News Agency of Nigeria
PENGASSAN demands transparent pump price system

PENGASSAN demands transparent pump price system

By Joan Nwagwu

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a transparent pump pricing template.

President of the union, Mr Festus Osifo, made the call at a World News Conference in Abuja on Monday.

Osifo said the call became necessary seeing that petroleum marketers have continued to exploit Nigerians through inflated fuel prices even with the decrease in the price of crude oil.

According to him, at the time crude oil was being sold at 60 dollars per barrel, petrol pump prices remained high at between N850 and N900 per litre, leaving consumers at a loss.

“The unjustifiable pricing is due to NMDPRA not being able to carry out its oversight duties effectively.

“It is the function of the regulator to ensure that Nigerians are not exploited.

“So we call on NMDPRA to have a platform where they can publish what the price ranges should be.

“So, we call on them to be allowed to carry out that responsibility. We call on them to do everything possible to ensure that Nigerians are not exploited.

“If this trend continues, it means that if the crude price comes down to 50 dollars per barrel, we will not see appreciable gains,” he said.

He praised the federal government signing the Executive Order on the upstream oil and gas industry especially as it relates to the need for companies to reduce the cost of operations.

“One of the challenges affecting us today in the Nigerian oil and gas industry is that the amount upstream companies spend in protecting their facilities, both on land, in the sea, shallow waters, deep waters, and others, is quite prohibitive.

“For one installation, you have a minimum of three or four security vessels. You then have to pay for them on a daily basis.

“You pay for the crew on a daily basis. You have to fuel them on a daily basis. Whereas in other countries, it is not like that,” he lamented.

Osifo identified the above mentioned situation as one of the primary reasons international oil companies (IOCs) have been exiting Nigeria.

While speaking on the persistent failure of Nigeria’s refineries to operate effectively, he reiterated the call on the federal government to adopt PENGASSAN’s recommendations made 15 years ago.

According to him, the recommendations of the NLNG model, where government holds 49 per cent and private investors hold 51 per cent should be adopted.

“We all understand the politics that comes in when it comes to national assets management.

“That is why in the past 15 years or more, we have called on the government consistently to apply the NLNG model in the management of the refineries because the model works,” he said.

He also explained that the union had reached a resolution with Sterling Oil Company following disputes over expatriate staff hiring practices. (NAN)

Edited by Emmanuel Yashim

Nigeria consumes 50m litres of petrol daily, says NMDPRA

Nigeria consumes 50m litres of petrol daily, says NMDPRA

By Yunus Yusuf

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the country’s daily petrol consumption currently ranges from 45 million litres to 50 million litres.

NMDPRA’s Chief Executive Officer, Mr Farouk Ahmed, disclosed this while speaking on the sideline of the ongoing 18th Africa Downstream Energy Week in Lagos.

The News Agency of Nigeria (NAN) reports that the 2024 OTL Africa Downstream Energy Week has the theme: “Alliances For Growth”.

Ahmed said  that higher petrol consumption during the fourth quarter, especially near the holiday season, was typical due to increased industrial and consumer activities.

He expressed hope that recent price adjustments/market liberalisation would reduce cross-border smuggling, helping to retain more petrol within Nigeria.

“We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.

He said that actual petrol consumption levels in Nigeria could decrease but were unlikely to drop significantly.

Discussing the conference’s theme, Ahmed emphasised the importance of  alliances in the industry for efficiency and cost reduction.

He said  that fewer shared facilities would be more efficient than numerous idle private depots, benefiting both businesses and consumers.

“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed said.

He said that shared facilities among agencies such as NMDPRA, Nigerian Maritime Administration and Safety Agency and the Nigeria Ports Authority  could reduce operational inefficiencies.

According to  Ahmed, NMDPRA does not plan to enforce mergers but industry players are encouraged to consider partnerships, especially in saturated markets, to improve efficiency and lower costs for consumers.

“With strategic alliances in place, we can reduce costs for consumers by making the most of our existing infrastructure,” he said.

Ahmed gave the assurance that NMDPRA would continue with evaluating project viability to ensure consumer benefit.

According to him, collaborative efforts and efficient operations are critical for a sustainable energy future in Nigeria. (NAN)(www.nannews.ng)

Edited by Kevin Okunzuwa/Ijeoma Popoola

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