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Tag: PETROAN

  • PETROAN decries slow pace of East West road despite N33b funding

    PETROAN decries slow pace of East West road despite N33b funding

    The Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) has expressed dissatisfaction with the sluggish pace of construction on the Eleme-East West Road by Reynolds Construction Company (RCC), despite receiving N33 billion for the project.

    In a press statement on Thursday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, criticized the delays, calling for expedited action to complete the road.

    He said: “The National President of PETROAN, Dr. Billy Gillis Harry, said RCC’s slow pace of work is sabotaging President Bola Ahmed Tinubu’s efforts to ensure the smooth distribution of 

    petroleum products from the newly commissioned Port Harcourt refinery. Despite receiving N33 billion from the Federal Ministry of Works.”

    Read Also: PETROAN, refineries sign sales purchase agreements

    PETROAN, in the statement, said that about 60 retail outlets are negatively impacted by the road construction and requested adequate compensation for owners of those filling stations. 

    The Minister of Works, David Umahi, in a previous press conference, has also complained about the slow approach of RCC, leading to the issuance of a seven-day ultimatum by the Minister.

    According to the statement, thousands of petroleum trucks will be using the road to convey products from the newly 

    inaugurated Port Harcourt refinery; hence, further delay is detrimental.

    The statement reads in part: “The Eleme East-West Road is a critical route for the transportation of petroleum products, and its safety is paramount. 

    “The road’s deplorable condition poses a significant risk to trucks carrying 

    petroleum products, which could lead to catastrophic accidents and environmental disasters.

    “PETROAN is calling on President Tinubu to evaluate the ongoing contract by RCC in line with the contract timeline. This move would consolidate his renewed hope agenda by ensuring the timely completion of the Eleme East-West Road project.

    “Furthermore, PETROAN is calling on the Minister of Works, David Umahi, to fast-track the contract evaluation process and take decisive action to address the slow pace of work by RCC.”

  • PETROAN, refineries sign sales purchase agreements

    PETROAN, refineries sign sales purchase agreements

    The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) would today sign Sales Purchase Agreements (SPAs) with some refineries.

    The association disclosed this in its notice to the concerned parties yesterday.

    According to PETROAN, the parties would sign the pact in Port Harcourt, Rivers State.

    The notice reads in part: “Notice of Signing of Agreements Between PETROAN and some Refineries

    Read Also: PETROAN urges FG to privatise Port Harcourt, Warri refineries

    “This is to inform you that PETROAN will be signing a Sales Purchase Agreement (SPA) with ALLEGIANCE ENERGY AND POWER LTD, a Refined Petroleum Products Offtake and Sales Agreement with CLARIDGE PETROLEUM COMPANY LTD and a Sales Purchase Agreement (SPA) with OASIS PETROCHEMICAL PRODUCTS LTD respectively…

    “Members are encouraged to make themselves available for this eventful meeting and get first-hand information on the partnership modalities between PETROAN and these companies.

    We look forward to having you at the meeting.”

  • PETROAN seeks privatisation of Port Harcourt, Warri refineries

    PETROAN seeks privatisation of Port Harcourt, Warri refineries

    • Asks Tinubu to save 10,000 marketers business with N100b

    The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has requested the Federal Government to privatise the Port Harcourt and Warri refineries in 2025 to firms for efficiency and reduction of government spending.

    PETROAN made the request in a document it titled: “To Whom It May Concern,” which The Nation obtained in Abuja yesterday.

    The document was signed by the National President, Billy Hary; Secretary, Barr Adedibu Aderibigbe, and Public Relations Officer, Dr Joseph Obele.

    The association said, “Based on PETROAN’s observations, the following recommendations are made to ensure the effectiveness and efficiency of the downstream sector in 2025: “Privatisation of Nigerian-Owned Refineries: Privatise Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.”

    Read Also: Why we had to remove fuel subsidy, by Tinubu

    It further noted that privatisation of the plants would foster  a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.

    This, it said,  would enhance transparency and accountability.

    PETROAN also requested President Ahmed Tinubu to save the businesses of 10,000 oil and gas marketers with N100 billion intervention.

    This followed the perceived job losses due to the removal of the Premium Motor Spirit (PMS) petrol subsidy.

    The document said, “PETROAN requests for a grant of ₦100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.

     The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”

    PETROAN also urged the government to address Cross-Border smuggling of petroleum products by collaborating with neighbouring countries to strengthen border security and prevent smuggling, and also utilize digital tracking systems to monitor petroleum products from refineries to retail outlets.

    The association further asked the government to prioritise local refineries’ access to crude oil in order to boost Nigeria’s refining capacity and reduce reliance on imported petroleum products.

    According to the association,  the strategic move would have a positive impact on the country’s economy and energy security.

  • PETROAN urges FG to privatise Port Harcourt, Warri refineries

    PETROAN urges FG to privatise Port Harcourt, Warri refineries

    The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has requested the Federal Government to privatise the Port Harcourt and Warri Refineries in 2025 to firms for efficiency and reduction of government spendings.

    It made the request in a document titled: “To whom It may concern,” which The Nation obtained from Abuja on Saturday.

    The document was signed by the National President, Billy Hary; Secretary, Barr Adedibu Aderibigbe, and Public Relations Officer, Dr Joseph Obele.

    In its recommendations, the association said: “Based on PETROAN’s observations, the following recommendations are made to 

    ensure the effectiveness and efficiency of the downstream sector in 2025:. “Privatization of Nigerian-Owned Refineries: Privatize Nigerian-owned 

    refineries, such as the Warri and Kaduna refineries, to reputable private 

    companies to improve efficiency and reduce government spending.”

    It further noted that privatisation of the plants would foster  a competitive market by encouraging new entrants and promoting a level playing field to prevent 

    monopolies and ensure fair pricing.

    It said it would enhance transparency and accountability.

    PETROAN also requested President Ahmed Tinubu to save the businesses of 10,000 oil and gas marketers with N100billion intervention.

    This followed the perceived job losses due to the removal of the Premium Motor Spirit (PMS) petrol subsidy.

    The document said: “PETROAN request for a grant of ₦100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.

    ‘

    ” The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”

    PETROAN also urged the government to address cross-border smuggling of petroleum products by collaborating

    with neighbouring countries to strengthen border security and prevent 

    smuggling, and also utilize digital tracking systems to monitor petroleum 

    products from refineries to retail outlets.

    The association further asked the government to prioritise local refineries’ access to crude oil to boost Nigeria’s refining capacity and reduce reliance on imported petroleum products. 

  • NNPCL petrol price cut to spark competition – PETROAN

    NNPCL petrol price cut to spark competition – PETROAN

    The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the reduction of the Premium Motor Spirit (PMS) petrol price by the Nigerian National Petroleum Company Limited (NNPCL) will spark competition among marketers to the benefit of the consumers.

    The association’s National Public Relations Officer, Dr. Joseph Obele made this known in a press statement on Saturday.

    He said: “The Nigerian National Petroleum Company Limited (NNPCL) has taken a significant step in response to the competitive impact of deregulation in the downstream sector. 

    “The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.”

    The statement recalled that the company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per liter.

    PETROAN hailed NNPCL for responding to the call for affordable Petro prices.

    It said a document released by NNPC commercial department indicates a reduction based on regional pricing scheme as: Lagos: N899; Warri:       N970;  Oghara  N970.0; PH  N970; and Calabar  N970.

    According to the National President of PETROAN, Dr. Billy Gillis Hary, the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season.

    “The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” Dr. Hary said. “We commend NNPCL for responding to our call for affordable PMS prices.”

    The benefits of the price reduction to consumers include:- Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income, Increased economic activity: Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services, – Improved standard of living: The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.

    Hary also commended Dangote Refinery for its earlier price reduction, which he said had helped to stimulate competition in the downstream sector.

    Billy also hinted at a report submitted by PETROAN’s technical pricing team, which highlights the pros and cons of competitive pricing.

    The report notes that competitive pricing allows companies to maintain an advantage by strategically setting prices. 

    This approach helps businesses understand their market position, attract new customers, and boost sales.

    However, the report also warns that competitive pricing can lead to compromised product quality. Therefore, PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.

    The zonal leaderships of PETROAN and state Executive Councils across the 36 states of the federation have expressed optimism that the recent price reduction by NNPC will bring relief and put smiles on the faces of Nigerians at various retail outlets nationwide.

    This optimism stems from the fact that the price reduction will have a ripple effect on the economy, leading to reduced transportation costs, increased economic activity, and an improved standard of living for Nigerians. 

    The zonal chairman of Eastern zone High Chief Sunny Nkpe speaking on behalf of the Zonal and state leadership said, as the price reduction takes effect, PETROAN zonal and its state Executive Councils will continue to monitor the situation, ensuring that the benefits of the price reduction are passed on to the end-users, and that the overall downstream sector remains stable and conducive for business.

    Dr. Joseph Obele, National Public Relations Officer of PETROAN, expressed optimism that PMS prices will drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.

    Dr. Obele described the trend as a price war while he emphasized that the price reduction by Dangote Refinery and NNPCL demonstrates the benefits of competition and advocates for the immediate privatization of government-owned refineries. 

  • PETROAN, Dangote seal deal to avert petrol scarcity in yuletide

    PETROAN, Dangote seal deal to avert petrol scarcity in yuletide

    The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has reached an agreement with the Dangote Refinery and Petrochemicals to avert the scarcity of the Premium Motor Spirit (PMS) Petrol during the yuletide and beyond.

    The National President, Dr Billy Gillis Hary, on Monday 2nd December 2024 led the negotiation team of PETROAN to a fruitful strategic business meeting with the management of Dangote Refinery at the complex in Lagos.

    But the association made this known in a press statement its National Public Relations Officer, Dr. Joseph Obele issued on Friday in Abuja.

    The statement said: “PETROAN National President commended the Vice President of Dangote group & Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, for his  cooperation and strategies deployed so far to make petroleum products available to all Nigerians throughout the end of year festivities and beyond.”

    It further revealed that the Sealing of a transactional deal with Dangote Refinery was the aftermath of a successfully buyer-seller negotiation and agreement secured by PETROAN at the strategic meeting. 

    On the terms of that agreement, the statement said: “We reserved the right not to make public the business terms and conditions , even as we express optimism that the greatest beneficiaries in all shall be the general public as it concerns product availability and affordability.

    According to the statement, PETROAN is impressed with the outcome of the strategic business meeting which was evidenced with the establishment of Seller/Buyer relationship, reservation of monthly volume for PETROAN, payment modalities and a favourable rate.

    Read Also: NNPCL slashes petrol price to N1,030per litre for marketers – PETROAN

    It further said the association sealed a purchase deal with the refinery.

    The statement reads in part: “The National Headquarters of Petroleum Products Retail outlets owners Association of Nigeria (PETROAN) Abuja, has expressed confidence that the measures put in place by the association following the commencement of production at the Port Harcourt refinery and fruitful deliberations with the management of Dangote Refinery will definitely avert fuel supply shortages during and after the festive season.

    “This was due to the efforts of PETROAN distribution technical committee incharge of planning and execution of zero-fuel scarcity strategy. We are happy that Nigerians are going to travel effortlessly during this period of the year.

    “PETROAN dismisses any form of fuel scarcity concerns, caution against panic buying as it is unsafe and dangerous to stock Petroleum products at home.

    “PETROAN also call on stakeholders in the downstream sector to support the Management of NNPC Retail Ltd and Dangote Refinery to sustain petroleum products supply.

    “We hereby reassure Nigerians of PETROAN’s preparedness to ensure zero-scarcity of petroleum products during the upcoming festive season and beyond as all our retail outlets operators in all the states in Nigeria have been placed on green alert for service.”

  • NNPCL slashes petrol price to N1,030per litre for marketers – PETROAN

    NNPCL slashes petrol price to N1,030per litre for marketers – PETROAN

    • Suspends products importation plans; says PHRC is producing
    • NNPCL dismisses community spokesman’s allegations about refinery

    The Nigerian National Petroleum Company Limited (NNPCL) has slashed N15 off the N1,045 it sells a litre of Premium Motor Spirit (PMS) to  marketers, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) revealed yesterday.

    The association’s National President, Dr. Billy Harry, said at its strategic meeting and award presentation in Abuja that PETROAN was “still pressing the state-owned firm to further drag down the price.”

    “We are still hoping and pushing that it will still come down low,” Harry added.

    Dangote Refinery and Petrochemicals sells the product at N970 per litre to the marketers.

    However, the minimum a marketer can purchase from Dangote at a go is two million litres while NNPCL has no such restriction.

    The implication of this, according to Harry, is that NNPCL will sell more because “most of our members are going to be struggling to get N50 million or thereabout or even N60 million to buy products.

    “Now, that is not what is easily affordable. So, we as retail outlet owners, you can see why we are very close to NNPC.

     “Because we can go there and buy one product, sell; quickly turn it around, and then come back. But then, if we have to buy two million litres, we must go together.”

    He said NNPCL had opened its portal for marketers to start lifting products since Wednesday.

    He was optimistic that the competition in the free market operation would ultimately bring down petrol prices further.

    Read Also: JUST IN: Dangote Refinery hits IPMAN, PETROAN, reveals price of petrol per litre

    “And as I speak to you, they (NNPCL) are already programming for us on the current price,” he said, pointing out that the association has suspended its plan to import the products because of the need to patronise domestic refineries.

    Harry said: “So, we are not going to start importing if there is product available. So, we are not going to be looking for dollars to start importing when we can get a naira-dominated transaction from Dangote, from Port Harcourt Refinery, from Warri Refinery, from all the refineries in Nigeria.”

    Community’s claim on PHRC untrue, says NNPCL

    Also yesterday, NNPCL dismissed claims by a community spokesman that truck-out of Premium Motor Spirit from the Port Harcourt Refinery Company (PHRC) earlier in the week were false.

    The company’s Chief Corporate Communications Officer, Mr Olufemi Soneye, said claims by Timothy Mgere that the PMS truck-out was done at the gantry of the New Port Harcourt Refinery as against the gantry of the Old Port Harcourt Refinery betrayed  “his scant knowledge of the operations of the refinery.”

    He said: “The Old and New Port Harcourt Refineries have since been integrated with one single terminal for products load-out.

    “They share common utilities like power and storage tanks.

    “This means that storage tanks and loading gantry which he (Mgere) claimed belongs to the New Port-Harcourt Refinery can also receive products from the Old Port Harcourt Refinery.

    “The same person who claimed that the Old Port Harcourt Refinery has its own separate loading gantry from that of the New Port Harcourt Refinery further went on to contradict himself by saying that the PMS that was loaded out from the supposed loading gantry of the New Port Harcourt Refinery was “old stock” from the Old Port Harcourt Refinery.

    “So, how did the purported “old stock” move from the Old Port Harcourt Refinery to the loading gantry of the New Port Harcourt Refinery?

    “Going by the flawed argument of the so-called ‘community person’, “old PMS stock” from the Old Port Harcourt Refinery can be moved to the loading gantry of the New Port-Harcourt Refinery for show, but newly produced PMS from the Old Port-Harcourt Refinery can only be loaded at its own dedicated gantry. This is nothing but ignorance on full display!     

    “There are a number of other wild claims made by the man, one of which was that the refinery was producing 1.4 million barrels per day. The nameplate capacity of the refinery is 60,000barrels of oil per day. It is currently producing at 90 per cent throughput which translates to Straight-Run Gasoline (Naptha) blended into 1.4million litres of PMS, aside other products like diesel and kerosene.

    “We call on the general public to disregard the claims of the self-acclaimed ‘community person’ which are obviously borne out of sheer mischief and blatant display of ignorance.”

    PHRC is producing, says PETROAN

    The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and a former Aviation Minister, Chief Femi Fani-Kayode, spoke along the same line.

    Spokesman for PETROAN, Dr. Joseph Obele, said “emphatically that the Old Port Harcourt refinery is functional and producing refined Petroleum products at the moment.

    “On Tuesday 26th November 2024, The top Management of Nigerian National Petroleum Company Limited (NNPC Ltd) led by Engr Mele Kyari took stakeholders and journalists to the plant in view of having a first-hand information and to see things themselves.”

    According to him, the old Port Harcourt refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.

     This, he said, is contrary to the speculations that the revamped and celebrated Refinery is a mere blending plant and unproductive as circulated by most naysayer.

    Obele said  PETROAN has  “direct access to the plant on the authorization of management and we will encourage whoever is doubting the functional status of the plant to contact NNPC management for facility tour rather than spreading misleading information.

    On his part, Fani Kayode described the resurrection of the PH refinery as one of the most encouraging things to happen in the petroleum sector for many years and the credit for this must go to the President and the Group Chief Executive Officer of NNPC.

    But he said it was a pity that “some elements in the private sector who are new in the field are doing all they can to undermine and understate this great victory for Nigeria.”

    He added:”The oil business is not the same as selling sugar, spaghetti, cement or rice and no matter how hard you try you cannot muscle your way and create a monopoly on the sale of refined products as you did for other commodities over the years.”

    NNPC, according to him, will go from strength to strength, and once its other refineries are working as well, Nigerians will have cause to smile again.

    “Every optimistic and true lover of Nigeria’s progress and President Tinubu’s Renewed Hope Agenda must be proud of the GMD Mele Kyari.

    “His tenacity, bravery, ingenuity and forthrightness have been rewarded with this great feat. Surely this is hope renewed for Nigerians.”

  • JUST IN: Dangote Refinery hits IPMAN, PETROAN, reveals price of petrol per litre

    JUST IN: Dangote Refinery hits IPMAN, PETROAN, reveals price of petrol per litre

    Dangote Refinery has disclosed the price of its petrol, revealing that it sells petrol at N960 per litre for ships and maintains a price of N990 per litre for trucks.

    The statement follows claims from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) that they can import fuel at cheaper rates than Dangote.

    In an earlier interview, the marketers alleged they were buying fuel more affordably from abroad and called on Dangote Refinery to collaborate with stakeholders.

    In response, the refinery argued that only substandard products could be obtained at prices lower than its own.

    In a statement on Sunday night by the Group Chief Branding and Communications Officer, Anthony Chiejina, Dangote Refinery noted that it followed the pricing benchmark by the Nigerian National Petroleum Company Limited (NNPCL), adding that it went lower in pricing for selling into ships.

    It reads: “Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.

    “If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

    Read Also: Petrol: We want right conditions from Dangote – IPMAN

    “Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

    “In good faith, and in the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

    “At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

    “This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

    “While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty.”

  • PETROAN kicks against Dangote 1ml of diesel cap

    PETROAN kicks against Dangote 1ml of diesel cap

    Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) National President, Dr. Billy Harry has condemned Dangote Petroleum Refinery minimum cap of one million litres of the Automotive Gas Oil (AGO) diesel.

    The firm has reportedly notified the marketers that the refinery can only allocate a minimum of one million litres of diesel to a marketer.

    Speaking with The Nation on phone, Harry said the threshold is too high for most marketers to afford.

    He added that the banks are no longer helpful in the situation as they have refused to lend them money.

    He said: “The only condition that has been a little difficult is that Dangote low threshold of buying one million litres. One million litres of diesel at N1,200 or N1,100 is about over N1 billion.

    “That is not what every marketer has in his account. And banks are also not forthcoming with lendable funds.”

    He, however, urged the refinery to consider the capability of the stakeholders in the industry. Asked how prepared the marketers are to provide the required logistic for the 650,000mbd refinery, which has vowed to end importation of refined products, he said they are ready for the task.

    He said the ports, barges and other logistics for haulage of the product from the refinery to depots are already in place.

    He further noted that the workforce is available in Petroleum Tanker Drivers (PTD) of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) which has always ensured a smooth working relationship.

    He said: “As far as logistic is concerned, you are talking about the ports, you are talking about the barges, transport from his refinery to other depots, Port Harcourt, Calabar, and so on and so forth, we are ready for that. I am coming to discuss in an event because they have to understand the dynamics of how this works. So that when they want to set they have to consider the ability of their immediate stakeholders, which are the retail outlets owners, independent marketers, major marketers.

    “We are ready. We have our membership in thousands that are ready to work. We are working very closely with NUPENG and PTD to ensure that we have a smooth working relationship. PETRAON will do everything to make sure the Nigerian service is more efficient. That is how prepared we are.”

    Read Also: NOGASA, PETROAN to fight oil-related crimes

    Asked how much the country spends on forex for petrol importation, and how much would it save from the stoppage of importation of the product, he said Nigeria spends $2.4 billion on shipping of cargoes of petrol annually.

    “From the knowledge we have, we are bringing in approximately 200,000 metric tons. That is almost over $200million. In a year we will save about $2.4billion,” he said.

    He said the stoppage will save the country a huge amount.

    Harry, however, said it is difficult to calculate the savings since the same company also spends a lot on shipping of crude oil from the US to Nigeria.

    He said: “The question you have to ask is that Dangote also imports crude oil from America. So, how does that tally? Those are questions you need to focus on and answer.”

  • Why investors are reluctant to invest in CNG, by PETROAN

    Why investors are reluctant to invest in CNG, by PETROAN

    Investors in the energy sector are not taking advantage of the National Gas Expansion Programme (NGEP) and the Presidential Compressed Natural Gas (CNG) because investment in CNG is capital intensive.

    President, Petroleum Retail Outlet Owners of Nigeria (PETROAN), Mr. Billy Harry, explained that to fix one modest CNG station cost between $380,000 and $500,000.

    He noted that from operation, purchase and to installation of CNG in one filling station could cost about $1 million.

    Analysing the reasons for apathy for the business, he said: “One, because even during President Muhammadu Buhari ‘s tenure, to fix one CNG modest station, would be between $380,000 and $500,000.

    “And you will do the same for another station. So, at any point in time,  you are looking at operation, purchases,  installation and all of that, you are looking for $1 million in account for just one filling station.”

    Harry added that the conditionality for accessing the Central Bank of Nigeria (CBN) loan for the NEGP was too stringent.

    He said the NGEP failed owing to the fact that the Federal Ministry of Finance and the CBN refused to consider economic realities but rather based the policy on armchair financial statistics.

    “To have a daughter station and a modest station and, off course, if you have served multiple stations that price  was never accessible by the CBN loan that was programed for the NGEP. 

    Read Also: PETROAN: Pressure on us to receive cargoes<br>to adulterate petrol

    “That made the programme to fail. It means that the CBN, the government and the Ministry of Finance did not work out through reality of the business.

    “It did not just work out because the policy was based on armchair financial statistics. It doesn’t work that way,” Harry said.

    On the Presidential Initiative on CNG, the PETROAN boss was concerned that committee does not consist of the industry operators such as the marketers, transport owners, retail outlets owners and depot owners.

    He noted that on the other hand, the committee is headed by non – professionals instead of those who can practically  table and tackle the challenges.

    Harry said, “In President Bola Tinubu regime, it has now become a Presidential Committee on CNG, headed by the Chief of Staff. The concern we should express here is that we need to get this business done by professionalism and get it done by professionals. Retail outlets owners, depot owners, major marketers, the National Association of Road Transport Owners, these are directly impacted people.

    “If you have a committee working on the CNG process or CNG or LNG or PNG,  to be able to make that work, you need these people all represented in that committee.

    “If it does not have that you will already start to make errors of judgement because it is not just what you can sit down and project, there must be a practical angle to solving the issue”.