Oil & Energy
PMS Landing Cost Hits N470/Litre
The landing cost of Premium Motor Spirits, popularly known as fuel, has risen to N470 per litre, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said.
IPMAN’s Chairman in Rivers State, Dr Joseph Obele, said the government was currently paying subsidy of at least N305 per litre of fuel consumed in the country.
Obele explained that the rising cost of the landing cost of PMS was as a result of the ongoing Russia-Ukraine conflict, which was also affecting the price of crude oil in the international market.
He expressed regret that Nigerians would not have been affected if the nation’s four refineries were functioning optimally, as fuel would have been sold at less than N80 per litre, if the refineries were working.
“As at last week, the landing cost of PMS was N470 per litre and government setting a template of N165 per litre only means that the government will be paying subsidy of over N305 per litre.
“Recall that early this year in January, the budget for subsidy was put at N3trillion and a supplementary budget was passed around March 2022 for N6trillion, and landing cost of PMS at the time was about N280 per litre.
“So, the landing cost of PMS arising from the Ukraine and Russia conflict has made fuel to land at about N470 as at last week.
“So, government proposing to pay more for subsidy will amount to about N10trillion, just this year alone and that is too much.
“That’s why the Minister of State for Petroleum Resources (Timipre Sylva) has said the government will not intervene anymore”, he said.
The IPMAN boss in also said the commercialization of NNPC from the government venture that it used to be, was simply a wrong timing.
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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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