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PIB: FG Moves To Add Strategic Reserves’ Financing Cost To Fuel Price

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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.

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Group Urges Opposition Parties To Be Constructive In Criticism

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A group under the auspices of Coalition for the Protection of Democracy (COPDEM) has urged opposition parties in the country to be constructive in criticising governments at the state and national levels.
The National Chairman of COPDEM, Prince Rwang Pam, gave the advice Saturday at the National Convention and Democracy Icons Award organised by the group in Abuja.
Pam, who expressed concern that presently there was no strong political opposition in the country, said opposition was not about developing hatred for a government in power.
“As far as political parties are concerned, we are not hearing their voices. Nobody is actually saying anything.
“An opposition is not about hitting the government or being anti-Tinubu or anti-APC.
“When it is good, say it is good and when it is not good, say it is not good.
“I think that is what an opposition should be; without fear or favour,” he said.
According to him, COPDEM is an opposition, not to politics but to anything that is standing against the health and the well being of the masses.
Pam equally advised politicians, whether in power or not, to love Nigeria and be ready to do the right thing.
He said that the award night was organised to appreciate the champions of democracy.
“Tonight, we pay tribute to the champions of democracy, whose unwavering dedication has paved the way for positive change in our nation, from grassroots activists to visionary leaders.
“Each nominee and award recipient embodies the values of integrity, transparency, and inclusivity that are the cornerstone of a thriving democracy,” he said.
Our correspondent reports that recipients of the icons award include Late President Umaru Ya’Adua; former President Olusegun Obasanjo; Presidential Candidate of Labour Party, Peter Obi and Femi Falana, SAN.
Others include Bishop Mathew Kukah; Late Minister of Information, Prof. Dora Akunyili; the Yoruba leader, Pa Ayo Adebanjo; Late Dele Giwa; Late Gani Fawehinmi; Sen. Shehu Sani; Oby Ezekwesili, among others.
Speaking to newsmen shortly after the event, Peter Obi, who was represented by Chief Peter Ameh, National Secretary of Coalition of United Political Parties (CUPP), dedicated the award to the Nigerian people.

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Business Community, Others Happy With Completion Of Old Bori Road

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The business community, indigenes, workers, drivers, motorists and market women from across the Nigeria have expressed joy over the completion of the Aleto-Ogale-Ebubu-Eteo road (known as old Bori road) in Eleme local government area of Rivers State that will now serve as an alternative to the East/West road being constructed by the federal government.
The over 11km-road, constructed by the administration of Sir SiminalayiFubara and would be commissioned on Tuesday, reduces travelling time between Port Harcourt and the Ogoni, Ogu/Bolo, Andoni and Opobo/Nkoro axis of the state, and Akwa Ibom and Cross River States.
Recall that the East/West road owned by the federal government is presently undergoing reconstruction after being dilapidated for several years, thus causing serious traffic jams and loss of lives and property as recently witnessed in a sad fire incident.
But users of the road are now commending the Rivers State Government led by Governor Fubara for completing the alternative road and making life easy as they go about their daily activities within and outside the state.
A worker at the Federal Ocean Terminal (FOT) in Onne, Rivers State, Fidelia Okonkwo stated that since the road was completed, going to work everyday has now become more pleasurable and less damaging to her car.
Okonkwo stressed that “The terrible nature of the East/West road really gave us nightmare and one can now imagine the difference this new road has made. I find it so easy to drive to work now, at a time; I parked my car at home and join public transport to work. I must say kudos to the Rivers State government.”
A driver that plies the Port Harcourt-Ikot Abasi route, IdongesitOkon expressed joy over the alternative route, saying he now spends less hours carrying passengers between Rivers and Akwa States, in addition to spending less fixing his car due to the bad state of the road.
He praised the Rivers State Government for delivering on the road, pointing out that when the governor awarded the contract, they thought it was the usual politician way of doing things but that they were shocked when contractors finished the project.
According to him, “Help us thank the governor, God go bless am, we no believe am when he say him go finish the road but now see as the road dey smooth, we dey enjoy am well well.”
An indigene of Aleto-Eleme, Obarilomate Godwin expressed gratitude to the government, stating that the completion of the road would save the community from perennial flooding, in addition to improved movement along the road.
“I am really happy for this road project, before now, during raining season, the road would become flooded and it will be difficult to move around. But now, we are happy that there won’t be flooding and we can easily move from one point to the other.
“I must admit that Governor Fubara is working hard despite the political distractions in the state; we can only ask that he does more for the people of Eleme, we know that the ring road is coming and the contactor is on site, this is really good, we thank him,” he added.
Mrs Agnes Ogwutum, who sells at the Eleme market, while expressing happiness over the road, saying it enables them to move their goods quickly, called on the state government to quickly finish the ongoing ring road project, saying it will help increase the number of people coming to the market.

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Nigeria, China Sign MoU On Economic Growth

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The Nigeria Customs Service has signed a Memorandum of Understanding with the General Administration of Customs, People’s Republic of China, to foster bilateral relationships and enhance economic growth.
This was contained in a statement, yesterday, by the National Public Relations Officer, NCS, Abdullahi Maiwada.
According to the statement, the Comptroller-General of the NCS, Adewale Adeniyi, signed the MoU when he led a management team of the service to Shenzhen metropolis of China.
Speaking during the visit, Adeniyi appreciated the Vice Minister of the Chinese General Administration of Customs, Wang Lingjun, for showing interest in signing the agreement.
Adeniyi explained that the new MoU with China “would boost the countries’ import-export operations and favour the Micro, Small and Medium Enterprises in Nigeria,”
“We know a lot of Nigerian companies and Small and Medium Enterprises take advantage of the opportunities aided through e-commerce,” Adeniyi added.
He expressed optimism that the agreement would serve as a critical component of cooperative security and trade relationship between the two countries.
The relationship would create a cooperative mechanism for NCS and the GACC to collaborate on supply chain security standards and enhance the economic stability of both nations, he said.
According to him, these are some of the many reasons the NCS pays attention to what is happening in China.
“As you have said, China is making the biggest trade in Nigeria, and the basic context of international trade is ‘your export, our import’. I appreciate the numbers that you gain in Nigeria. But it is also common knowledge that those numbers sometimes must take account of the large volume of informal trade that exists between us,” the CGC said.
Earlier, Lingjun, who was represented by Sun Yuning, while signing the MoU, expressed satisfaction with Adeniyi’s vision.
Lingjun added that the affiliation between the two government agencies “would serve as a mechanism for creating opportunities that Nigeria and China share on a wide range of economic issues and trade facilitation.”

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