Oil & Energy
Fuel Price: PH Residents Kick Against Proposed N408.5 Per Litre
A cross section of Port Harcourt residents has expressed disappointment over the the Nigerian Governors Forum’s (NGF) push for the full deregulation of the downstream petroleum sector that will leave petrol price at N408.5 per litre.
A civil servant, Mr. Uchenna Daniel, said the proposal was unthinkable given the state of the nation’s economy, especially when Nigerians were already struggling to buy petrol at N165 -N175/litre in the state.
Another respondent, a Miss Imam Awajis described the proposal as insensitive, saying if it becomes a reality, the poor masses would suffer more, because they pay for everything they consume,”.
An economic analyst, Mr Frank Eke, expressed dismay that Nigerian governors were not in tune with happenings in their states.
“They are not even aware of the level of insecurity in the country. They just woke up one morning and they are agitating for complete deregulation. This shows they don’t care about the lives of the common man.”
He continued, “the proposed price will set back the nation’s economy to a worse state than it already is.”
He advised the Federal Government to discountenance the governors’ proposal in the best interest of Nigerians.
Recall that at a virtual meeting last Wednesday, the committee chaired by Kaduna State governor, Nasir El-Rufai in a report, recommended a Premium Motor Spirit (PMS) otherwise called petrol price of between N380 per litre and N408.5 per litre while calling for the immediate removal of fuel subsidy.
El-Rufai had said the current subsidy regime was unsustainable, and only smugglers and illegal marketers benefit from it. He also said Nigeria could not fully benefit from the recent production cut by Petroleum Exporting Countries (OPEC), which was meant to keep fuel prices high, because of subsidies.
“Between N70 billion and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre, this is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist,” he said.
“The committee recommends PMS pump price increment from the current N162per litre to N408.5 per litre (negotiations with organized labour unions). N380 per litre (settlement with organised labour),” he said.
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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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