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Oil price slump:Nigeria reduces pump price of petrol to N87.00

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FUEL PUMP

FUEL PUMP

By Yemie ADEOYE

HOUSTON TX-FOLLOWING  the sharp drop in global crude oil prices the President Goodluck Jonathan led Federal Government of Nigeria have finally succumbed to pressure from within and outside the country to ensure an immediate reduction in pump prices of premium motor spirit, (PMS) otherwise known as petrol.

Nigeria’s Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, on Sunday announced a reduction in the pump price of Premium Motor Spirits better known as petrol from N97 per litre to N87 per Litre, effective midnight of Sunday 18th January, 2015.

The Department of Petroleum Resources, DPR and the Petroleum Products Pricing Regulatory Agency, PPPRA have been mandated to ensure immediate compliance.

this is coming on the heels of several calls both at home and abroad for the Jonathan Government to ensure an immediate reduction as the continued high price in Nigeria can not be justified amidst the sharp drop in oil prices.

Prominent amongst bodies calling on the federal government to reduce pump price of petro, in the Country is the Nigerian Labour Congress which  claimed that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.

The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, statement that it was buying products from foreign refineries at the rate of N171.36 =$1.

PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre.

When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

This is coming even as other watchers of the economy claimed that the decision  of the PDP  federal government to reduce the fuel prices less than 4 weeks to the general elections is simply a political moves aimed at garnering electoral votes in favour of the ruling PDP as it is a common knowledge that every Nigeria is favorably disposed to fuel price reduction as the product is consistently needed to have a life in today’s Nigeria.

Meanwhile, some state actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.

Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre

since the commencement of the global drop in crude prices several countries around the world have effectively reflected this at the pumps as the price of gasoline around the world has dropped by almost half. in the United state prices that hovered around $3.60 to $4.00per gallon now dances between $1.70 to $1.99 for a gallon of gasoline (4 liters of petrol).

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.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

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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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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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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