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Tag: Petroleum Products Pricing Regulatory Agency (PPPRA)

  • Petrol pump price remains N145 per litre – PPPRA

    The Executive Secretary Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Abdulkadir Saidu on Tuesday refuted the growing speculation on the purported imminent price increase in the pump price of Premium Motor Spirit (Petrol), noting that the retail price of Premium Motor Spirit (Petrol) remains at the subsisting price cap of N145 per litre.

    According to him, in a statement issued to reporters in Abuja,  marketers should ensure that there is no price distortion in their respective retail outlets. 

    The PPPRA, he said, shall continue to carry out its oversight function of monitoring exercise in depots and in all the filling stations across the country, to ensure adherence to the regulated price and to nib in the bud other forms of sharp practices at retail outlets. 

    He specifically warned that adequate sanctions await any erring filling stations found wanting.

    Read Also: PPPRA vows to sanction profiteers

    The Executive Secretary commended the petroleum oil marketers in the country for embracing dialogue with Federal Government to resolve the issues arising from payment of the outstanding fuel subsidy claims, noting that embarking on strike is not always the best option to address any industrial dispute, irrespective of the circumstances because  the multiplier effects is always too much to bear.

    The PPPRA boss therefore appealed to the leadership of the Oil Marketers Association to cooperate with the Federal Government to find a workable solution to the issue emanating from the payment of subsidy arears. He further assured the oil marketers of PPPRA’s continuous support, cooperation and collaboration at ensuring a conducive industrial climate where the best of the oil and gas sector could be showcased.

    Mr. Saidu also assured Nigerians of PPPRA total commitment to service delivery and uninterrupted petroleum products supply and distribution especially during this festive period and beyond. 

    He therefore, appealed to motorists and other PMS consumers to desist from panic-buying, as PPPRA is working hard with other Agencies of government to ensure that there is no short fall in the supply and distribution of petroleum products nationwide.

  • Forex scarcity: Marketers bicker over kerosene import

    Fuel marketers are finding it difficult to import Dual Purpose Kerosene (DPK), two years after the Federal Government removed subsidy on the product.

    The marketers, which include members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association (DAPPMAN), said they stayed away from the importation because of the outstanding subsidy arrears being owed by the government.

    The marketers said the issue was borne out of scarcity of foreign exchange (forex), adding that access to forex has been difficult.

    They said it was becoming impossible to meet the demands of the consumers who use the product for cooking.

    IPMAN’s National Operations Controller, Mr. Mike Osatuyi, said members of the association were not importing DPK, but insisted that the DPK market should be fully deregulated.

    According to him, any IPMAN member could bring in DPK after getting the approvals from the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA).

    Osatuyi said: “We will start importing DPK when the coast is clear. By this, I mean when we are through with our internal reorganisation. But I must say the demand for the product is dropping as people are switching over to Liquefied Petroleum Gas (LPG).”Because we believe the market is fully deregulated, I don’t think we will have any issue with foreign exchange when it is time to import.”

    Read Also: Kerosene explosion kills siblings, injures two others

    According to him, the landing cost of fuel imported into the country has increased relative to rise in the price of crude oil in the international market, adding that many marketers could not get enough to buy the product from the refiners abroad.

    Also, DAPPMAN’s Executive Secretary, Mr. Femi Adewole, said operators in the downstream sub-sector were worst hit, as they grapple with funds shortage.

    He said marketers were unable to get enough foreign exchange for importation of fuel, especially kerosene.

    He said failure of the marketers to access funds from banks coupled  and the government’s inability to pay their subsidies made it difficult for them to import kerosene.

    It would be recalled that the Nigerian National Petroleum Corporation (NNPC), the only approved firm to import fuel, sells DPK to marketers at an ex-depot price of N190 per litre. This implies that marketers would pay more because of landing cost, if they are to import.

    By this,  a near monopoly of the product has been created by the national oil company, a development, which has further compounded the problems of many Nigerians that use kerosene, which is the most commonly used fuel in the country.

    The issue has left many household users to pay as much as N350 per litre to get the product for use.

     

  • No plans to increase petrol price – NNPC

    No plans to increase petrol price – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has reiterated that it has no plans to increase the pump price of petrol.

    NNPC made the denial in a statement by Mr Ndu ughamadu, its Group General Manager, Group Public Affairs Division.

    The statement explained that the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre would not lead to an increase in the pump price.

    ”There is no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

    ”The rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same templat.”

    Bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country.

    Lightering expenses involve charges for moving products to depot area from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

    ”What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders.

    ”So what the Petroleum Products Pricing Regulatory Agency, PPPRA, did was to take N1 from lightering expenses and add same to the bridging allowance.

    ”That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ it said.

    On the product supply, thr statement said as at Wednesday, the country had 1.3 billion litres of petrol which translated to an inventory of 36 days.

    “What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days.’’

    It noted that the supply availability was bolstered with the production of petrol from the three refineries in Port Harcourt, Warri and Kaduna.

    “There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries.

    ”we have informed the Department of Petroleum Resources to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

    It reiterated the readiness of the NNPC Management, under the leadership of Dr Maikanti Baru, to sustain the existing cordial relations among the NNPC, the leadership of the downstream industry unions and other stakeholders.

    It also said the DPR had been alerted to sanction fuel station owners who engageD in hoarding or charged consumers above the approved pump price of petrol.

    There had been fears that the pump price of petrol would increase following the increase in bridging costs to appease tanker drivers who went on strike to demand better working conditions.

  • Minister says NNPC wrong on petrol price hike

    Minister says NNPC wrong on petrol price hike

    The Minister of State for Petroleum, Dr Ibe Kachikwu, says the recent N4 increase in the price of petrol in Nigerian National Petroleum Corporation (NNPC) filling stations, is wrong.

    Kachikwu said this after receiving an award at an event organised by the Petroleum Products Pricing Regulatory Agency (PPPRA) in Abuja on Sunday.

    NNPC had been selling fuel at N141 but on Thursday, November 3 increased it by N4 to the government benchmark of N145.

    ”It is obviously humbling and too early in the day to receive an award and to be recognised so soon in some of the things we are trying to do. It is humbling, I thank them very much.

    ”First, I am not aware that the NNPC has increased the price. I need to look into that. It is a bit of surprise for me because there are processes in doing this if they have done that, it means they are doing it wrongly.

    ”Let me find out what the facts are,” he told newsmen.

    Kachikwu said the increase could be as a result of foreign exchange differentiation.

    He said there were areas within government controlled aspects like payments to the Ministry of Transport and the Nigerian Ports Authority that were foreign currency denominated.

    ”Having said that, the reality is that what we did at the point where we did some liberalisation, was to enable the free market float the price.

    ”Obviously, as you look at foreign exchange differentiations and all that, it would impact. The worst thing you could do is to go back to an era where we basically were fixing prices.

    ”What we ought to be doing was watching the prices, making sure that they are not taking advantage of the common man; making sure that the template is respected.

    ”One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates.”

    He, however, promised to discuss with industry operators.

    The minister said: ”those who are investing must be able to predict the pricing methodologies, the pricing consequences and the actions, to be able to justify their investments.

    ”At the end of the day, I think PPPRA is the one that has the authority to say it is time the template justified some level of movement.

    ”Otherwise, you have a crisis of individual decisions on pricing,” he said.

    On the issue of insecurity in the Niger Delta, Kachikwu assured that President Muhammad Buhari was committed to finding lasting peace in that region.

  • Why kerosene is above pump price – IPMAN

    Why kerosene is above pump price – IPMAN

    …Lack of deregulation delays investment in refinery

     

    The National Vice President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi Dankigari Wednesday explained that marketers were selling the Dual Purpose Kerosene (DPK) above pump price because they could not access it at the official pump price.

    He revealed that corrupt practices still characterized its sale because the product is still subsidized.

    According to him, the Petroleum Products Pricing Regulatory Agency (PPPRA) pegged the price of kerosene for N135 per litre but marketers could not get it directly at the price unless they cut-corner securing it at N160 or N170 per litre.

    He said the scenario was accountable for the sale of kerosene at N180 per litre.

    Speaking with The Nation at Abuja, he said: “Let government deregulate that PMS and DPK because there is still some element of corruption in the sale of kerosene. I seek the deregulation of the price of kerosene because of the difficulties in accessing it.

    “Masses are not enjoying it and we marketers are not enjoying it because even when you go to any government depot that you want to load DPK now, you cannot load it at the government stipulated rate until you give them money before you can load it. The government’s price is N135 but you cannot get it. You can only come to town and get it for N160 and N170. That is why you see marketers selling it at N180 per liter.”

    Dankigari noted that IPMAN was yet to kick-start the building of its proposed modular refineries because the Federal Government was yet to deregulate the price.

    He noted that had government deregulated the prices of the Premium Motor Spirit (PMS) and Dual Purpose Kerosene (DPK) as IPMAN would have approached its foreign partners for investment in the projects.

    According to him, building modular refineries is a gigantic project that an individual could hardly undertake without the involvement of foreign investors.

    He said: “Up to the present date, the PMS and DPK are not completely deregulated. And a project like this an individual cannot sponsor it. We will have to bring in foreign investors. And supposing the DPK and PMS are completely deregulated our foreign investors are ready to bring the money so that we can continue the business.”

    Dankigari, who urged the government to deregulate the pump prices of petrol and kerosene, noted that its members cannot import the products because of the devaluation of Naira which affected access to foreign exchange.

    Citing an example of the benefits of full deregulation, he explained that marketers were importing diesel because government had deregulated the product.

    He said: “We are importing diesel. What we are not importing is kerosene and DPK because of the present change in the value of Naira to dollar. We cannot go and import because of the rate. The government rate of kerosene is N145 per liter and PMS the government rate is N145. We can import diesel because of the liberalization.

    “There is no subsidy in diesel therefore if you import, you can add your margin and sell. The market of diesel is good as most of our marketers are selling it in their pump at the rate of N180 to N190 per litre.”

    The National Vice Chairman said that the people can now access petrol because of the removal of subsidy which brought the pump price to N145 per liter.

    He said the forces of demand and supply have reduced the PMS price in most independent petrol stations across the country.

    His words: “The sale of PMS is good because there is availability of diesel, PMS and DPK. Since there is availability of products our staff are busy selling ice. A.A. Rano is selling at the rate of N141, Garima in Kubwa we selling at the rate of N142, Azman and the rest of them are selling at the rate of N142.”

    Continuing, he said: “We thank God that some government refineries have started functioning. Port Harcourt and Kaduna Refineries are now functioning. So they are assisting in terms of supply.”

  • PPPRA considers tax on petroleum products

    PPPRA considers tax on petroleum products

    The Petroleum Products Pricing Regulatory Agency (PPPRA) says that taxation of petroleum products like fuel, diesel, kerosene and gas holds huge revenue potential for Nigeria.

    This is contained in a report PPRA made available to the Ministry of Finance and obtained by the News Agency of Nigeria (NAN) at the conclusion of the two-day National Revenue Retreat in Kano.

    According to the Report, PPPRA says the introduction of taxes on petroleum products will supplement the revenue lost due to the fall of oil prices at the international market.

    It said the revenue potential from taxation of petroleum products was enormous, given the average national daily consumption of the products.

    The report from PPPRA showed that the average national daily consumption of fuel was 45 million barrel, diesel nine million barrel and aviation fuel, 1.5 million barrel.

    The report revealed that there were three different taxes that could be charged which the PPRA’s pricing template did not currently accommodate.

    These are Highway Maintenance, Government Tax, Import Tax and Fuel Tax.

    “Fall in government’s revenue from oil sale receipts and budget deficits in the face of compelling demand has made it imperative that the nation begins to examine the next step in the petroleum downstream business in Nigeria.

    “Deregulation remains the key to achieving a self-sustaining downstream sector as well as the stimulation of the economic growth and social wellbeing of the populace.

    “Environmental tax, consumption tax, fuel tax, VAT, Import and Excise tax, when included in the final pricing of petroleum products provides opportunities for petroleum products to provide direct funds for other sectors,” it said.

    Also, PPPRA made available to the government, the option of privatisation of refineries as another way for revenue generation.

    It also suggested that the Downstream Logistics Facilities should also be privatised.

  • DPR, PPMC, PPPRA join PENGASSAN to down tool

    DPR, PPMC, PPPRA join PENGASSAN to down tool

    Sequel to the memo to all chairmen and secretaries in the four zones and branches on the planned shutdown of the operations and activities in the oil and gas industry by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), other members such as Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA), has signified their plans to also join the strike.

    In a press statement signed by the National Public Relation Office , PENGASSAN, Comrade Emmanuel Ojugbana, members on Tuesday, met

    met in all the zones to fine-tune the strategies and modalities for the strike .

    He said “In the meeting, the gradual method of shutdown was critical examined and adopted by the members.

    “The action, which will cripple all activities and operations in the oil and gas sector, will affect all the sub sectors as our members in the Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalisation Fund (Monitoring Board) PEF (MB), Pipelines and Products Marketing Company (PPMC), National Petroleum Investment Management Services (NAPIMS), oil majors, labour and contract services companies, and petroleum products marketing companies will join in the action”.

    He  appeal for understanding of all Nigerians and operators that will be impacted by the action, saying that the industrial action is critical to the survival of the oil and gas industry, which according to him,  currently is the mainstay of the nation’s economy.

    Speaking with The Nation,  the Rivers State Chairman of the Trade Union Congress, TUC, and former National Industrial Relations Officer of PENGASSAN, Chika Onuegbu, said all branches of the union were on high alert waiting for the directive of the national executives.

    Comrade Onuegbu said: PENGASSAN and its members have been facing challenges recently due to the mass sack of its members by various oil and gas companies and that companies have been facing serious challenges due to slump in oil prices, militant attacks.

    He added that the Federal Government is owing the JV partners about 7 billion US Dollars piled up from the indebtedness of the previous administrations, which was about 5 billion Dollars before it racked up to about 7 billion as at today.

    PENGASSAN, on Monday, directed its members to prepare for strike from Thursday over some unresolved industry issues with the Federal Government.

    According to the statement from PENGASSAN,  the association tried to engage the Federal Government on May 24,, 2016, which was inconclusive. The engagement was later fixed for June 23, 2016, which did not take place and again of June 30, 2016 which was unceremoniously cancelled with no new date given.

  • PPPRA responsible for fuel scarcity, say Reps

    PPPRA responsible for fuel scarcity, say Reps

    • To investigate N39.6b mdgs funds

    The House of Representatives has blamed the Petroleum Products Pricing Regulatory Agency (PPPRA) for contributing to the persistent fuel scarcity in parts of the country by its slow payment of claims to oil marketers.

    The lawmakers accused the agency of being too slow in processing payments to suppliers. It also stated that oil theft has contributed to the scarcity currently spreading round the country.

    Chairman, House Committee on Petroleum Resources (Downstream), Dakuku Peterside, said the PPPRA could not absolve itself from the recurring fuel scarcity because the agency has no issues with release of its funds from the Federal Ministry of Finance.

    The Committee, during its preliminary status report on the level of implementation of the 2012 budget of Ministries, Departments and Agencies (MDA) in the petroleum downstream sector, met with the agency, Petroleum Equalisation Fund (PEF) and the Petroleum Training Institute (PTI) over the weekend.

    He said: “The legislative arm of government is putting the interest of Nigerians first before any other interest, whether we are rightly understood or not. We must find a relationship between the fact that funds are released to your MDA and that the Nigerian people are beginning to feel the impact of budgetary provisions.

    “All the fund PPPRA asked for has been released, yet we still have long queues everywhere because marketers are not being paid. It is taking a longer time to verify claims.

    “Our pipelines are permanently under threat by vandals and oil thieves, and it has affected the supply of petroleum products to various depots and by implication, fuel stations.”

    While he decried poor fund releases to PTI which he noted has led to cases of several capital projects being abandoned, “PTI Warri has not performed very well,” he lamented.

    “They are in the neighborhood of 45 per cent in terms of releases and implementation of the 2012 budget. Theirs appear to be very challenging because they have a lot of projects that are getting to be abandoned.

    Meanwhile, the House Committee on Millennium Development Goals, MDG, wou;d this week embark on fact finding mission to states to ascertain the extent to which the 39.6 counterpart funding allocated federal and states governments, in the 2011 budget was spent on poverty alleviation, health, environment control and educational programmes that are pro- poor under the MDG.

    The House Committee Chairman on MDG, Ado Alhassan Doguwa, in Kano State, said those found wanting in the supervision process will be dealt with in accordance with the constitution.

    He explained that N550 million was given to each of the 36 states in the 2011 budget under the Conditional Grant Scheme (CGS) by the Federal Government and they were expected to provide an equivalent of that amount as counterpart funding for projects jointly pursued by the two tiers of government under the MDGs.

    He maintained that the money which is part of the annual budget of $1 billion development debt relief fund granted to the country in 2003 by the Paris club, is usually given to the state governments because they are close to the people, adding that the same window has been provided in the 2012 annual budget.

    For 2012, Doguwa stated that the House of Representatives, using the Club 360, which denotes each of the 360 elected members of the house, has been allocated N30 million to execute projects that will directly have impact on the poor.”