Oando Plc Favour Ifeoluwa & Akinola Ajibade Oando Plc says it has completed and won the bid for the operatorship of oil block KON 13 in Angola. The firm which recently acquired Eni of Italy’s oil assets in Nigeria, said that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator. It further said hat the asset in which it owns 45 per cent participating interest, has estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER). “Oando Plc, Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a...
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By Akinola Ajibade
The Federal Government and Fuel Marketers have disagreed over what should be the normal price of the Premium Motor Spirit (PMS) also known as petrol, should be as the scarcity of the product persists in the country.
Nigerians woke up to witness scarcity of petroleum products on Monday, June 16th, this year, a development, which implies that the country is yet to get over the problem, which has become a common feature in the country.
While government insists on the pump price of
N165 per litre as stipulated in the petroleum product pricing template, depot operators are not, as they claimed that the escalating cost of purchase are unsustainable and that the product ( fuel) should attract higher prices.
The government also advised Nigerians against panic buying of PMS, disclosing that the country currently had over two billion litres of PMS in various depots.
NPC & PPMC's views
Both the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian National Petroleum Company Ltd. and the Pipelines and Product Marketing Company insisted that current pump price must not be altered after their visit to jetties in Apapa, Lagos yesterday.
The depots visited by the top officials of the agencies were NIPCO Depot and TotalEnergies Depot.
NMDPRA's contributions
Speaking on the issue, the Executive Director, Distribution Systems, Storage and Retail Infrastructure, NMDPRA, Ugbogo Ukoha said that petrol was a regulated product and urged marketers to comply with the pricing template.
Ukoha said the conflict between Russia and Ukraine had led to an increment in the cost of Automotive Gas Oil (diesel) which was a critical product used in transporting of petroleum products from the depots to the retail outlets.
He said: “So, when we observed that this poses a big challenge in the movement of other products, we made the representation to the Minister of State for Petroleum, Chief Timpreye Slyva, who graciously approved that the freight rate for trucks be increased.
“There’s a N10 addition which we will apply to the different routes to enable trucks to move to docks easily with less burden.
“With these kinds of efforts from government, we can only continue to appeal to operators within this industry to play by the rules.
“PMS is a regulated product and the prices are fixed. The ex-depot price is known. The pump price remains N165 and the authority is ever ready to enforce those rules.So, we will continue to urge Nigerians to keep within these operating rules," he said.
Ukoha said the focus of the stakeholders in the next few days would be to close the supply gaps and resolve the ongoing scarcity of petrol as soon as possible.
Similarly, the Group Executive Director, Downstream, NNPC Ltd, Mr Adetunji Adeyemi, said that the purpose of the visit to the depots was to get first hand information on the challenges responsible for the current scarcity.
Adeyemi said despite the challenges globally in terms of the supply chain, NNPC had continued to provide petroleum products, specifically PMS to Nigerians.
“Today we have about two billion litres of PMS in-country which is about 34 days sufficiency. So, there is sufficient petrol in the country.
“We are working with the entire stakeholders and players in the downstream sector to ensure that this product gets to the distribution channels and also the stations.
“We want Nigerians to continue to enjoy free flow of petroleum products,” Adeyemi said.
PPMC's role
Continuing further, the Managing Director, PPMC, Mr Isiyaku Abdullahi, said the company had been supporting transporters and marketers with diesel in form of palliative to ensure the smooth distribution of PMS and ameliorate the suffering of Nigerians.
Abdullahi said three vessels carrying about 60 metric tons of PMS was currently discharging at the Apapa jetty which would be further transported to Lagos and other parts of the country to restore normalcy to the situation.
On their parts, the Managing Director, NIPCO, Suresh Kumar and Site Manager, Total Energies,
Mr Ernest Umunna, Site Manager, respectively
assured Nigerians of product availability in their depots.
They also promised to carry out 24-hour trucking out operations to ensure that the scarcity situation in Lagos was resolved within the next few days.
DAPPMAN' s position
Member companies of the Depot and Petroleum Products Marketers’ Association of Nigeria (DAPPMAN), have complained that cost of petroleum products purchase and handling has escalated and eroding their profit margin.
Though the Association empathised with the public, it however blamed the suspension of the Petroleum Industry Act, PIA, implementation for creating hiccups in the system.
DAPPMAN, in a statement issued yesterday, by its Executive Secretary, Mr Olufemi Adebayo and made available to the News Mirror, the group regretted the current setback in the distribution and supply of premium motor spirit (petrol) at the various stations dispensing at N165 per litre.
According to Adewole, the on-going Russia-Ukraine War has adversely affected the world, including our dear country Nigeria.
Its further said that the developments have resulted in a corresponding increase in local prices of goods and services.
The above situation, DAPPMAN noted has had its adverse effects on the operating cost of managing the various petroleum products depots in Nigeria.
“You would note that the petrol we supply, is sourced, solely from NNPC Limited’s marketing subsidiary, Petroleum Products Marketing Company Limited (PPMC) for our onward sale to the public at the regulated price of N165 per litre.
“This purchase from the PPMC is achieved through funds sourced with high bank interest charges, alongside increased costs of hiring vessels utilized in the delivery of fuel cargoes to our depots.
” This is coupled with the intense scarcity of bunker fuel for running these vessels with increase in the cost of diesel used in powering equipment and machineries in our depots and retail outlets.” added the statement.
Offering further explanation, Adewole, said that overtime, depot Owners and the Government have struggled to sustain supply of petrol at the current pump price of N165 per litre despite the huge subsidy cost to Government and abysmal or no profit margins to the Depot Owners.
However he said, “But for its suspension, the implementation of the Petroleum Industry Act 2021 would have provided an ideal enabling environment by creating the free market in which demand and supply would affect fuel pump price.”
The Association however assured the public that Depot Owners, working tenaciously in concert with NNPC Limited, through its marketing subsidiary, will continue to ensure availability of products nationwide.
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