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NNPC increases petrol depot price, marketers to sell at N165-N173 per litre

A recent adjustment of the ex-depot price of petrol is set to brew a fresh increase in the pump price of the product.

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IPMAN, PPPRA, NNPC, Reduce funding oil subsidy - IMF to Nigeria , Oil marketers, PENGASSAN call for subsidy removal 

A fresh increase in the retail pump price of Premium Motor Spirit (PMS), otherwise known as petrol appears to be looming as the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased the ex-depot price of the product, to N155.17 per litre from N147.67 per litre.

According to a report by Channels Television, this new adjustment is contained in an internal memo from PPMC with reference number PPMC/C/MK/003, dated November 11, 2020, signed by PPMC’s Manager Marketing, Tijjani Ali and addressed to the Executive Director, Commercial of the agency.

READ: Africa: South African unemployment rises to 17-year high of 30.8%

The ex-depot price is the price at which the product is sold by the PPMC to marketers at their various depots.

Consequently, marketers would be dispensing the product to motorists within a band of N165 and N173 per litre.

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The memo read in part, “The EDC may please refer to the management directives in respect of the above subject (PPMC PMS prices for November 2020) as per the attached memo.

READ: FG increases fuel pump price to N138.62 per litre

“In line with the above, we propose PPMC November 2020 actual prices for PMS with effect from 13th November 2020, as follows: PPMC Ex-Coastal Price for PMS N130 per litre; PPMC Ex-Depot Price (With collection) N155.17 per litre.”

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In its petrol price proposal for November, the PPMC put the landing cost of petrol at N128.89 per litre, up from N119.77 per litre in September/October. It also disclosed that the estimated minimum pump price of the product would increase to N161.36 per litre from N153.86 per litre.

READ: 2020 Q2 Analysis: Conoil Plc, hanging by the thread

It can be recalled that in September, the Federal Government declared full deregulation of the downstream oil sector, paving the way for prices to be determined by market forces, especially international crude oil price. This led to the adjustment of the pump price of petrol to between N158 and N162 per litre to reflect the increase in global oil prices.

The retail price of petrol had also risen from N121.50-N123.50 per litre in June to N140.80-N143.80 per litre in July and then N148-N150 per litre in August.

READ: Crypto hedge fund, Polychain capital buys $8.2 million worth of yearn.finance

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The deregulation policy of the Federal Government had been singled out as the reason behind the recent hike in the price of petrol.

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According to the Minister of State for Petroleum Resources, Timipre Sylva, deregulation will be difficult for Nigerians at the initial stage but will get better in the long run.

He added that since the announcement of full deregulation in March, the Federal Government has saved over N1 trillion.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Energy

FG delivers 100 KWP Solar Mini-Grid to serve off-grid community in Ogun State

The REA has delivered 100kWp Solar Hybrid Mini-Grid designed to adequately serve off-grid community in Ogun state.

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In a bid to provide remote communities with clean and affordable energy, the Rural Electrification Agency under the aegis of the Federal Ministry of Power has delivered 100kWp Solar Hybrid Mini-Grid designed to adequately serve off-grid community in Ogun state.

This was disclosed by the agency in a tweet which was issued via its official Twitter handle today.

The Rural Electrification Agency disclosed that the intervention of the Solar Hybrid Mini-Grid to the community was successfully delivered under Rural Electrification Fund (REF).

The Executive Director, REF, Sanusi Ohiare encouraged the indigenes to optimise the impact of this intervention while using this access to clean, safe and reliable energy productively.

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However, the Managing Director of Rural Electrification Agency, Mr. Ahmad Salihjo, while sharing his remarks, explained to the community members that he strongly believes that the quality of lives will be improved and children will have better learning experiences with access to reliable electricity in Olooji community.

Mr. Ahmad commended  the community for their cooperation with the REA team and the Mini-Grid developer Acob Lighting Technology Limited.

What you should know

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Recall that Nairametrics reported on November 12, 2020, that the Federal Government through its implementing Agency, Rural Electrification Agency (REA), commissioned a 100KW solar hybrid mini-grid power plant in Ebonyi State.

The Agency disclosed that the completed project is in line with the government’s mandate, as the present administration seeks to provide remote communities with clean and affordable energy, through strategic investment in the deployment of Mini-grid systems that will provide power for 5 million homes in 2021.

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Energy

President Buhari calls for alignment of capacity, attraction of investments across power sector

President Buhari has called for the alignment of capacity and attraction of investments across components of the Power Sector’s value chain.

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President Muhammadu Buhari has called for the alignment of capacity and attraction of investments across the generation, transmission and distribution components of the Power Sector’s value chain.

This was disclosed by the Minister of Power, Engr Salam Mamman, who represented the President, in a speech read at the  launch of Eko Electricity DisCo’s Supervisory Control and Data Acquisition (SCADA) system in Lagos on Thursday.

He said, “We must ensure that there is an alignment of capacity and attraction of investments across the generation, transmission and distribution components of the Power Sector’s value chain.

“I acknowledge the Central Bank of Nigeria’s (CBN) financial support towards this project through the Nigeria Electricity Market Stabilization Facility granted in 2015. This facility significantly led to the successful completion of this project.

“My administration remains committed to addressing the liquidity challenges which are adversely affecting the Power sector’s viability. We have noted with grave concern: The increased fiscal burden on the Federal Government (FG) occasioned by the tariff shortfalls in the sector which are no longer sustainable.”

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Bottom line

It is obvious that the CBN’s Payment Assurance Facility (CBN PAF) targeted at supporting tariff shortfalls can no longer be extended and must be phased out to allow the sector’s financial independence.

The government is also aware that these tariff shortfalls sit on DisCos’ books and impair their ability to raise capital and invest.

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Energy

FG to begin online registration, monitoring of petrol stations, depots

The DPR has stated that it will commence the remote monitoring, registration, and accreditation of all petroleum products depots.

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FG to begin online registration, monitoring of petrol stations, depots

The Department of Petroleum Resources (DPR) has revealed that it plans to automate and begin remote monitoring, registration, and accreditation of petroleum products depots, retail outlets, and the entire downstream oil and gas industry, with the launch of the newly established Downstream Remote Monitoring Systems (DRMS).

While disclosing a statement in Abuja, the Head, Public Affairs of the DPR, Paul Osu, pointed out that the newly established Downstream Remote Monitoring Systems is expected to take off on December 1, 2020, after the launch in Abuja.

READ: Nigeria’s 5,000 BPD refinery will produce 271 million liters of petrol every year

According to a report by Vanguard, Osu explained that the DRMS is a web-based solution designed to provide intelligent regulatory and inventory management system for petroleum products supply and distribution from depot to retail outlets and also as a regulatory tool to monitor retail outlets and depot activities.

He said, “Other features of the application include retail outlets accreditation and re-registration, nationwide automated product inventory management, retail outlets coordinate recording for mapping purposes and transactions management and report generation of dealers nationwide.

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READ: NNPC says local operators must improve capacity to achieve low cost of oil production

“The establishment of DRMS is another strategic initiative of DPR to continue to create opportunities and enable business in the oil and gas industry in Nigeria.”

It can be recalled that the DPR had a few months ago, launched the National Production Monitoring System (NPMS), another online platform to assist the oil and gas regulator accurately monitor national crude oil production and exports, through the provision of a system for direct and independent acquisition of production data from oil and gas facilities in Nigeria

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READ: House of Reps summon Emefiele, NNPC GMD over unremitted N3.24 trillion

This is to ensure timely and accurate reporting of production figures and export data. This is also expected to guard against the crude oil theft that is prevalent in Nigeria’s upstream oil sector or reported cases of crude oil that is sold but unaccounted for.

The NPMS is an initiative that is developed as a replacement for the current paper-based report and ensures ready production reporting to the Federal Inland Revenue Service (FIRS) and the Nigeria Extractive Industries Transparency Initiative (NEITI) and other agencies.

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