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Trending Topics in The Oil & Gas Industry

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Due to rising global crude oil prices, the landing cost of Premium Motor Spirit (petrol) imported into the country has risen to a new high of N249.42 per litre. The higher subsidy is due to a further increase in the landing cost of fuel, as the pump price of the commodity remains stable at N162-N165 per litre.

Petrol subsidies, which were eliminated in March 2020, reappeared earlier this year as the government kept the product’s pump price fixed since December despite rising global oil costs.

Since the subsidy returned, the Nigerian National Petroleum Corporation which has been the country’s sole importer of fuel in recent years, has been footing the burden.

While marketers have continued to emphasize the need of allowing market forces to set the price of gasoline at the pump and eliminating subsidies, it is unclear whether conversations between the Federal Government and labor unions will result in price deregulation.

According to data compiled on the 8th August 2021, the landing cost of gasoline increased to N249.42 per litre on the 30th of July from N240.17 per litre on the 25th of June.

The Group General Manager, Group Public Affairs Division NNPC, Dr. Kennie Obateru said on the 8th of August 2021 that the company was not comfortable with subsidizing gasoline, and that it would like to recoup its costs and even earn a profit. He said the NNPC was waiting for the Federal Government to strike an amicable deal with labor and give the business additional directives. He further stated that the sooner it is resolved, the better for us, adding that the national oil corporation would continue to provide energy sufficiency in the country.

Another trending topic is how the Federal Government Approves $2.7 Billion For NNPC’s 20% Share in Dangote Refinery, The Nigerian National Petroleum Corporation, NNPC, has received authorization from the federal government to invest $2.76 billion in Dangote Refinery as a 20 percent minority ownership share.

Minister of State for Petroleum Resources Timipre Sylva made the announcement at the end of the weekly FEC meeting in Abuja on Wednesday. The Nigerian National Petroleum Corporation (NNPC) has stated that it intends to invest in at least six private refinery projects.

Instead of utilizing federation funds, he said, NNPC would borrow to acquire the equity stake in order to provide results and dividends for Nigeria. The company is thought to be in talks with the African Export-Import Bank (Afreximbank) about obtaining a loan to purchase the stock.

Last month, Sylva announced that the federal government had decided to purchase shares in private refineries in order to avoid fuel shortages. An effect on the pricing of Petroleum products on this is almost non-existing, this is due to the fact that because the NNPC becoming a stakeholder in Dangote refinery means they ought to serve as a check/regulatory view on the private venture.

The presence of the National Oil Corporation will serve public and government interest in Dangote refinery; therefore, one expects checks and balances with regards to the firm being a single arbiter on prices of AGO/PMS/DPK.

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  1. Kyle editor

    Wow the price of petrol is getting high, lord save this country

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