Oil & Energy
IPMAN Gives Recipe To Products Scarcity
An aggressive policy that gives the building of new refineries a priority in the petroleum sector reform agenda is the one way of the quagmire which products scarcity has plunged this country into over the last couple of years.
Consequently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that if the problem of products scarcity is to be addressed frontally, then the Federal Government needs to repair existing refineries and build new ones while at the same time encouraging private investors to build more refineries.
Rivers State Chairman of IPMAN, Chief Samuel Osaroejor, who said this while fielding questions exclusively from The Tide in his office, last week, also stressed that for the private investors to breakeven in the business, licenses given to some few Nigerians to import petroleum products should be withdrawn.
Osaroejor remarked that the refineries in the country were functioning far below installed capacity because all equipment used during their construction, and or some installed during the infrequent turn around maintenance (TAM) of the plants were obsolete.
On the availability of kerosene in the state, the IPMAN chairman restated the readiness of his members to make the product available at the official pump price of N50 per litre, saying that corruption was the major problem causing not just scarcity but high cost of the product in the state.
He decried a situation where even IPMAN executive members would not have kerosene in their filling stations, stressing that “there is no way I will have kerosene and will not sell at N50 per litre”, official pump price.
In another development, IPMAN’s Western Zone Chairman, Comrade Olumide Ogunmade has reiterated the association’s readiness to partner with the Nigerian National Petroleum Corporation (NNPC) in making products available to Nigerians, if NNPC exhibits some level of sincerity in products distribution.
But Ogunmade attributed the inability of the oil-rich nation to make products available and affordable to Nigerians, 50 years after Independence, to undue bottlenecks created by the Pipelines Products Marketing Company (PPMC), a subsidiary of the NNPC which supplies and distributes petroleum products.
He reiterated that for government to get its ark right, it must make products available to independent marketers, who are closer to the people first, saying that the priority given to major marketers was not in the economic and security interest of the nation.
Ogunmade also alleged that PPMC does not accept drafts from independent marketers before they are allocated products while the major marketers’ drafts are honoured expressly, saying that it was unfair for the NNPC arm to discriminate against indigenous products marketing companies in the business of supplies and distribution of products.
The IPMAN boss challenged the PPMC to give equal opportunities to all marketers irrespective of their capital base and ownership structure, saying that the independent marketers were financially sound and had good reputation and integrity to run transparent and profitable businesses.
Vivian-Peace Nwinaene
The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.
The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.
The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.
By: Lady Godknows Ogbulu
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