Oil & Energy
Marketers Fear Fuel Price May Hit N170 Per Litre
Petroleum product marketers in the country, under the umbrella of the Independent Petroleum Marketers Association of Nigeria, IPMAN, and the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, have warned that the retail price of petrol may hit N170 per litre.
This is an increase in the current N162-N165 per litre price of the product.
The marketers said the anticipated increased in the pump price of the Premium Motor Spirit, PMS, popularly known as petrol, is as a result of the rising cost of the product at the depots.
According to them, the depot price is projected to increase from N159/litre to N165/litre, if not brought under control.
The National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, who spoke on the possible increase in the pump price of petrol, said this was bound to happen unless the increase in depot price is addressed.
The marketers’ warning is coming amid emerging queues at fuel stations in Abuja and some parts of the country due to scarcity of the product.
The marketers claim supply drop, but, the Nigerian National Petroleum Corporation, NNPC, says there is enough petrol to last the country through the Yuletide and beyond.
NNPC said it has over 1.7 billion litres of petrol in stock and more products are expected to arrive Nigeria daily over the coming weeks and months.
However, the IPMAN spokesman said: “I want you to know that the availability of petrol is a problem. Most tank farms don’t have products, and the place to go and buy products is from the few ones that have.
Creating a scenario of how the anticipated price hike will come about, Chinedu stated that as a result of the unavailability of the product at most tank farms and marketers buying from the few ones that have the product, profiteering will set in and they (marketers) will be selling at N159 to N160 per litre
He added: “You (marketers) will now consider moving the product to your filling stations, particularly for marketers who don’t get bridging claims.
“This marketer will pay close to N100,000 to be able to send the product to his station. Now, when the product gets to his station, that product’s cost is almost at N163/litre. So, will he use only N2 margin to sell petrol, knowing that he will pay staff, power bill, taxes, etc?”
Chinedu stated: “Marketers should not be held responsible when the pump price increases. Many tank farms don’t have products. So marketers don’t have any option because if they buy, they sell.
“If there is surplus, you will see marketers selling at N162/litre or below, but right now, you hardly find anyone selling at that price. I also want to let you know that by next week, products will be close to N165/litre at depots.”
President PETROAN, Billy Gillis-Harry, confirmed the position of IPMAN, noting that retailers of petrol at filling stations would adjust their prices upwards beyond the N165/litre if depots continued to sell at unapproved rates.
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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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