Business
PENGASSAN Demands Transparent Pump Price Template From NMDPRA
“It is the function of the regulator to ensure that Nigerians are not exploited,” he said.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a transparent pump pricing template.
President of the union, Festus Osifo, made the call at a world news conference in Abuja on Monday.
Mr Osifo said the call became necessary seeing that petroleum marketers have continued to exploit Nigerians through inflated fuel prices even with the decrease in the price of crude oil.
According to him, at the time crude oil was being sold at 60 dollars per barrel, petrol pump prices remained high at between N850 and N900 per litre, leaving consumers at a loss.
“The unjustifiable pricing is due to NMDPRA not being able to carry out its oversight duties effectively.
“It is the function of the regulator to ensure that Nigerians are not exploited.
“So we call on NMDPRA to have a platform where they can publish what the price ranges should be.
“So, we call on them to be allowed to carry out that responsibility. We call on them to do everything possible to ensure that Nigerians are not exploited.
“If this trend continues, it means that if the crude price comes down to 50 dollars per barrel, we will not see appreciable gains,” he said.
He praised the federal government signing the Executive Order on the upstream oil and gas industry especially as it relates to the need for companies to reduce the cost of operations.
“One of the challenges affecting us today in the Nigerian oil and gas industry is that the amount upstream companies spend in protecting their facilities, both on land, in the sea, shallow waters, deep waters, and others, is quite prohibitive.
“For one installation, you have a minimum of three or four security vessels. You then have to pay for them on a daily basis.
“You pay for the crew on a daily basis. You have to fuel them on a daily basis. Whereas in other countries, it is not like that,” he lamented.
Mr Osifo identified the above mentioned situation as one of the primary reasons international oil companies (IOCs) have been exiting Nigeria.
While speaking on the persistent failure of Nigeria’s refineries to operate effectively, he reiterated the call on the federal government to adopt PENGASSAN’s recommendations made 15 years ago.
According to him, the recommendations of the NLNG model, where government holds 49 per cent and private investors hold 51 per cent should be adopted.
“We all understand the politics that comes in when it comes to national assets management.
“That is why in the past 15 years or more, we have called on the government consistently to apply the NLNG model in the management of the refineries because the model works,” he said.
He also explained that the union had reached a resolution with Sterling Oil Company following disputes over expatriate staff hiring practices.
Gazettengr.com
The cost of importing petrol into Nigeria has dropped sharply following the recent decline in global crude oil prices, creating fresh competition for local refiners, including the $20 billion Dangote Refinery.
New data released by the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen to N1,117 per litre.
The figure is now significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, leaving a difference of N133 per litre.
The development comes days after the mega refinery reduced its ex-depot petrol price from N1,275 to N1,250 per litre in response to changing market conditions.
The latest MEMAN pricing template suggests that fuel importers may now enjoy a competitive edge over domestic refiners as international crude prices continue to soften. Aside from petrol, the landing costs of other petroleum products also recorded notable declines.
According to the data, diesel landing cost dropped to N1,470 per litre, compared to Dangote Refinery’s price of N1,700 per litre. Aviation Turbine Kerosene (ATK), commonly known as aviation fuel, also fell to N1,426 per litre, while Dangote’s price remains N1,650 per litre.
MEMAN estimated the exchange rate for fuel imports at N1,366.85 per dollar, reflecting the prevailing official foreign exchange rate at the time of the calculation.
Some filling stations along the Lagos-Ibadan Expressway and in other locations across Lagos and Ogun states have reduced petrol prices below N1,300 per litre.
This follows a price cut announced by the Dangote Petroleum Refinery on Sunday.
The refinery adjusted its ex-depot gantry price of petrol down to N1,250 per litre from N1,275 per litre, while also slashing the price of diesel to N1,700 per litre from N1,800 per litre.
According to Dangote officials, the price review reflects a recent decline in global oil prices and reinforces the company’s commitment to making refined products more affordable while providing cost relief to Nigerian consumers and businesses.
Following the announcement, observations across the Mowe/Ibafo axis of the Lagos-Ibadan Expressway in Ogun State showed that several independent marketers immediately adjusted their pumps. For instance, MRS filling stations reduced their petrol pump price to N1,286 per litre, NIPCO and Heyden retailed the product at N1,290 per litre, and SGR adjusted its price to N1,297 per litre.
Reductions were also recorded in the diesel market, with many filling stations dropping their prices to N1,800 per litre from the previous N1,900 per litre.
Despite these downward adjustments, many retail outlets still sell petrol above the N1,300 mark. Outlets operated by the Nigerian National Petroleum Company Limited (NNPC) in Ibafo adjusted their pumps to N1,305 per litre, while Mobil and Asharami sold the product at N1,310 and N1,320 per litre, respectively.
The overall price drop comes after a prolonged period of high fuel costs in Nigeria, which saw petrol skyrocket from N830 per litre to over N1,300 after global crude oil climbed past $115 per barrel due to tensions between the United States and Iran.
Barely 24 hours after announcing a reduction in the price of premium motor spirit (PMS), commonly known as petrol, Dangote Refinery has adjusted its ex-depot price upward, joining several other fuel depot operators in responding to renewed volatility in the global oil market.
The latest development comes after the refinery had cut petrol prices twice within two days, lowering its ex-depot rate from N1,275 per litre to N1,250 per litre.
However, fresh market data now indicates a reversal of that trend as rising crude oil prices continue to influence domestic fuel pricing.
Industry observers attribute the latest increase to growing uncertainty in the international energy market, particularly concerns surrounding the Strait of Hormuz, a critical shipping route for global oil supplies.
Data from PetroleumPriceNG shows that Dangote Refinery increased its petrol price by 0.46 per cent to N1,256 per litre, up from N1,250 per litre announced earlier.
The refinery’s adjustment was mirrored by several major depot operators across the country. According to the data, AIPEC raised its petrol price to N1,252 per litre, while Ardova also fixed its rate at N1,252 per litre. Bulk Strategic and Liquid Bulk both increased their prices to N1,285 per litre.
The coordinated adjustments reflect growing concerns among marketers and depot operators over the rising cost of crude oil and the need to manage pricing risks.
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