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Fuel Scarcity: Despite NNPC intervention, marketers hike ex-depot price of petrol by 42%

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LAGOS-IN spite of the claim by oil marketers that the petrol in the domestic market at the moment was imported by only the Nigerian National Petroleum Corporation (NNPC) as they could no longer import as a result of huge subsidy claims owed by the federal government, these marketers have hiked the ex-depot of products in their depots by 42 per cent, THISDAY’s market survey at the weekend has revealed.

fuel scarcityThe survey showed that some marketers were selling at the ex-depot price of N110 per litre, representing an increase of 42 per cent, compared to the official ex-depot price of N77 recommended by the Petroleum Products Pricing Regulatory Agency (PPPRA).It was not clear where the marketers received the products since it is only the NNPC that is known to import petrol, thus the scarcity situation across the country.
While some sources within the marketers told THISDAY that they bought from foreign traders that brought in vessels at the high seas, others said they bought NNPC products from third party, thus making the cost exorbitant.

The high cost of the products at the depots has made the pump price to remain high, with some filling stations selling at N120 per litre at the weekend.
However, NNPC’s ex-depot price in all the designated private depots dispensing the corporation’s imported products was N87 per litre, which is also government’s approved pump price at filling stations.

With NNPC selling at N87 at the depots, THISDAY could not ascertain how their dealers were able to sell at the same price at the filling stations.
But THISDAY gathered that independent marketers, for example, MRS was selling to bulk buyers at ex-depot price of N109 per litre and N110 per litre to their dealers.

EMMADEP Depot, which was built recently in Satellite area of Lagos was selling at ex-depot price of N105 per to dealers; Heyden Petroleum was selling at N102 per litre at the depot, while Integrated Oil and Gas at Ibafon area was selling at N100 per litre.
Other depots and tank farms and their ex-depot prices increased included Techno Oil, N101; Sahara Group, N98; Obat Oil, N98; Index Petroleum, N98; Swift Oil, N98; Folawiyo, N95; Ascon Oil, N95.50; and Dee Jones, N94 per litre.

However, major marketers – Forte Oil, Conoil, Mobil, Oando, MRS (formerly Chevron), Total, and NIPCO, which sourced product direct from the NNPC, were selling at ex-depot price of N87 per litre.
Independent marketers such as Acorn; AZ; Capital Oil; Euroafric; Fatgbems; Global Fleet; Hensmor and Honeywell did not have product at the weekend.
Other marketers with dry depots at the weekend include Ibakem; Ibeto; Lister; Rahamania; Eterna Oil; and Gulf Treasure.

Meanwhile,Gulf Treasure, Bovas, Heyden, MRS, and Integrated Oil, were also dispensing Dual Purpose Kerosene (DPK).

 

– This Day

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

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Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

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