Oil & Energy
Petroleum Marketers Fault FG On Fuel Subsidy Expenses
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has faulted the Federal Government on the claims that it was paying subsidy on 65 million litres of PMS consumed in the country daily.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, had announced that the government was spending N283 per litre of PMS or N18.397billion per day as subsidy, for 65million litres of fuel consumed in the country daily.
While appearing at the House of Representatives’ Ad hoc Committee to Investigate the Petroleum Products Subsidy Regime from 2013 to 2022, Ahmed said landing cost of PMS was N448.20k.
Projecting for the full year, from January to December, subsidy will be N6.715trillion, and 3.375trillion for a half year.
Reacting, IPMAN said though the landing cost of PMS was about N450 per litre, the figure given by the government as the daily quantity consumed by Nigerians, was untrue.
Executive Chairman of IPMAN, Rivers State, Dr Joseph Obele, said it was regrettable that no one actually knews the country’s daily fuel consumption, as both NNPC and the defunct DPR always gave conflicting figureds.
Obele, who is also the AAC Governorship candidate in Rivers State, explained that it was impossible for the country to consume up to 65million litres per day, describing it outrageous quantity.
He challenged the minister over what he described as incorrect amount arising from the quantity adopted, saying that the country might be feeding the cabals or subsidising for the neighbouring countries arising from the porous borders.
“There is no doubt that landing cost of PMS is about N450 per liter. There is no doubt that Federal Government pays about N280 per liter as subsidy since our selling rate as stipulated by Federal Government is N165 per liter.
“There is no doubt that we are importing all the refined Petroleum products we consume in our country since our refineries are not functional.
“The doubt is the daily quantity consumed by Nigerians.
“NNPC reported that Nigeria’s daily consumption of Premium Motor Spirit, also known as petrol, has risen from 72.07 million litres a day in December 2021 to 74 million litres per day as at the week ended April 3, 2022.
“According to DPR, prior to the administration of President Muhammadu Buhari, Nigeria’s fuel consumption figure had been put at between 30 million and 35 million litres.
“It later rose to 60 million litres per day, 55 million litres, while until today, no one actually knows the country’s daily fuel consumption.
“The racket is in the daily consumption. Our lifting Analysis by our knowledge is not such outrageous quantity. We might be feeding the cabals or subsidising for our neighbouring countries arising from our porous borders.
“Our position, we challenge the Minister that such amount is not correct arising from the quantity adopted.
“Secondly, they should continue paying the subsidy until they fix our four National refineries so that Nigerians shall end subsidy payment regime and importation of refined Petroleum products. By that Nigerians will buy fuel less than N100 per litre.”
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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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