Oil
Direct fuel supply to marketers will easy up scarcity – IPMAN
LAGOS-THE Independent Petroleum Marketers Association of Nigeria, IPMAN, said the decision of the Nigerian National Petroleum Corporation, NNPC, to supply petrol directly to marketers will go a long way to ease up the lingering fuel scarcity in the country.
The National Operations Controller of IPMAN, Mr. Mike Osatuyi, who stated this also called on the federal government to deregulate the industry now that the oil price has fallen.
Speaking with journalists during an inspection of filling stations around Akute, Ogun State, Osatuyi said their members across the country benefitted from the intervention, adding it would go a long way to stop scarcity and selling of petrol above regulated pump price. He assured that his station and those of other members would not only sell at N87 per litre but will operate for 24 hours to ensure that motorists and commuters don’t suffer for lack of access to fuel.
Osatuyi said: “We are here to showcase what the Federal Government is doing in terms of PMS intervention scheme. You can see that the government is bringing petrol to dealers to sell at official price of N87 per litre, and we are selling at N87. They brought two trucks which we are yet to pay for. This is unbelievable. We have never seen this before.
I want NNPC/PPMC (Pipeline and Product Marketing Company) to continue and sustain it. We at IPMAN can assure the government that we will support them now they have agreed to partner with us. We will not fail them. This is for the benefit of the masses, which the government of President Muhammadu Buhari stands for.
“The product is sold at N87 here at NYCE filling station, but about 80 per cent of filling stations in Nigeria sell above N87 but with this intervention, the price of N87 per litre will be uniform across the country. The process has just started, we need to be patient and believe in government, and very soon the question of selling above the official price will not be there at all.
According to Osatuyi, IPMAN members control about 84 percent of retail outlets in the country, which put them on a good stead to reach every part of Nigeria. “IPMAN members own and control about 84 per cent of the retail outlets in this country, so now the government is ready to work with us, we too are ready to work with them. If they give us the fuel, we sell it. NNPC can only supply 52 per cent of our national need. I understand and have confirmed that they have stepped up importation to bridge the gap. I believe they will sustain the intervention. If they sustain it, we are ready to sell to the public.”
Osatuyi however, noted that the ultimate thing for the government is to deregulate the downstream. He said since former President Olusegun Obasanjo deregulated diesel about 14 years ago, nobody has heard anything about diesel scarcity. If petrol is deregulated, we will have various prices of marginal differences but fuel must be available.
IPMAN is not alone in the call for deregulation of the petrol in Nigeria. The International Monetary Fund, IMF, has also called for using the present low price regime to remove fuel subsidy and deregulate fuel prices. The IMF in its updated strategy recommended an automatic price change mechanism that changes price slowly.
Price modulation means that government will ensure initial slow price increases by regulating the components of fuel price such as taxes, freight, margins, transport, storage and bridging. The slow fuel price increase will reduce immediate mobilization and opposition. There will be no direct government regulation of fuel prices. Rather, the marketers and traders will fix the final fuel price. Price modulation fixes the bottom commodity price in a market by tweaking price components. The Petroleum Products Pricing Regulatory Agency, PPPRA, will fix the minimum fuel price and the fuel cabal/marketers can sell at whatever price the customer will pay.
It was gathered that in several meetings held in Abuja and Lagos, IMF staff members explained the updated strategy to officials of the Federal Government of Nigeria. The report of these meetings stated: “Lower oil prices provide an opportunity to phase out fuel subsidies. The recent drop in crude oil prices (and lower petrol and kerosene prices) could facilitate the completion of the subsidy reform, which started in 2012.
Vanguard
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.
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.
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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