really affecting the global prices of this commodity.
‘’So, it is not really something from Nigeria. It is something that is affecting the global community; everywhere in the world is having the same problem.
“If you go to the UK, they are still talking about inflation; if you go to America, they’re talking about inflation, because there are issues and it’s all coming from the geopolitical tensions in Ukraine and Russia”, he said.
On his part, Minister of Environment, Muhammed Abdullahi, said Council awarded the contract for consultancy services and design of centre of excellence for environmental restoration with an Integrated Contaminated Soil Management Centre at the sum of N449,250,040.50 (VAT inclusive).
He explained that the centre was in fulfillment of the President’s promise to Ogoni people and was meant to impact on them in terms of employment generation and laboratory tests for land remediation efforts on the site contaminated, so it could be made easily cultivatable by the people for their fisheries, farming activities and access to water.
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Oil & Energy
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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