Energy
Prices of Petrol, Diesel, LPG Will Continue to Fall – NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG) will continue to decline across Nigeria.
Its Chief Executive Officer, Mr. Saidu Mohammed, stated this at the weekend in Ogbele Community, Ahoada East Local Government Area of Rivers State, during the inspection of facilities belonging to Aradel Holdings Plc.
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Mohammed, who attributed the expected price reduction to rising supply, increased competition, and sustained private-sector investment in the oil and gas sector, urged the private sector to pump between $30 billion and $50 billion into the midstream petroleum sector.
Highlighting the expected reduction in energy prices, the NMDPRA boss said Nigerians were gradually moving towards affordable energy as improved supply continues to drive price stability.
“The more supply we have, the lower the price. This is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
Mohammed explained that the removal of fuel subsidy has allowed market forces to function properly, leading to efficiency across the downstream sector.
“Sustained competition, rather than subsidies, will guarantee adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed added.
The agency boss stressed the need for additional refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG, and petrol.
The NMDPRA chief executive said Nigeria’s ambition extended beyond local consumption to exporting petroleum products to Africa, Europe, and the Americas.
“However, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.
Mohammed noted that President Bola Ahmed Tinubu strongly supported a free-market economy, recalling that subsidy removal was the President’s first major policy decision.
According to him, the policy unlocked private sector participation and stimulated investments across the oil and gas value chain.
Assessing the condition of state-owned refineries, Mohammed said their operational conditions largely remained the responsibility of the Nigerian National Petroleum Company Limited (NNPCL).
NMDPRA, he said, was engaging NNPCL to ensure the delivery of crude oil and petroleum products to the Port Harcourt and Warri refineries reserves.
“Delivery of products to the reserves and restoring loading activities at the refineries will boost local economies and revive product distribution within host communities.
“Once product loading resumes, Nigerians will begin to feel the economic impact, even before full refinery operations,” he said.
Mohammed added that Nigeria’s economic growth depended heavily on the rapid expansion of locally owned midstream assets.
Advising the private sector to pump between $30 billion and $50 billion into the midstream petroleum sector, Mohammed said: “I said it two days ago that the midstream sector alone will require about $30 billion to $50 billion investment. Those investments can only come from the private sector, not the government anymore.
“So, as an authority, as a regulator, what we will do is to make sure that we lay down the desired enablers for them to operate and attract the investment that Nigeria needs.
“But first of all, we have to improve how we do things and the improvement can be seen here in a world-class facility being operated by Nigerians. That is the way to go.”
The NMDPRA said the government agency was impressed to see fully-integrated facilities designed, built, operated, and fully-funded by Nigerians
He said the facilities inspected during his three-day operational tour across Rivers State demonstrated that Nigerians had the capacity to design, finance, build, and sustainably operate world-class energy infrastructure.
Mohammed singled out Aradel Holdings, stating that the company had proven that Nigerians could efficiently operate a refinery sustainably without foreign operatorship.
The NMDPRA announced that Aradel’s ongoing expansion would make it possible to load petrol from its facility before the end of next year.
“Aradel has supplied gas to the Nigeria Liquefied Natural Gas (NLNG) for about 13 years, alongside operating an 11,000-barrels-per-day refinery.
“The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria,” he said.
Mohammed called for more investments in refining, noting that the Dangote Refinery alone cannot meet domestic, continental, and global demands.
“Aradel has supplied gas to the Nigeria Liquefied Natural Gas (NLNG) for about 13 years, alongside operating an 11,000-barrels-per-day refinery.
“The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria,” he said.
Mohammed called for more investments in refining, noting that the Dangote Refinery alone cannot meet domestic, continental, and global demands.
He said: “We are not overwhelmed by rising demand, as the company is already expanding its refining capacity beyond current levels.
“We see the demand; we see the market. All we are trying to do is to continue to make those investments that allow us to meet the demand. The demand is very huge.
“We have received support from the regulator. We have seen all kinds of support that continues to make our operations grow from one stage to another.
“It is a great and worthy space for fellow investors and operators to come into. The more we are, the more we build on the redundancy and the resilience of our energy security as a nation.
“We are committed to that course. We are looking at our capacity, and we are just projecting to grow it from one level to another. We are not overwhelmed, but we are doing our best to be part of that solution for energy security.
“Aradel aims to be part of the long-term solution to Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition, and prioritisation of domestic energy needs.”
The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has completed the turnaround maintenance on the Bonga Floating Production, Storage and Offloading (FPSO) vessel, leading to resumption of production at Nigeria’s premier deepwater field on March 6, 2026.
Biztellers reports that the project was delivered 11 days ahead of schedule and without any safety incident, reinforcing SNEPCo’s longstanding commitment to operational excellence and asset integrity.
“Completing the turnaround safely and ahead of schedule is a testament to the dedication and professionalism of our Nigerian workforce and the helpful support of our partners,” SNEPCo Managing Director Ronald Adams said. “The achievement not only secures the long‑term integrity of the Bonga FPSO but also positions us strongly for the successful delivery of the Bonga North project, which will leverage the improved reliability of the FPSO.”
The exercise which began on February 1, 2026, highlights SNEPCo’s leading role in advancing deep‑water expertise in Nigeria. Of the 55 companies involved in the execution, 43 were wholly Nigerian. Additionally, eight of the 12 international service providers maintain operational bases in Nigeria, contributing to knowledge transfer and increased local investments.
More than 1,000 personnel worked offshore during the turnaround, with over 95% being Nigerians involved in maintenance, engineering, operations, inspection and construction. Thousands more supported activities from onshore locations, reflecting the depth of Nigerian capability in offshore oil and gas operations.
Adams added: “We acknowledge the support of several stakeholders towards the successful execution of the exercise, including the NNPC Upstream Investment Management Services (NUIMS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB) and our partners.”
Modupe Asudo
Sahara Group, a leading global energy and infrastructure conglomerate, has commissioned MT Asharami Ghana, a 40,000‑cubic‑metre Liquefied Petroleum Gas (LPG) carrier, expanding its fleet capacity, while strengthening Ghana’s clean energy supply chain and LPG distribution network.
The dual‑fuel vessel improves operational efficiency, enhances supply reliability, and supports lower‑emission LPG logistics as consumption grows across Ghana and the wider sub‑region.
Ghanaian President Mahama and Sahara Executive Directors
Speaking at the commissioning in Ulsan, South Korea, President John Dramani Mahama described the vessel as “a significant milestone in strengthening the infrastructure that underpins the global LPG supply chain,” noting that expanded shipping capacity is critical to improving supply security, reliability and efficiency for countries that rely partly on LPG imports.
He commended Sahara Group, WAGL Energy and all partners involved for their “leadership, technical expertise and strategic foresight,” adding that the project reflects “the power of partnership” in advancing safe, efficient, and responsible energy distribution.
President Mahama wished the MT Asharami Ghana safe sails, expressing confidence that the vessel would inspire further investment and collaboration across Africa’s energy value chain.
According to Wale Ajibade, Executive Director, Sahara Group, the vessel supports Ghana’s clean energy ambitions through integrated infrastructure.
“MT Asharami Ghana is more than a vessel; it is part of a deliberate strategy to strengthen LPG supply security and support Ghana’s clean energy ambitions. It secures an additional 25,000-Metric-tonne stock security for the Ghana economy, alongside the soon to be commissioned 6000-metric-tonee of 12.000-metric-tonne land storage in Tema,” he said.
With the addition of Asharami Ghana, Sahara Group’s LPG carrier fleet now comprises six delivered vessels with a combined capacity of 202,000 cubic metres. Supported by partnerships with WAGL Energy, NNPC Limited and other stakeholders, an additional 270,000 cubic metres of capacity is under construction and due for delivery by September 2028.
Temitope Shonubi, Executive Director, Sahara Group, said Asharami Ghana is part of Sahara’s integrated LPG infrastructure strategy spanning shipping, storage, and downstream distribution globally, including the development of a 12,000‑metric‑tonne land‑based LPG storage terminal in Tema, with a 6,000‑metric‑tonne first phase scheduled for completion in May 2026.
He thanked Yaa Serwaa Alifo, MD of Asharami Ghana, for her resilience and insistence to dedicate a ship of “this magnitude solely to the Ghana Market and its landlocked neighbours.”
Ghana is targeting LPG adoption of 50 per cent of households by 2030, up from about 30 per cent today. Sahara’s investments will support clean energy access for more than 35 million people, while strengthening Ghana’s role in regional LPG trade to neighbouring and landlocked West African markets.
The commissioning comes in Sahara Group’s 30th anniversary year, guided by the Sahara Beyond XXX milestone, underscoring Sahara’s focus on building an enduring enterprise that delivers responsible growth, shared prosperity and long‑term impact across its markets.
Nigeria’s crude oil production dropped to 1.31 million barrels per day in February, even as local refineries continue to grapple with inadequate domestic crude supply needed to sustain operations.
The development shows that Nigeria again failed to meet its crude oil production quota of 1.5 million barrels per day approved by the Organisation of the Petroleum Exporting Countries (OPEC), as output declined sharply in February 2026.
Data from OPEC’s latest Monthly Oil Market Report, based on direct communication from member countries, showed that Nigeria produced 1.314 million barrels per day in February, down from 1.459 mbpd recorded in January.
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The figures indicate a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation.
Nigeria’s inability to meet its OPEC production quota is not only affecting its oil export earnings but also adversely impacting domestic refineries that are starved of feedstock for their operations.
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