Actual pump price hits N1,202.7/litre

• Over 90 licensed marketers abandon petrol import as deregulation flops

• Truck drivers may suspend operations as diesel rises to N1,400/litre

• Price control unsettles Dangote, other local refineries

Notwithstanding denials from government, Nigeria is paying about N907.5 billion

subsidy on premium motor spirit (PMS) otherwise called petrol monthly as the

depreciation of the naira has pushed the actual cost of litre of fuel to N1,202.7.

Owing to unresolved price differential, over 90 marketers, who were licensed to import petroleum products into the country have been unable to bring in any products almost nine months after President Bola Tinubu announced the deregulation of the downstream segment of the petroleum industry.

Amid these concerns, the Nigerian Association of Road Transport Owners (NARTO), which distributes petroleum products across the country, told The

Guardian yesterday that they have concluded plans to down tools as they demand double of the existing transportation allowance, which is ordinarily meant to be determined by market forces.

As the price of diesel moves upward to about N1,400 per litre, NARTO said the cost of diesel from Lagos to Abuja has jumped to N1.4 million compared to the

N600,000 it was mid-last year.

With the resumption of the Port-Harcourt Refinery yet to materialise, there are indications that the price control by the government despite deregulation would

frustrate Dangote Refinery and others who are now relying on imported crude oil for processing.

As of the fifth week of the year, when the crude oil price was around $78 per barrel, PMS Eurobob delivered to West Africa was $820.27 per tonne. There are 1000 litres in every tonne, which brings the landing price of petrol per litre in Nigeria to $0.8. Going by the official exchange rate of N1,503.4 to a dollar, the landing price of a litre of PMS should cost N1,202.7. Without other transportation fragments and marketers’ margin, the Federal Government is currently paying about N585.5 subsidy on every litre of petrol.

With the country’s daily consumption dropping from about 65 million litres per day to about 50 million litres, the N585.5 per litre subsidy would be N29.28 billion per day and about N907.5 billion monthly.

Across most West African countries, the price of petrol now hovers between N2,000 and N1,400. Yesterday in Cameroon, a litre of PMS was N2,011; in the Benin Republic, it was N1,633. In Togo, it was N1,680 per litre while it sold for N1,500 per litre in Ghana. It was N2,080 in Mali and N2,042 in Burkina Faso.

Coming at a time when the International Monetary Fund (IMF) is asking Tinubu to remove petrol and electricity subsidies, a confirmation of the position of The Guardian and stakeholders that the government is paying subsidies, marketers, who spoke yesterday, said a crisis is looming in the downstream segment of the petroleum industry. In mid-August, Tinubu stated that despite the deregulation of the downstream
market, the pump price would remain unchanged, as there are no immediate plans to raise fuel prices.

As at the last week of August, PMS was trading for $1,030.11 per metric tonne at the international market compared with the $859.25 it traded around July when

NNPC increased the pump price to an average of N617 per litre. As of the first week of February 2024, while the price came down to $820 per ton, naira had witnessed a free fall that pushed the price of the commodities to about two times of its subsidised cost.

Without any budgetary allocation in the 2023 appropriation, the Nigerian National Petroleum Company Limited (NNPCL) has been the sole importer. Generating over 80 per cent of the foreign exchange, NNPCL imports the products at preferred exchange rate and retails to other marketers.

The expenses, that were not covered by budgetary allocation, are recorded as under-recovery in NNPC’s books.

The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, said most of his members who are licensed can import and sell at the current rate.

According to him, the government should create a level playing field and provide foreign exchange at the same level the NNPC is accessing it.

“We have not imported a litre since we got licenses,” Shettima said, adding that “only NNPC is importing”.

Last year, the Chief Executive Officer of the Nigerian Midstream Downstream Petroleum Regulatory Authority, Farouk Ahmed, noted that the federal government was considering options that would sustainably address the concerns of the sector and offered 90 licenses for the marketer to import products.

“NNPC has assured of supply and also the marketers have expressed their concerns about the availability of foreign exchange to enable them to import.

“We as regulators continue to say the market is open for everyone. We have issued licenses to all those who have applied to over 90 marketing companies.

“We have given them access to all the required support that they needed to ensure there is a constant supply of petrol products in the country,” Ahmed said.

President of NARTO, Othman Yusuf, sai transportation of petroleum products across the country is under threat and would be suspended as the environment is

Following the recent mass transfer of staff by the Central Bank of Nigeria (CBN), and the relocation of the Federal Airport Authority of Nigeria (FAAN), the Nigerian Upstream Regulatory Commission (NUPRC) has concluded plans to relocate some departments to Lagos from Abuja.

The move will see over 200 staff of the commission moving from Abuja to Lagos, it was learnt.

Recall that the federal government’s decision to relocate some departments of the CBN and the headquarters of FAAN from Abuja to Lagos had stirred controversy and discontent among stakeholders.

The NUPRC, formerly the Department of Petroleum Resources (DPR), is a department under the Federal Ministry of Petroleum Resources (FMPR).

It monitors the oil and gas industry to ensure compliance with relevant regulations and laws, as well as oversees the safety and other regulations that relate to the exportation and importation of the products into the country

A senior management source who spoke with Daily Trust said: “The Commission Chief Executive (CCE), Gbenga Komolafe has started making moves to relocate some departments to Lagos.

“He claims that this is to create space for new staff he wants to recruit. This is totally not justifiable as the office was moved to Abuja from Lagos not more than two years ago, and a very big new headquarter building is almost completed.

“So far they are transferring 200 staff of the upstream out of Abuja.”

Located at the strategic Central Business District of the Federal Capital Territory (FCT) Abuja, the new headquarter is a 10-storey building which was approved by the Federal Executive Council (FEC) in 2020, and was initially scheduled for completion in 24 months.

It spans 4,150 sqm with the main building itself occupying a total ground floor area of approximately 48,400 sqm, comprising a basement and a penthouse.

Effort by our reporter to reach the head of Public Affairs, Mrs Sonola to confirm the rationale for the transfer was not successful as she did not pick or return her calls, neither did she respond to text and Whatsapp messages sent to her phone as at the time of going to press

When Daily Trust contacted the Chief Executive, Gbenga Komolafe, on Tuesday, he said: “Will call and speak with you in few minutes on the issue and general regulatory direction by the NUPRC pls.”

However, 24 hours after, and after calls and sending several reminders, there was response from him.

Gospel singer, Moses Bliss’ fiancee Marie has thanked him for showing up to celebrate her as she got called to bar in England.

Sharing their loved-up photos, Marie revealed that distance has never stopped Moses from making her know, see, and feel loved consistently. She also thanked God for making her cross paths with a man after his own heart, whose way of love reminds her of God’s love towards her.

She wrote;

“Distance never stopped you from letting me know, see, and feel loved consistently.
No matter the season you’d always find a way, to the extent of clearing your diary and flying to London for 24hrs, just to celebrate a milestone with me.
I bless God for crossing my path with a man after his own heart, whose way of love reminds me of the father’s own towards me.
I love you @mosesbliss“

Four strangers who allegedly visited the home of Kelvin Kiptum four days before his death in a car crash have reportedly been arrested for questioning.

The Kenyan marathon world-record holder, 24,  died in an accident, which also killed his Rwandan coach Gervais Hakizimana, in the high-altitude region of Kaptagat in Western Kenya, known as a training base for the best distance runners the world over. 

The sad news broke out just days after World Athletics ratified his world record time of 2:00.35 which he set with a stellar victory in last year’s Chicago Marathon.

Authorities said the dad-of-two had lost control of his car and veered off the road, hitting a tree. 

However, the father of the world marathon record holder called for an investigation into his son’s death, claiming four unidentified people ‘came looking for him’ days before his accident.

According to the Nation, four suspects are currently in police custody for questioning after being arrested. 

The quartet who are yet to be identified, were initially held at Kaptagat Police Station but have been transferred elsewhere for further interrogation.  

Kiptum’s father Samson Cheruiyot told Kenya’s Citizen TV: ‘There are people who came home a while back who were looking for Kiptum but they refused to identify themselves.

‘I asked them to provide identification, but they opted to leave. It was a group of four people.’