Oil & Energy
Blame Yourself, Not Marketers, For Fuel Price Hike, IPMAN Tells FG
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has berated the Federal Government for blaming marketers on the hike in the pump price of premium motor spirits, accusing the government of lying to the public.
Recall that Minister of State for Petroleum Resources, Chief Timipre Sylva, had said that any increase in the price of petrol has been at the instance of petroleum marketers, insisting the government has not removed fuel subsidy, and was unaware of filling stations selling PMS above N165.
Speaking at a stakeholders’ consultation forum on regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Sylva said the government was still paying subsidies on petrol, adding that marketers should be blamed for increase in fuel pump price.
Reacting on the development, marketers under the aegis of IPMAN said the Federal Government was not telling Nigerians the truth.
IPMAN Chairman in Rivers State, Dr Joseph Obele, said PPMC, a subsidiary of NNPC Ltd, was the sole importer of petroleum products into the country, and was only distributing to private depots and tankfarms with no plans for government depots.
Obele said marketers were currently buying one at N169 per litre at the depot, saying that marketers were retailing products strictly based on the buying rate from the government.
He warned the government against lying to the citizens but to fix the nation’s four refineries to operate at optimal capacity, saying that Nigerians would buy products at less than N100 per litre, if the refineries are working.
“The Minister is not telling Nigerians the truth. For instance, we have 19 tankfarms in Rivers State. Only three is selling for PPMC, which is government. The three tank farms doesn’t have right of importation.
“The sole importer of petroleum products in Nigeria is PPMC. PPMC imports and distribute to tank farms or private Depots across the states in Nigeria. They have refused to allocate any to Government owned depots, hence Government owned depots are without activities.
“The reason is because, they can’t adjust price at government owned depots. They will mandate private depots to sell for them claiming they are not aware of the increment by private depots. If they are sincere, they should send the vessels to government-owned depots and not private depots.
“Marketers are buying N169 per liter as at yesterday from the private tank farms, those depots are selling PPMC product which is government imported products.
“The recent increment on the price of PMS is government strategy to reduce the huge burden of imported landing cost of PMS which is far above the approved template by the government.
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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.
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