Dailyreport
IPMAN wants to see more petrol prices drop
Over 23 million barrels of oil are traded as civil societies attack the cabal.IPMAN wants to see more petrol prices drop
A group called the Independent Petroleum Marketers Association of Nigeria wants the price of petrol all over the country to go down.
The group asked the Dangote refinery to think about lowering its ex-depot price from N970 per litre, since the price of bringing gasoline into Nigeria is now thought to be N900.28 per litre.
Present at a meeting of the Federal Executive Council on July 29, President Bola Tinubu suggested that crude oil be sold to nearby refineries in naira.
Tinubu wanted to sell crude to Dangote and other refineries in the local currency. The FEC agreed with this plan.
The FEC agreed that the 450,000 barrels meant for domestic use should be sold to Nigerian refineries in naira, with the Dangote refinery serving as a model.
It also agreed to a trial period of six months while the Technical Subcommittee on Domestic Sales of Crude Oil in Local Currency looked into the matter further.
The committee had said, “From October 1, NNPC will start sending about 385,000 barrels of crude oil per day to the Dangote refinery, and the company will be paid in naira.”
This means that NNPC will send about 11.5 million barrels of crude oil to the Dangote refinery every month, or more than 23 million barrels every two months.
But people who knew about the local crude sale deal told our reporters on Saturday that it was still going on, even though they didn’t know how much crude was traded during that time.
A source said, “There’s no news that says otherwise, so the deal is still going through.” You would have seen a statement from the people involved or the committee in charge saying that the deal was no longer working if it had been put on hold or ended. It means that the deal is still going on if there is no statement.
The Nigerian National Petroleum Company Limited and the Dangote Refinery could not be reached to find out how much was traded between the two parties. A spokesperson for the NNPCL, Femi Soneye, did not respond to questions.
The PUNCH was the first to report in October that four loads of crude oil had been sent to the refinery.
Our reporter heard from sources that the refinery was still waiting for more crude oil to arrive.
In an interview a month later, Vice President of Dangote Industries Limited Devakumar Edwin said that the crude oil received from the national oil company was “peanuts” compared to the amount that was needed to increase production of refined goods.
He said that NNPCL still hadn’t met its goal of delivering at least 385,000 bpd since the program started in October.
“Every day we need 650,000 barrels.” “NNPCL agreed to provide at least 385 000 bpd, but they are not even meeting that level,” the official told Reuters.
At the same time, the 650,000-barrel refinery has had to import crude oil to increase its production and start sending oil to countries in West Africa.
Chinedu Ukadike, the IPMAN National Publicity Officer, confirmed this news. He also asked the refinery to think about lowering prices to encourage healthy competition in the sector.
In a private interview with our reporter on Saturday, Ukadike said that the 650,000-barrel facility would set its price based on how much it costs to make the oil, but the foreign exchange rate is still a big part of figuring out the ex-depot price.
He said, “The cost of production is different for each refinery. For the Dangote analysis, I think the refinery would need to be looked at in more detail, since you should know that it has reviewed its processes twice in the past month.” After going down from N990 to N980, it went down even more to N970.
This situation is a great example of how deregulation works. Price is based on factors like supply and demand, as well as the cost of production and where the goods come from.
“Remember too that foreign exchange is the standard for oil products.” Also, keep in mind that the naira recently went up in value. Usually, this would have an effect on the domestic market, especially on the prices of goods and commodities, like oil and gas.
“You can’t deny that what’s happening in Nigeria is a good thing.” Whether Dangote will make the price go down. That is holy, but he will do it.
The IPMAN national officer also said that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should be praised for stopping plans to create monopolies. This had led to more competition and better prices.
“The naira-for-crude program is still based on foreign exchange, the amount of crude oil the Federal Government has given the refinery since the program began, and the amount of oil that is being produced.”
“A very important person also told me that Dangote is still buying crude oil from the United States.” “If what I said is true, it means that domestic intervention might not be able to bring prices down,” he said.
Nigerians were upset that the naira-for-crude program hadn’t lowered the price of petrol. In response, he said, “No, it is healthy; it will continue to make the sector better, like the telecommunications sector.” We are no longer talking about how scarce something is; we are now talking about how much it costs. There is no longer a problem of scarcity, which was one of the things that drove up the price of oil products. If everything else stays the same, deregulation will help us.
“These things are done to help Nigerians, and marketers are willing to do anything to make the lives of people waiting in line for fuel easier.” Keep in mind that this is the holiday season, so petrol prices should be lower.
Oil Products Retail Outlets Owners Association of Nigeria National President Billy Gillis-Harry, on the other hand, said that the lower landing costs would not make the group think about importing oil products.
“Please, forget about importing for now,” he told them. We have all decided not to worry about importing, so we are not doing it. We will talk about imports again if Dangote and Port Harcourt refineries don’t give us what we want.
Even though it would be cheaper for PETROAN to import, we’re not going to do that because we promised the president we wouldn’t.
“Remember that we made deals with some partners to import, and we’re not even paying ahead of time.” We worked out a deal worth $70 million just for imports. They were going to bring goods in, and when we bought something, we would pay them back in naira. But we had to stop all of that.
“The matter of importing should be put on hold for now. Let’s wait and see what happens after our meeting in January to see if our needs for product delivery will be met.”
“NNPCL called us and told us to start ordering goods from the Port-Harcourt depot.” That’s why there are so many benefits.
