Oil & Energy
CSOs Push For Full Deregulation As Petrol Queues Emerge In Abuja
Civil society groups on Saturday pushed for complete deregulation of the downstream sector of the petroleum industry that allows markets forces to determine the pump price of petrol and other petroleum products in the country.
Their call came on the same day queues began to emerge at several petrol stations across the Federal Capital Territory, FCT, Abuja ahead of the expected pump price hike by the Federal Government.
The groups, under the aegis of the Coalition of Nigerian Civil Society Organizations for Petroleum and Energy Security, said for Nigeria to derive full benefits from its hydrocarbon reserves, the downstream sector needs to be urgently deregulated.
Speaking to journalists, the Convener of the group, Timothy Ademola, said full deregulation would lead to liberalization which would, in turn, attract investments into the sector.
Ademola, however, urged the government to put in place measures to cushion the impact on the masses by giving it “a human face”.
He explained: “The deregulation of petroleum downstream is supposed to bring about some sort of liberalization of the sector which would make it possible for all petroleum products marketers to source their products from anywhere and sell at any price dictated by prevailing market forces.
“The competition arising from that would have helped to force pump prices down for the benefit of the citizens. But the scarcity of foreign exchange has made it difficult for the marketers to import products, thereby making NNPC the sole importer in keeping with its statutory role as a marketer of last resort”.
He noted that since there is no provision in the 2021 budget for a subsidy, allowing NNPC to continue to bear the cost of subsidy would mean a return to fuel scarcity and queues across the country.
“If this happens, organized labour that is presently resisting deregulation would be forced to castigate NNPC for not supplying enough fuel to guarantee zero fuel queues and for not making a profit at the end of its financial year.
“Truly, the situation calls for a new and bold approach. We suggest that Labour should not just constitute downright opposition to Deregulation but partner with the Government on how to best achieve patriotic, people-centred Deregulation; leveraging the new Government policy for the soon resumption of Nigerian Refineries, the approval of Modular Refineries and the welcome development of Dangote Mega Refinery.
“It will do our nation much good if our respected labour leaders spearheading the resistance to deregulation would recognize that deregulation has largely stabilized petroleum products supply over this past year. Once the foreign exchange issue that has made it difficult for major and independent marketers to engage in the importation of petroleum products is resolved, the other gains of deregulation will kick in and Nigerians will be better for it”.
Ademola added that “the market stabilization that has been brought about by the past one year of deregulation is a strong assurance that full deregulation is the way to go if Nigerians are to enjoy the full benefits of their hydrocarbon wealth. Resisting deregulation may only slow down our national progress in this regard”.
Meanwhile, across Abuja metropolis and suburbs, queues emerged at filling stations as motorists and consumers stock up ahead of the expected petrol price increase following rising in crude oil price at the international market.
Oil & Energy
‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’
Oil & Energy
The Race To Cut Methane Emissions Is Exposing A Global Divide
By Felicity Bradstock for Oilprice.com 16
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.
-
Politics4 days agoLG CITY BOY COORDINATOR HAILS WIKE’S SUPPORT FOR ONYESOH, TINUBU
-
Politics4 days ago
DIRI INAUGURATES APC CAMPAIGN COUNCIL, SETS MILLION VOTES TARGET FOR TINUBU
-
Politics4 days agoNDC Candidate Urges Oborevwori To Probe Asaba Political Violence
-
News4 days agoArmy Recovers X Account After Hack Attempt
-
Business9 hours ago
‘NUJ, NPA’s Partnership Would Boost Port Producrivity, Economic Growth’
-
Politics4 days ago
2027: Oborevwori Tasks Media On Fair, Accurate Reporting
-
Politics4 days ago
2027: AKPABIO ENVISAGES TINUBU’S VICTORY IN SOUTH SOUTH REGION
-
Business4 days agoNigeria Loses N17tr Yearly To Abandoned Projects
