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Energy
FG says vehicle owners to pay N250,000 to convert from petrol to autogas
FG says owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.
The Federal Government has revealed that vehicle owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.
This disclosure was made on Wednesday, December 2, 2020, by the Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum, Justice Derefaka, while on Channels Television’s Sunrise Daily, which was monitored by Nairametrics.
READ: FEC okays N5.4 billion for gas parks, airport security project
While stating that the conversion of vehicles from petrol to autogas will take at least 7 hours at the various conversion centres, Derefaka also pointed out that vehicle owners will have different payment plans to perform the conversion.
What they are saying
Derefaka, who is also the Programme Manager, Nigerian Gas Flare Commercialization Project, said:
“The cost varies. So, in terms of cost implication, it depends on the cylinder of the vehicle and of course, for a typical SUV cylinder, it is a bit higher. On the average, it is around N200,000 to N250,000 and this is for a four-cylinder vehicle, but it becomes a little bit higher for a six-cylinder SUV vehicle.”
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Nairametrics earlier reported that the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed that the corporation is going to provide free conversion services in some selected NNPC retail filling stations across the country.
Derefaka further explained that there will be different payment plans for making the conversion, adding that vehicle owners can have agreement with commercial banks to get the conversion done.
READ: FG to make forex available to oil marketers for import to drive down petrol price
He also said, “The owner of the car basically will decide to say I want to run on autogas or CNG or LNG and like the Honourable Minister had mentioned as well, conversion basically has different strands, you can partner with your bank and then the bank will now agree with the conversion centre to say ‘Convert this our customer’s car for free.’
“Not free in its entirety, but you now go and covert your vehicle. What happens is that the installer will put some form of mechanism, that each time you buy the gas; a certain amount will be deducted to pay for the conversion kits.”
While dismissing the notion amongst many Nigerians that the conversion fee is expensive, the ministerial aide noted that payment can be done within 5 to 7 months, in addition to saving up 45-50% cost associated with petrol.
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What you should know
- The Federal Government had on Tuesday launched the autogas scheme, called the National Gas Expansion Programme.
- The programme involves the conversion of fuel-powered cars and generators from petrol to gas, and is aimed at deepening domestic usage of natural gas in its various forms.
- The programme is also in line with the Federal Government’s plan to make gas the first choice source of cheaper and cleaner energy. This follows the deregulation of the downstream sector of the oil industry with sharp increases in prices of petrol.
- The Minister of State for Petroleum Resources said that the availability of Autogas as an alternative fuel option will afford Nigerians cheaper, cleaner and additional choice of fuel. Cheaper than the price of petrol and better for automobile and other engines.
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Business
Malabu Oil Scandal: Prosecutors demand JPMorgan documents
U.S bank, JPMorgan has been ordered by a court to present documents of a transaction regarding the $1.3 billion Malabu oil field sale.
Prosecutors at the Milan Court holding a trial for the $1.3 billion Malabu oil field sale have demanded that U.S bank JPMorgan present documents of a transaction as part of the corruption case regarding the sale of the oilfield.
This was revealed in a report by Reuters, as the court case over the sale of the oil field continues. Prosecutors claim that nearly $1.1 billion was stolen by Nigerian politicians and middlemen, with former oil minister, Dan Etete, keeping half.
Prosecutors demanded that the Milan court accept emails sent by UK authorities, coming from a separate case launched by the Nigerian government against the bank for its role in the controversial deal.
READ: FG’s plan for N350 billion revenue from oil field licensing suffers setback
The emails include a transaction between Nigerian Attorney General Mohammed Adoke Bello and JPMorgan using the address of a company owned by another Nigerian named Aliyu Abubakar. Prosecutors allege that he paid $500 million in cash as part of a bribe.
Both men have also been charged for corruption relating to the deal, with both pleading not guilty.
READ: FG seizes Dan Etete’s luxury private jet linked to Malabu oil deal
The second email includes two JPMorgan executives expressing views on whether to transfer $1.1 billion to accounts related to Nigerian banks. The Milan prosecutors said the emails were valid, stating that a Swiss and Lebanese bank had also expressed doubts over the transaction.
The Milan court said it would make a decision over the emails on the 3rd of February. The verdict of the court case is expected to be announced in March 2020.
READ: Shell faces Dutch prosecution over Nigeria license
What you should know
- Nairametrics reported that Dan Etete, former Nigerian Minister of Petroleum, said that the $1.3 billion sales of Malabu oil field to Shell and Eni in 2021 was legally perfect, with zero traces of corruption in the deal.
- Royal Dutch Shell announced that it would write down its investment in the controversial Malabu OPL 245 offshore field in Nigeria.
- Malcolm Brinded, an ex-Upstream Chief of Shell Petroleum, told international prosecutors that the sum of $1.3 billion paid by Shell and Eni in 2011 to acquire OPL 245 offshore field was lawful, and he had no reason to think it was illegal.
- A lawsuit filed by the Nigerian government against US bank JPMorgan Chase, claiming over $1.7 billion for its role in a disputed 2011 Malabu oil deal, will proceed to trial. The six-week trial in London is expected to commence on the first available date after November 1 2021, meaning that proceedings may not begin until 2022.
Energy
First cargo of Nigeria’s newest crude grade, Ayala, to arrive Europe
The first export cargo of Nigeria’s newest crude grade, Anyala, is reported to be on its way to Northwest Europe.
The first export cargo of Nigeria’s newest crude grade, Anyala, is reported to be on its way to Northwest Europe.
According to a report from S&P Global Platts, while quoting trading and shipping sources, the cargo is likely to travel from Fos-sur-Mer to the Cressier refinery in Switzerland through the SPSE pipeline.
It reported that Data Intelligence firm, Kpler, said the Aframax Minerva Clara loaded a 700,000 barrel stem of Anyala crude from the Abigail-Joseph floating production, storage, and offloading vessel on January 10 with the tanker on its way to the Fos-sur-Mer terminal, located at France’s Mediterranean port of Marseille.
The report also said that trading house Vitol had chartered this tanker, as it has a stake in indigenous producer FIRST E&P, which is the operator of the Anyala West oil fields, located in the shallow waters of the Niger Delta.
This is as a market source said the cargo is likely to travel from Fos-sur-Mer to the 68,000 b/d Cressier refinery in Switzerland, which is operated by Varo Energy, through the SPSE pipeline.
Varo Energy is a joint venture between Vitol, private equity fund, the Carlyle Group, and private investment fund Reggeborgh.
What you should know
- The new crude is from Nigeria’s shallow-water Anyala West oil fields in the Niger Delta, which struck first oil in November. Anyala is the country’s newest oil development since the start-up of the giant Egina field in late-2018.
- Anyala has been labeled a medium sweet crude grade, similar in quality to Nigeria’s flagship crude Bonny Light and when refined, Anyala will produce a high yield of middle distillates, making it attractive to both simple and complex refineries.
- It is also reported that a second cargo will load in March, with some Asian refiners already showing buying interest.
Energy
Price Watch: Consumers paid more for diesel and less for petrol in December
The December 2020 NBS report shows that consumers paid more for diesel and less for petrol than they did in November 2020.
The Price Watch report released by Nigeria Bureau of Statistics (NBS) for the month of December 2020 revealed that consumers paid more for Diesel (Automotive Gas Oil) and less for Petrol (Premium Motor Spirit), compared to that of November 2020.
The average price paid by consumers for diesel increased by 0.28%, from N223.74 in November 2020 to N224.37 in December 2020, while the average price paid by consumers for petrol decreased by 0.94% from N167.27 in November 2020 to N165.70 in December 2020.
Key highlights of the report
Diesel
- Consumers in Taraba (N266.00), Adamawa (N262.50) and Zamfara (N257.50) paid the highest average price for Diesel.
- While consumers in Kwara (N195.00), Gombe (N197.50) and Osun (N201.09) paid the lowest average price for Diesel.
- Overall, consumers in North West (N240.57), North East (N238.88) and North Central (N226.37) paid the highest average price for Diesel, while consumers in South West (N209.27), South East (N209.35) and South South (N216.25) paid the lowest average price.
Petrol
- Consumers in Abia (N176.19), Kwara (N172.43) and Kebbi (N169.92) paid the highest average price for petrol.
- While consumers in Kaduna (N155.00), Katsina (N160.25) and Bauchi (N162.57) paid the lowest average price for petrol.
- Overall, consumers in South East (N168.04), North Central (N166.94) and South South (N166.53) paid the highest average price for petrol, while consumers in North West (N163.79), North East (N164.47) and South West (N164.92) paid the lowest average price.
Since a lot of manufacturing companies rely heavily on diesel to power their machinery and equipment, the increase would have added to their cost of operations, culminating in consumers paying more for goods and services.
Also, one would have expected that the reduced price of fuel in December 2020 would lead to lower transport fares for commuters during the festive season, but that was not the case.
Anonymous
December 2, 2020 at 4:59 pm
May God have mercy on you people.
Ibromish
December 2, 2020 at 5:22 pm
The autogas project was launched to Fail. In a bid to beat down the petrol consumption, you introduced autogas, and then the vehicle owner will cough out NGN250,000 from nowhere to help you drive the policy?
That’s absolutely insane.
Everything is not rosy with gas usage especially accidents that accompany it can be fatal.
The autogas conversion plan will become a policy somersault with the deregulation of the downstream sector if FREE conversion will not be implemented as earlier promised
Foluso
December 2, 2020 at 8:48 pm
while petrol might be expensive for transportation, LNG answers to food as we cook with it. I hope we are not solving transportation problem to create another hassle in cooking?
Emeka
December 3, 2020 at 3:49 am
This is a welcome development, it’s long over due, but first more effort needs to be put into providing LNG filling across the country, because from Benin to warri you have only one, which is not even publicized, I found out on coincident.
Dennis
December 3, 2020 at 7:06 am
I think the conversations is mainly for politicians, those who embezzled from government offices and yahoo yahoo, though they don’t pray anyone has money to buy a good car nor even eat in this country, why #250,000.
Anonymous
December 3, 2020 at 7:31 am
And auto gas is ur concern right now as the country stands right? Craze pple evrywher
Olako Rex Forex
December 3, 2020 at 7:31 am
WE WILL HAVE BOMBS PLYING OUR ROADS 😪😪
Atabo Lydia
December 3, 2020 at 7:56 am
…Will it work in Nigeria? After converting the car to Autogas, how sure are we that gas dealers will not embark on regular increase of the product as petrol dealers are doing now? Abeg, leave us, so that at least we can be managing to buy it for cooking for now…
ikeolisa
December 3, 2020 at 8:44 am
Let’s have steady electricity first before autgas plan
Stanley
December 3, 2020 at 9:01 am
Gas costs and widespread availability in the face of the expected jump in demand may help determine if this is worthwhile.
Anonymous
December 4, 2020 at 1:15 am
Total madness! You can’t provide steady light, you want to enrich yourselves out of poor people’s pockets with all problems this will cause with your kind of lawless enforcement agents.
Jfon
December 4, 2020 at 7:46 am
Nigeria can’t make a bicycle from scratch to finish,let alone vehicles, and now convertion of an already designed vehicle to run on fuel will be done locally and for a cost that appears to me like another source of milk to the FG!
We obviously don’t have good roads, volatility of gas is unthinkable,this is the tropics and many of us largely illiterates, no awareness creation yet, and boom we r gonno have lng and cng in our vehicle tanks all over the country?
Are we really ready for this? It’s not like lng is even cheap at the moment.
If we couldn’t sustain our refineries, what assurance do we have that this too will not fail?
Anonymous
December 4, 2020 at 7:52 am
Koni ragba funyi all u people that are bringing out this auto gas issue, is that what next in this worthless country no food no money no work nothing nothing and u are talking about vehicle haaa fear God ooo
MBA
December 4, 2020 at 7:55 am
This one will not work in the Nigeria of today.
Moreover, if education is made free at all levels, even up to MSC level, then Nigerian can consider paying N250,000 to convert Tonga option.
MBA
December 4, 2020 at 8:01 am
Obviously this govt thinks backwards. You are considering gas option when even other African countries are already using electric cars.
Nigeria pls grow up. You are more than 60 yes old
Anayo
December 4, 2020 at 11:07 am
The goverment should pay for the entire cost and not tell us to apply for a loan. If they convert us for free they will make there money back buy charging us 1% extra. On any gas during fill up hopefully in 15 years they will get there investment back. At least will will be consuming our product