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Tag: John Ofikhenua

  • NNPC crashes cooking gas prices

    NNPC crashes cooking gas prices

    The sustained strategic intervention of the Nigerian National Petroleum Corporation (NNPC) in the efficient supply and distribution petroleum products has led to significant fall in the prices of Premium Motor Spirit (PMS), also known as petrol, and Liquefied Petroleum Gas (LPG), also known as cooking gas, nationwide.

    A national survey by Oil and Gas Forum, NNPC’s weekly TV programme, indicated a trend of drop in price for cooking gas with the average price for refilling 5kg cylinder at N2,215.96 from the former price of N2,500.00.

    The study further revealed that states with the lowest average price for the 5kg LPG refill were Kaduna and Niger at N2,000; Kogi at N2,005.00; and Oyo at N2,033.33.

    At the NNPC Mega and retail stations nationwide, a 12.5kg of cooking gas that was sold for N4,500 a few months ago is now sold for N3,800 while other retail outlets sell the same quantity for N4,000.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this disclosure in a statement on Sunday.

    The statement added that a national survey by Oil and Gas Forum, NNPC’s weekly TV programme, indicated that in the last few weeks, the price of petrol has fallen steadily from N145 per litre to between N142 and N143 per litre in some stations across the country.

    The study showed that NNPC Mega and affiliate stations across the country are selling the product for N143 per litre, while the pump price range from between N142 and N145 per litre in some major and independent marketers in Lagos, Abuja, Sokoto, Enugu, Delta and other major cities.

    One of the respondents in the survey and a manager at an independent fuel retail station in Abuja, Mohammed Abdullahi, said the station currently sells petrol at N142 per litre in line with the prevailing market situation in order to sustain the turnover of the business and to attract more motorists to the station.

    Another independent marketer in Mosimi, Emeka Ikechukwu, said the going ex-depot prices of PMS had dropped from N138 per litre in most depots to N133.28 in NNPC depots and between N130 and N131 per litre in private depots.

    However, the situation is slightly different in Aba and Umuahia in Abia State and Calabar in Cross River State where most independent fuel stations as well as major marketers selling the product at N145 per litre.

    The survey also showed a similar trend of drop in price for cooking gas with the average price for refilling 5kg cylinder at N2,215.96 from the former price of N2,500.00.

    The study further revealed that states with the lowest average price for the 5kg LPG refill were Kaduna and Niger at N2,000; Kogi at N2,005.00; and Oyo at N2,033.33.

    At the NNPC Mega and retail stations nationwide, a 12.5kg of cooking gas that was sold for N4,500 a few months ago is now sold for N3,800 while other retail outlets sell the same quantity for N4,000.

    NNPC has sustained its interventions through sustained improvement in the supply of the products and remodeling of distribution channels to address sufficiency issues across the country.

    The corporation has also stepped up the resuscitation of some of its critical pipelines and depots such as the Atlas Cove – Mosimi Depot Pipeline, Port-Harcourt Refinery – Aba Depot Pipeline, Kaduna – Kano Pipeline and the Kano Depot which have enhanced efficiency in products distribution.

    Efforts are also ongoing by the NNPC to revamp and re-commission other critical pipelines and depots across the country to further push down the prices of petroleum products for the benefit of consumers.

  • Total, NNPC sign agreement to deliver without pipelines 

    Total, NNPC sign agreement to deliver without pipelines 

    The Nigerian National Petroleum Corporation (NNPC) on Tuesday signed a Joint Venture agreement with the Greenville Oil and Gas Co. Limited for the production and distribution of Liquified Natural Gas (LNG) from Rumuji, Rivers state without pipelines to other parts of Nigeria, especially in the north.
    It is the pioneer Nigerian LNG that will distribute gas using special trucks for domestic consumption, by creating a virtual gas pipeline to supply natural gas to those regions not served or under served by physical pipelines.
    The project which stretches for about 1,000Km is said to have the capacity of creating numerous jobs for truck drivers, attendants and others.
    Speaking at the ceremony in Abuja, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, noted that the negotiation of the agreement had been on in the past three years.
    He said the agreement which would in the first instance produce 250 Standard Cubic Feet per can increase to 500SCUF per day in the long run.
    According to him, the “agreement will help us unlock undeliverable opportunities in terms of supply to power and supply entities. It will help some of the oil companies to meet up with their Direct Supply Obligations that they had earlier signed that they have been unable to execute.”
    He added that “we need to find our ways that in the absence of sufficient trucking to put pipelines in place very rapidly we needed to look for new technology.  And we had been having this conversation over the last two three years. We started first by looking at the structure in which the gas and power of NNPC was working and we set up two companies -the NGLC which is the marketing company itself and of course the NGPTC, which is supposed to deal with the infrastructural provision.”
    The minister predicated the success that led to the signing of the agreement on the calmness in the Niger Delta which will enable the company access the gas.
    He said that the pioneer gas trucked project is coming as a challenge and opportunity to other investors that have been looking for a way to access and distribute gas in the absence of pipelines.
    Continuing, he said that “this doesn’t take away the need for pipelines. We are going to continue providing pipelines. But what is there is that we no longer can wait. We can actually move in a very robust manner and to get gas up in the north.”
    Kachikwu noted that what is still needed to be done is ensure that the payments issues are dealt with and the financing is being smooth for both the producer of the gas and the individuals who take responsibility to distribute it are both adequately paid.
    The minister stressed that “I think we will be working with you as federal government agencies once we begin to deploy to places like NNPC, the Central Bank, the Senate to ensure that payment under the new system is made on time. So that there is a good financing and funding for you to do the future expansion project.
    Kachikwu said that: “The first one is 220 per day but it has the capacity to go up to 5,000 per day. So it is quite massive. So what you find is that over the next three to four years if the right finances are put in place and adequate patronage and market are created this could actual metamorphose into the avenue for deploying gas in the country.”
    He urged other investors to emulate the model especially at the centre where people can afford to pay the right kind of pricing for the supply of power.
  • Major shake-up in NNPC

    Major shake-up in NNPC

    • Roland Ewubare heads NAPIMS

    The Nigerian National Petroleum Corporation (NNPC) on Tuesday announced a major management shake-up that culminates in the appointments and redeployment across the value chain.

    The Group Managing Director of the Corporation, Dr. Maikanti Baru, told NNPC staff shortly before the announcement was made public that the new appointments would not only help to position the Corporation for the challenges ahead but would help fill the gaps created due to statutory retirements of staff. A total of 55 top management staff were affected in the exercise.

    According to a statement of the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who made the disclosure in a statement, under the new arrangement, Roland Ewubare, formerly MD of the Integrated Data Services Limited, (IDSL) moves to the National Petroleum Investment Management Services, (NAPIMS) as the new Group General Manager while Diepriye Tariah, former GGM and Senior Technical Assistant to the NNPC GMD takes over from Ewubare as MD of IDSL.

    The statement reads in part: “Malami Shehu, Executive Director Operations, of the Kaduna Refining and Petrochemical Company, KRPC, was appointed Managing Director of the Port Harcourt Refining Company, PHRC while Adewale Ladenegan, former MD of the Warri Refining and Petrochemical Company, WRPC was moved to KRPC to assume duty as MD.

    “In the same vein, Muhammed Abah, until recently, the Executive Director Operations of WRPC succeeds Ladenegan as MD of Warri Refinery.

    “With the retirement of Alh. Farouk Ahmed as the MD of the Nigerian Products Marketing Company, (NPMC), Umar
    Ajiya, former GGM incharge of Corporate Planning and Strategy, (CP&S) now assumes duty as MD of NPMC while

    “Bala Wunti, former, General Manager, Downstream, GMD’s Office takes charge as GGM CP&S.
    Other changes include: Usman Yusuf who takes over as GGM/STA to the GMD, Adeyemi Adetunji confirmed as MD NNPC Retail alongside Dr. Bola Afolabi who now functions as GGM in charge of Research and Development Division of the Corporation.

    “Also on the list is Mrs. Ahmadu-Katagum appointed GGM (Shipping) in the Downstream Autonomous Business Unit while Kallamu Abdullahi takes over as the GGM in charge of the Renewable Energy Division in the Downstream ABU.
    Dr. Shaibu Musa was promoted MD of the NNPC Medical Services Limited while Ibrahim Birma is the new GGM in charge of the Corporation’s Audit Division now renamed Governance, Risk and Compliance Division.”

  • NNPC increases gas to power by 123% 

    The Nigerian National Petroleum Corporation (NNPC) has increased daily average natural gas supply to the nation’s gas power plants by 123 per cent to 730 million standard cubic feet per day (mmscf/d).

    The Corporation, in its June 2017 Monthly Financial and Operations Report released on Tuesday, said the gas supply was for June 2017 as against 327mmscf/d in the corresponding period in 2016.

    According to the report, gas supply to power plants increased slightly by 0.13 per cent from 729mmscf/d in May 2017 to 730mmscf/d in June 2017.

    This was contained in the statement that the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued in Abuja.

    The report also indicated that nationwide petroleum products supply continued to record remarkable stability following the performance of Nigeria’s three refineries which produced between five and six million litres of Premium Motor Spirit (PMS), also known as petrol, per day in June 2017.  

    The refineries also produced between five and six million litres of Automotive Gas Oil (AGO), also known as diesel, per day in the period under review.

    “The Corporation has maintained seamless nationwide supply and distribution of petroleum products which guarantees stable products and queue-free filling stations across the nation,” the report stated.

    The report also showed that the performance of the Port Harcourt Refinery continued to improve with a boost to the midstream value chain as it inched towards sustained commercial operations.
     
    It would be recalled that the pump price of diesel crashed by 42% nationwide following strategic intervention by the Corporation in May 2017.
     
    On pipeline vandalism, the report indicated that the Corporation recorded about eighty-six (86) cases of pipeline breaks across the country in the period under review. 
     
    According to the report, out of these 86 cases, 77 were due to pipeline vandalism, which represents almost 40% increase relative to cases recorded in the previous month (May 2017). 
     
    The report added that while the Port Harcourt-Aba line recorded the highest pipeline breaches of 55 points (66%), there was also an unusual upsurge in the activities of vandal along Kaduna-Zaria line which witnessed 13 vandalized points during the period.
     
    There was also a slight decrease in national gas production compared to previous month, which stood at 227.15BCF or an average of 7,571.50 mmscfd, the report noted.
     
    This, the Corporation explained, was despite sustaining the success recorded by its enhanced crude oil evacuation and oil lifting in June 2017 following re-opening of Forcados Oil Terminal (FOT) on March 31st, 2017. 

    The NNPC further called on Nigerians to continue to support the Corporation in the area of security with a view to ensuring zero vandalism of the nation’s oil and gas infrastructures.

    The June 2017 report is the 23rd edition in the series, which seeks to sustain effective communication with the Corporation’s stakeholders in line with its commitment to becoming more accountable, responsive and transparent organisation.

  • Customs deactivate 160 TINs over fraudulent bidding

    Customs deactivate 160 TINs over fraudulent bidding

    The Nigeria Customs Service (NCS) on Tuesday told The Nation that last week, at the end of its 5th round of the ongoing e-auction bidding, it deactivated 160 Tax Identification Numbers (TINs) of fraudulent bidders.

    Speaking with our Abuja correspondent on phone, the Public Relations Officer, Mr. Joseph Attah, noted that “the 5th round was smooth because of the measures that we put into effect, They have started yielding results.

    “We have deactivated over 160 TINs due to bogus and unrealistic bidding. Those measures of reprogramming the system we had seen a better bidding process at the end of the 5th bidding.”
    He said that 353 winners have emerged from the exercise.

    According to him, at the end of the 5th round, the total amount generated from the e-auction was in excess of N52million. He added that the 6th round commenced this week Monday.

    The spokesman said that “The 5th round produced 99 winners. So, when you add it up at the end of that 5th round we had 353 winners. And we have generated over N52million. And you know of course, the 6th round now has started on Monday.”

    He said that 19 banks are now participating in the ongoing auction and that the previous challenges that were associated with the process at the beginning have now given way owing to the different measures that the NCS took to address them.

    It will be recalled that the Nigeria Customs Service Comptroller-General, Hameed Ali (rtd) had this year introduced the e-auction bidding process to contain the corruption and lack of transparency that characterized the previous analogue bidding system.

    The Controller-General said:“In the past, stakeholders had accused the service of Nepotism, short changing the government of revenue through arbitrary auction fees to be paid by allottees and sundry corruption allegation against the service”.

    Two weeks after the launch of the process, for Jaiz Bank Plc, all the other Deposit Money Banks (DMB) refused to participate in the exercise giving room to the conjecture that the e-auction was skewed to favour Muslims and northerners.

    On July 18, Ali met with 17 Chief Executive Officers of banks in his office at Abuja, accusing them of sabotaging the e-auction process.

    The bankers, however, blamed their non-participation on technical hitches and promised to hook on to the system as soon as they overcame their hurdles.

  • AuGF commends NNPC on transparency 

    AuGF commends NNPC on transparency 

    The gale of accountability and transparency pervading the operations of the Nigerian National Petroleum Corporation (NNPC), under the leadership of Dr. Maikanti Baru has received institutional endorsement with commendation from the Auditor General for the Federation, (AGF) Mr. Anthony Ayine.

    Leading a team of top management and auditors from the Office of the Auditor General for the Federation, (OAuGF) on a business visit to the NNPC Towers Abuja, the AGF said it had become imperative to acknowledge the demonstrable efforts and strides by the current NNPC Management in enshrining the virtue of probity, accountability and transparency in its operations and processes.

    The AuGF, according to the corporation in a statement on Friday, said: ‘’Let me at this juncture commend the Group Managing Director, (GMD) of NNPC, I note with delight that he assumed office in July last year but he has done quite  a number of things worthy of commendation…. Let me also note with delight that the information available to me is that the audited accounts of NNPC that were in arrears are now audited up to 31st December 2014.”

    Ayine noted that as the foremost accountability institution in the country, the OAuGF was not only delighted to note the significant changes in the Corporation but was further encouraged by the renewed assurance from the GMD of improved access to auditors from the office of the AGF during periodic checks on the books of the Corporation.

    He called for improved synergy between the OAuGF and the oil and gas industry especially in providing technical exposure and support for auditors on the beat.

    Responding, Dr. Baru said that transparency and accountability had become a way of life for management and staff of the Corporation noting that the era of unpublished or accumulated NNPC audit accounts had been confined to the history book.

    “This explains why we publish our operations and financial reports every month so that not only your office but the general public could follow the trail. I don’t think there is any government institution that has demonstrated this level of transparency,’’ Baru said.

    The GMD informed that the Corporation hopes to conclude on the 2015 audited account latest by the end of August 2017 while preparation of the 2016 audited account which began about a month ago would be concluded by the end of 2017.

    He said as an entity, the NNPC had a mandate to ensure that Nigeria reaped bountifully from the proceeds of its vast hydrocarbon resources and the Management is also willing at all times to adopt measures that would propel the realization of this noble objective.

  • NNPC signs pacts with Shell, Chevron to increase revenue by $16b

    NNPC signs pacts with Shell, Chevron to increase revenue by $16b

    Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London on Monday between the Nigerian National Petroleum Corporation (NNPC) and two of its JV partners: NNPC/Chevron Nigeria Limited (CNL) JV and NNPC/Shell Petroleum Development Company (SPDC) JV.

    The two projects are expected to generate incremental revenues of about $16billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilization.

    The agreement with Chevron would see the development of the NNPC/CNL JV Sonam Project (Project Falcon), hitherto financed through cash calls, to incremental proven and probable oil/liquids reserves of 211million barrels and proven and probable gas reserves of 1.9 trillion cubic feet within in Oil Mining Licences (OMLs) 90 and 91.

    The project is expected to begin to bear fruits in next three and six months.

    Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, said the project is envisaged to achieve an incremental peak production of about 39, 000 barrels per day of liquids and 283million standard cubic feet of gas per day (mmscf/d) of gas respectively over the life cycle of the asset.

    The NNPC Group General Manager, Public Affairs Division, Mr Ndu Ughamadu made this disclosure in a statement on Thursday.

    The Joint Venture partner, he said, had already expended $1.5billion representing 97 per cent of project completion costs, adding that the agreement would cover the remaining $780million to complete the project’s scope.

    Providing a breakdown of the expected funding requirements of the Sonam Project, Dr. Baru said $400million is to fund the development of seven wells in the Sonam field (OML 91), the Okan 30E Non-Associated Gas (NAG) well (OML 90), and associated facilities including completion of Sonam NAG Well Platform.

    The GMD added that $380million would also be required to reimburse the JV partners for the 2016 portion of the funds committed to lenders that had been cashed and paid for.

    He stated that the Sonam Project alone, on fruition, would net the Federal Government cumulative incremental earnings of $7.3billion over the project’s life.

    The agreement with SPDC, on the other hand, would facilitate the development of the NNPC/SPDC JV Project Santolina which comprised of 156 development activities across 12 OMLs (OMLs 11, 17, 23, 25, 27, 28, 32, 35, 43, 45, 46 and 79) and 30 different fields in the Niger Delta.

    The GMD said the development of the Sonam Project would be carried out in two phases, with the first phase focused on short term activities involving Oil and Gas Generation (STOGG) programme comprising 128 rigless activities and 10 workovers, while the second phase would focus on medium term activities that would involve further development of EA/EJA fields by drilling 14 new well and three workover ones.

    He said the first phase of the project is estimated to deliver incremental liquid reserves of about 202.9 million barrels of oil and 161.8 billion cubic feet on Proven and Probable (2P) basis.

    The GMD put the total third-party financing for Project Santolina at $1billion, inclusive of financing cost of which, he said, co-lending amounted to $420mm with NNPC’s portion of $850million.

    He stated that Project Santolina would generate about $9billion of incremental revenue to the Federation Account over the project’s life cycle and a Net Profit Value (NPV) of $5.2billion over the loan life at 8 per cent discount rate.

    Baru explained that NNPC’s objectives in securing third-party financing for the two sets of projects aligned with government’s aspiration to increase reserves and crude oil and gas production as well as monetize the nation’s enormous gas resources.

    He emphasized that the financing option underscored the realization of one of the Corporation’s 12 Business Focus Areas (BUFAs) that is: Increasing crude oil and gas reserves and production to support government’s Seven Big Wins aspiration.

    In his presentation, Mr. Andy Brown, Shell Global Upstream Director, stated that the alternative funding arrangement was an innovative financing plan that would enable SPDC commence exploration activities hitherto stalled due to funding challenges.

    Mr. Jeffrey Ewing, Chairman and Managing Director of CNL, said Chevron Nigeria Limited was committed to supporting Nigeria’s aspirations of sustaining oil and gas production through innovative strategies as typified by the alternative financing arrangements over which agreement was executed.

    Similar sentiments were expressed by the consortium of banks involved in the project namely Access Bank, Standard Chartered Bank, Union Bank and United Bank for Africa, UBA and some foreign financial institutions.

  • Nigeria to extend gas pipeline to Côte d’ Ivoire

    Nigeria to extend gas pipeline to Côte d’ Ivoire

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said the West African Gas Pipeline (WAGP) would be extended from Ghana to Cote d’ Ivoire as part of the Federal Government West African energy integration policy.
    The Group Managing Director of the NNPC, Dr. Maikanti Baru, made this disclosure on  while receiving a delegation from Cote d’Ivoire at the NNPC Towers in Abuja.
    Represented by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed, the GMD stated that the extension of WAGP to Cote d’Ivoire would facilitate easy transmission of gas within the West African sub-region.
    He noted that the visit would afford the NNPC and Cote d’Ivoire the opportunity to open a new vista for further bilateral discussion which would lead to the growth and development of the oil and gas sector.
    The GMD said Nigeria and indeed the NNPC has being into the business of oil and gas exploration and production for over fifty years, stressing that the interface would enable the NNPC to share its vast experiences in the sector with the delegation.
    The Group General Manager, Group Public Affairs Division of the corporation, Mr. Ndu Ughamadu that disclosed this in a statement quoted Baru as saying that : “Petroleum exploration and production dates back to over fifty years in Nigeria and a lot of experiences in technology and personnel management have been acquired. We are ready to share our experiences with you so as to help you to avoid the mistakes we made in the past.”
    He expressed the readiness of the NNPC to develop the capacity of the delegation, adding that the NNPC was aware of the long history of refining in Cote d’ Ivoire.  
    Earlier, leader of the Ivoirian delegation and Deputy Director, Production, of Ministry of Petroleum, Cote d’ Ivoire, Mr. Patrick Marshal, said the visit was to learn from Nigeria some of its best practices in personnel management, exploration and production in the oil and gas industry.
    Highpoint of the visit was a technical session on the mode of operations of the NNPC in the petroleum sector.
  • AEDC raises panel on electrical accident in Niger

    AEDC raises panel on electrical accident in Niger

    The Abuja Electricity Distribution Company (AEDC) on Tuesday raised a six-man Investigative Team set up to investigate the circumstances surrounding the electrical accident, which occurred in Angwan Biri, a neighbourhood of Minna, the Niger State capital.

    A press statement issued by Ahmed Shekarau, Head, Public Relations & Media of the Company said a preliminary report on the incident showed that the binding wire of an 11Kv line got loose due to a windy condition and came into contact with the 415V red phase cable, thus sending high voltage which was alleged to have led to the unfortunate death of two people, while four others sustained injuries.

    Inaugurating the panel in Abuja, the Director, Risk and Compliance, Engr. Collins Chabuka also used the opportunity to dismiss insinuations that 49 houses were affected in the incident as “false”, and cautioned the media and other members of the public against misinformation.

    Chabuka said the decision of the Company to set up a probe panel was in line with the internal AEDC Incident Reporting and Investigation Procedure Guidelines and industry best practice.

    “It is AEDC’s internal Health and Safety Policy requirements that all accidents are investigated by independent internal persons with an extensive industry background, competence and knowledge. The purpose of the investigation is to highlight the shortcomings that may have led to the incident and also to recommend industry best practice and remedial measures to prevent a recurrence,” he said.

    Describing the incident as “most unfortunate”, the AEDC Director, said that the Company had complied with regulatory requirements by officially notifying the Nigerian Electricity Regulatory Commission (NERC) and the Nigeria Electricity Management Services Agency (NEMSA) of the accident.

    The AEDC director, while commiserating with the family of the deceased and other members of the Angwan Biri Community, also expressed the company’s sympathy with the injured, three of whom have been treated and discharged from the hospital. He assured that the AEDC is taking over treatment of the lone victim who is still receiving treatment in hospital.

    The investigative panel is being chaired by Engineer Mohammed Ainoko Sule, an experienced Nigerian Electricity Industry professional with over 26 years of experience in Distribution Network Operations, Maintenance and Protection System.

    Other members of the team are the Head of Health and Safety, Engineer Dirisu Biodun; the Regional Head, Human Resources, Malam Sani Ibrahim; the Team Lead, Legal Services, Niger Region, Barr. Aminu Ubandoma; the Regional Corporate Communications Officer, Adamu Mohammed and a Health and Safety Officer, Mr. Hisham Kamar.

    The Panel has two weeks to submit its report.

  • IPMAN urges EFCC to curb corruption in refineries, depots

    IPMAN urges EFCC to curb corruption in refineries, depots

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Monday urged the Economic and Financial Crimes Commission (EFCC) to curb corruption in the sale of petroleum products in the refineries and depots across the country.

    Speaking with The Nation on phone, the IPMAN National Vice President, Alhaji Abubakar Maigandi explained that sharp practices in the allocation and loading of the products was still a major threat to the free flow of fuel that this administration advocates.

    He said that “you know up till now there is corruption in those NNPC depots, you have to give them money before you load in any of them Warri, Port Harcourt and Kaduna. All the three refineries.”

    The IPMAN National Vice President, who commended the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru on his recent visit to the EFCC, asked him to take advantage of the relationship to tackle the corruption menace in the oil downstream industry.

    He, however, explained that only NNPC is importing products and it sells them at a lower rate than the independent marketers, which is accountable for the price disparity.

    He added that some independent marketers have however followed suit to lower their pump prices because they seek high turnover. The situation, he said has made the market highly competitive to the benefit of the consumers.

    He noted that marketers were not accessing kerosene directly from NNPC, stressing that the middlemen are responsible for the additional cost in securing the kerosene.

    His words: “The managing director, the other time visited Magu. So, all what they have said is good, if they can go and do it in the right way,  definitely the Kerosene price will crash. Now only NNPC is bringing kerosene because there is a subsidy, so that subsidy because the  NNPC is bringing their own, they sell it at a lower rate to the marketers.

    “So, marketers are not able to import it because of the rate NNPC is selling because they produce, so they sell it at a lower rate.

    They are selling at a lower rate but when marketers come, it will become at a higher rate. So that is the major problem that we are having now, the government is giving it at a lower rate but the marketers can not get it at that rate.

    “Another unnecessary cost, which is not going to the government’s pocket, if the marketers were getting it direct, the way government said they should sell, then definitely by now the kerosene will not pass N150 or 160 highest, in the filling station.

    “Let Magu work with that the Managing Director, since he has gone there to meet him to assist him, let him assist him to eradicate the corruption.”