Oil & Energy
Fuel Crisis: Oil, Gas Suppliers Seek Forex Interventions, Tax Reviews
The Natural Oil and Gas Suppliers’ Association of Nigeria (NOGASA) has called for foreign exchange interventions and review of tax policies, among others, to cushion the crippling effect of high cost of diesel on its members’ businesses.
National President of NOGASA, Benneth Korie, while reading a communique released at the organisation’s 2nd annual National Executive Council (NEC) and stakeholders meeting in Abuja, said the association has resolved to visit President Muhammadu Buhari to seek his intervention in the growing crisis in the petroleum industry, which has resulted in acute scarcity of Petroleum Motor Spirit (PMS) otherwise known as petrol.
Recall that the association had earlier raised alarm that 75 per cent of filling stations and businesses were on the verge of shutting down as diesel, which powers their operations, now sells for N850 a litre and has eroded any profit they could make.
He called on the Central Bank of Nigeria (CBN) to allow their members access foreign exchange for the importation of diesel at the official rate rather than buying from the black market, thereby increasing the cost at which it is sold.
He stated other interventions required to save the downstream subsector of the nation’s oil and gas industry from total collapse as enumerated by the association.
“NEC/Delegate and stakeholders resolved as follows: That the association should pay a courtesy visit to the president of the Federal Republic of Nigeria to outline some of the issues below and the way forward.
“Association urge the national assembly to review the policy of taxation (i.e. VAT) as & affects petroleum product supply and distribution chain.
“The association urge the national assembly relevant sectors to enact a bill for the establishment of energy bank for easy transaction in petroleum products and other and gas sector.
“That Federal Government of Nigeria should fix the four(4) refineries in Nigeria in a view to reducing the dependency on importation of refining the product, to ease the high cost of petroleum product Nigeria
“That the association through its business arm should be given all necessary assistance by CBN to import AGO and other products into the country at a competitive price.
“The association appeal to FIRS to ensure that suppliers are given a tax relief to avert multiple taxation and refund where necessary. The association appealed to FIRS to use their discretion to apply for relief on petroleum products.
“That the association urge NMDPRA to use NOGASA as the umbrella body oll and gas association in Nigeria. Thereby using the association to collaborate in licensing petroleum products in Nigeria
“Government should encourage the establishment of modular and private refineries such as Dangote, Waltersmith,” 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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