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FG says recent petrol price increase linked to Pfizer Covid-19 vaccine success

The Federal Government has linked the recent increase in the pump price of petrol to the success of Pfizer’s Covid-19 vaccine.

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FG estimates that alternative petrol, CNG would cost N97 per litre, New PIB amends royalties by oil firms as Sylva clarifies position on scrapping of NNPC, autogas, FG to establish petroleum depot, oil and gas logistic centre in Akwa Ibom

The Federal Government has said that the recent increase in the pump price of Premium Motor Spirit (PMS), otherwise known as petrol, is due to the announcement of a positive outcome in the final stage trial of the coronavirus vaccine being developed by American pharmaceutical giant, Pfizer Inc in collaboration with BioNTech.

The explanation follows the public outcry and criticisms that have greeted the petrol price increase.

READ: Petrol price to increase as subsidies drain Government’s revenue

This disclosure was made by the Minister of State for Petroleum Resources, Mr Timipre Sylva, during an interaction with State House correspondents on Monday, November 16, 2020, after a routine meeting with President Muhaammadu Buhari at Aso Villa, Abuja.

According to a report from Channels Television, Sylva pointed out that the announcement by Pfizer, that its COVID-19 vaccine is over 90% effective, triggered a slight increase in the price of crude oil in the global market.

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He said, “What happened recently was because of the announcement of a vaccine for COVID-19 by Pfizer. With that, crude oil prices went up a little bit.

READ: NNPC spends N535.9 billion on subsidy, FAAC in Q1 2020

“If you have been following crude oil prices, you would have seen that crude oil prices went up a little bit as a result of this announcement. So, when crude oil prices go up a little bit, then you will see that (it will) instantly reflect on the price of petrol, which is a derivative of crude oil.”

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Sylva, who pointed out that this is not the first time that the Federal Government will be giving this explanation whenever there is a movement in petrol price, said that the pump price of petrol is directly determined by the price of crude oil in the global market.

He said, “When the price of crude oil goes up, then it means that the price of the fixed stock has gone higher; it will also affect the price of the refined product and that is why you see that product prices are usually not static, it depends on the price of crude oil which goes up and down.

READ: Commissioner attributes high cost of rice to increased production cost

“That is why we say, deregulate so that as the price goes up or down, you begin to go up and down as well at the pump. Before now, we fixed it – which was not optimal for us as a country.”

The Minister while speaking on the petrol price deregulation explained that the price of petrol will continue to fluctuate depending on the price of crude oil. He said it may crash again to a much lower figure, like was experienced in March 2020, if the price of crude drops again.

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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]

3 Comments

3 Comments

  1. Anonymous

    November 19, 2020 at 9:32 am

    Nigeria govt have started again with this excuses hmmmmm

  2. Precious

    November 19, 2020 at 6:07 pm

    This their excuse did not fly well with us.

  3. EI

    November 19, 2020 at 8:07 pm

    God punish devil

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Energy

Engineer Sanusi Garba assumes office as Chairman of NERC

The new NERC boss has assumed office today in an investiture event witnessed by other Commissioners of the Commission.

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Engineer Sanusi Garba, today, December 3, 2020, formally assumed office as the Chairman of the Nigerian Electricity Regulatory Commission (NERC).

This is according to the statement issued by the media team of the NERC via the official Twitter handle of the Commission.

Engineer Garba whose appointment was confirmed by the Nigerian Senate on Tuesday will be replacing Professor James Momoh, the outgoing chairman of the Commission.

Speaking at the handover ceremony today, the New Chairman of the Commission recognized the efforts and the hard work of Prof. Momoh and thanked the outgoing chairman for his contributions to the development of the Commission and the sector in general.

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However, Professor Momoh on his part pledged his continuous support to the Commission and thanked President Muhammadu Buhari for the opportunity to serve the country.

What you should know

  • The new Chairman of Nigerian Electricity Regulatory Commission (NERC), Engineer Sanusi Garba is a seasoned professional in the Nigerian Energy Supply Industry (NESI), and also a top officer in the Commission.
  • Prior to his nomination as the Chairman of NERC, Garba served as the Vice Chairman of NERC, under the leadership of Prof. Momoh. He also served as the Chief Executive of Katsina Steel Rolling Co. Ltd and the Director (Power) in the Federal Ministry of Power with responsibility for the Generation, Transmission and Distribution aspects of the electricity industry.
  • He also served as Executive Director (Generation) at the Niger Delta Power Holding Co. Ltd during which he provided technical and commercial leadership for the efficient operation of seven (7) NIPP thermal power plants.
  • Engr Garba, who is a seasoned professional has served on many Federal Government Committees including the Presidential Committee on Power Sector Reform (2007/8) and the Presidential Task Force on Power (2009/10).

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Energy

Buhari moves against DISCOs that collect money for prepaid meters

President Buhari has warned that tough measures will be taken against DisCos or their agents selling prepaid meters to their customers.

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Buhari moves against Discos and agents that collect money for prepaid meters

President Muhammadu Buhari said he will enforce tough measures against any electricity distribution company (Discos) or their agents selling prepaid meters to their consumers, against the directive that they should be distributed free.

According to a report from Punch, this disclosure was made by the Special Adviser to the President on Infrastructure, Ahmed Rufai Zakar, who represented President Buhari at the FGN/NLC-TUC ad-hoc committee on electricity tariff stakeholders engagement in Ibadan, Oyo State on Wednesday, December 2, 2020.

He said the President understands the plight of Nigerians on issues surrounding electricity and is determined to deal with bad elements.

(READ MORE: Power: Distribution of meters resumes in Lagos, Abuja, Kaduna and others)

What they are saying

He said, “We have made it very clear through the regulator’s direct order, as well as intervention from the Ministry of Power that the meters are to be provided to Nigerians at no cost. Even for meters that were paid for, there is the directive from the regulator to the discos that they would need to find a way to reimburse those citizens over time.

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“In cases where we find any disco or disco representatives selling the meters or exploiting Nigerians to be able to get meters by paying, we would take the full measures of the law. The President has mandated that these meters must be free. We have also said that they must come from local manufacturers. This would create jobs and revive our industry.

What you should know

  • The President had earlier directed that 6 million prepaid meters manufactured or assembled locally should be made available to electricity consumers to stop their opposition against estimated billing and even increase in electricity tariff.
  • While stating that he remains committed to the protection of poor and vulnerable Nigerians from increased electricity tariffs and arbitrary estimated billings, the President said he is working to ensure that Discos commit to increasing the number of hours of electricity supply everyday and improve on the quality of service.

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Energy

TCN restores collapsed electricity grid

TCN has now restored the electricity grid system which collapsed across the country over the past weekend.

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TCN MD Abdulaziz, four other directors receive appointment letters

The Transmission Company of Nigeria (TCN) has restored the collapsed electricity grid system across the country.

This was disclosed by the Acting Managing Director of TCN, Mr Sule Abdulaziz, during a media briefing on Wednesday.

According to the TCN boss, the system which collapsed on Sunday evening was restored within 40 minutes of the incident.

He said, “The company immediately went into action and stabilised the system in Abuja, before other parts of the country. There is nothing strange but it is normal for a system to collapse and that can happen in any country of the world.

“Since I came on board, we never had any system collapse and this one that happened on Sunday was restored immediately which is the fastest system collapse recovery. We are guarding the grid, we don’t want the system collapse to happen, but when it happens, the most important thing is what was done and how it was done to restore the system.”

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What you need to know

Three days ago, Nairametrics reported that the recent power blackout in the country was due to multiple trippings.

General Manager, Public Affairs, TCN, Ndidi Mbah, who made the announcement through a statement said the company had started the process of restoration to the national grid.

Mbah pointed out that the places that power is yet to be restored were Calabar, Makurdi, Jos, Gombe, Yola, Ugwuaji and Maiduguri axis.

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She stated, “The Transmission Company of Nigeria (TCN) regrets to inform electricity consumers nationwide that at 11:25 am today, the nation’s electricity grid experienced multiple trippings, which led to the collapse of the system.’

“TCN has since commenced grid restoration; power has been successfully restored to every part of the country, except Calabar, Ugwuaji, Markurdi, Jos, Gombe, Yola, and Maiduguri axes. The effort is however ongoing to ensure full restoration nationwide.”

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