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NMDPRA Accuses Marketers of Manipulating Cooking Gas Market

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pointed fingers at marketers for charging non-cost reflective prices, which has pushed liquefied petroleum gas (LPG) prices as high as N2,100 per kilogram.

The authority disclosed this in a presentation delivered by its Chief Executive Officer (CEO) Rabiu Umar, during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources over rising LPG prices across Nigeria, adding that the malpractice was despite significantly lower indicative prices issued by the regulator.

According to the NMDPRA, consumers across the country are paying far above the regulator’s indicative pricing benchmarks due to marketer profiteering and distribution bottlenecks.

ALSO READ: Chevron Ships LPG Abroad from January to May

The NMDPRA noted that cooking gas sells for between N1,600/kg and N2,100/kg in the south-west despite an indicative price range of N1,018/kg to N1,177/kg.

In the north-central, LPG prices range from N1,550/kg to N1,950/kg against an indicative benchmark of N1,066/kg to N1,224/kg, while consumers in the south-south pay between N1,400/kg and N2,000/kg compared with an official guide of N1,021/kg to N1,179/kg.

Umar attributed the disparity to “non-cost reflective pricing” by wholesalers and retailers as well as infrastructure constraints affecting product distribution.

Cooking gas price had risen in May to N2,000/kg in Lagos and N1,600 in Abuja.

Energy

Isa Chairs World Energy Council Nigeria

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Abdulrazaq Isa, co-founder of Waltersmith Petroman Oil Limited, has emerged as the chairman of the governing board of the Nigerian Member Committee of the World Energy Council (WEC).

The Board, inaugurated in Abuja on 7 August, is made up of nine members with a diversity of backgrounds, drawn from policy, academia, energy institutions and private enterprise.

READ ALSO: Africa’s Biggest IPO: Dangote Promises Strong Returns, Generational Wealth for Investors

The Board membership consists, Dr Ainojie Alex Irune, 45-year-old, Managing Director of Oando Energy Resources and an Executive Director of Oando PLC. Bala Wunti, formerly Chief HSE Officer at NNPC Limited, serves as the committee’s chief executive, alongside Professor Wumi Iledare, Dr Mustapha Abdullahi, Mrs Aisha Farida Katagum, Dr Emmanuel Okon, Dr Victor Ekpenyong and Dr Imamuddeen Talba.

Irune’s inclusion is notable not primarily as an indication of generational change, but rather as a reflection of the extensive industry transformation evident within his comparatively early career. In many respects, his professional trajectory exemplifies the broader developments that have characterised the Nigerian energy industry over the past decade.

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Energy

Saudi Pipeline Disruption Pushes Nigeria’s Crude Beyond $115/barrel

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The attack on Saudi Arabia’s key crude oil pipeline, which led to closure and the disruption of a crucial route for avoiding the Strait of Hormuz during the US-Iran war, have pressured the global market into higher prices.

Consequently, the Nigerian oil and other major oil contracts moved northward and Brent gained as high as 3.7% to more than USD 108 a barrel.

Bonny Light traded above $115 per barrel over the weekend on macro energy strength/grand-dated Brent proxies. Light, sweet Nigerian grades maintain a healthy-to-positive quality premium over heavy/sour peers amid continued European and Mediterranean refinery appetite for low-sulfur yield.

READ ALSO: DPRP IPO: Dangote Rings Opening Bell at NGX

However, regional freight and prevailing prompt liquidity fluctuations impose a ceiling. Price metrics remain highly sensitive to macro geopolitical risk cues (Middle East supply concerns lift benchmark Brent into the $107/bbls territory).

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Energy

NNPC Ltd Moots 70 Smart Stations

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The Nigerian National Petroleum Company Limited (NNPC Ltd) would be deploying between 50 and 70 smart, self-service filling stations across the country within the next six months.

The Executive Vice President, Downstream, NNPC Limited, Mumuni Dagazau, made the disclosure on Thursday in Abuja while speaking at the commissioning of a technology-driven service station with an electric vehicle charging facility.

READ ALSO: DPRP Uses Court to Restrain NMDPRA from Meddlesomeness

The initiative, he added, is part of a broader plan to transform its conventional retail outlets into modern energy and mobility hubs offering petrol, electric vehicle charging, liquefied petroleum gas, compressed natural gas and other services.

It was gathered that a model of the mega station is located along Bill Clinton Drive, Airport Road, Abuja.

Dagazau noted that the newly commissioned station was the first of several smart outlets to be introduced nationwide, adding that the concept was aimed at moving beyond traditional petrol retailing to provide customers with multiple energy and mobility services at a single location.

He said, “This is the first of many smart stations that we are going to have around the country. What the whole concept is, we are trying to turn from a filling station to an energy hub, and we are rolling out a lot of stations. I think even in Abuja, for this type of station, we have about four or five. We have another two that we’re launching out in Kano. This sort of smart stations that we’re doing.

“We are hoping to roll out a significant number, probably about 50 to 70 of these types of stations within the next six months. So this is what you’ll be seeing going forward from NNPC.

“So what you see here is that we are using all sorts of energy available to us, including EV, electric energy. We are going to be using gas; we are going to be using petrol. So it’s a centre where you can come, and we are going to be calling it our energy hub.”

The new model will allow customers to dispense petrol themselves, including at night, through a digital payment system, although attendants will remain at the stations to assist customers.

Dagazau dismissed concerns that the introduction of self-service pumps would result in job losses, arguing that the expanded services would require more workers to operate and support the technology.

“Well, you saw all of the pumps have attendants. So I really don’t know what they’re talking about when it comes to jobs. What NNPC does is create jobs. What this does is create a job.

“You have an energy hub today. If you look at the average filling station and you look at the energy hub, you’ll find more people in the energy hub than you would find in the filling stations, right? So what we are doing is creating jobs for that. Somebody has to support the integration.

“Somebody has to support the automation. The EVs, we have to be here to support people. So nothing really changes for us. What we’re doing is just what the delivery to the customer is. The guarantee, the comfort of the customer, that’s really what we’re after. That’s what the smart delivery is all about.”

On his part, the Executive Director, Retail Operations and Mobility, NNPC Limited, Shettima Baba-Kukawa, said the Abuja station had a storage capacity of 180,000 litres of Premium Motor Spirit (PMS) and 45,000 litres of Automotive Gas Oil (AGO).

The facility has 16 PMS pumps, two AGO pumps and six electric vehicle charging points installed in partnership with African Motor Works. It is powered entirely by solar energy through a system with a capacity of more than 200 kilowatts.

Baba-Kukawa said the outlet would also feature a quick-service restaurant, coffee shop, automated car wash, modern service bay and LPG dispensing facilities, while CNG and a vehicle conversion centre were also planned.

He said, “The station is going to run 24 hours. And it is fully self-service. So for customers who want to trust themselves and dispense themselves, they can actually do that. Transactions are done on their phone app and concluded by dispensing the exact amount of fuel they purchased into their tanks.”

Despite the digital system, he said customers unable to use the application would not be excluded, as staff would be available to assist them.

Dagazau also disclosed that the NNPC Ltd had begun plans to modernise its existing stations, stressing that the company was responding to changing customer expectations.

He said, “We’re going to modernise our station. That’s the word that we’re going to say.

“You don’t want to be going into the same station every day, every day, every day. You are demanding, so our modernisation is a demand from what the customer wants. The customer deserves a better quality of service, and we are delivering that quality of service.”

He said the company hoped that most of its stations would eventually adopt the new model, although the pace would depend on customer demand and the investment required.

Similarly, the Managing Director, NNPC Retail, Huub Stokman, said the transformation was necessary as the downstream petroleum market evolved following deregulation and the commencement of operations at the Dangote Refinery.

He said consumers were increasingly demanding quality products, competitive prices, faster services, digital payments and alternative energy options such as EV charging and CNG.

“Above all, especially the younger generation, they want us to deliver it sustainably, hence the fact that you also see that this station is completely solar-powered,” Stokman said.

In a goodwill message at the commissioning, the Comptroller-General, Nigeria Immigration Service, KN Nandap, commended the NNPC Ltd for combining conventional fuel retailing with electric vehicle charging and other modern services.

Nandap said the facility reflected Nigeria’s growing adoption of technology, cleaner energy and smart mobility, adding that such investments could create opportunities for employment, skills development and industrial growth.

The development comes as Nigeria’s downstream sector undergoes significant changes, with deregulation, increased domestic refining capacity and the emergence of alternative fuels reshaping how petroleum products are sold and consumed.

The NNPC Ltd said its smart-station programme was intended to position its retail network for the changing market by combining conventional fuel sales with cleaner energy, digital services and other consumer-focused offerings.

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