Economy
Nigerians may pay more for cooking gas —-as DPR advocates for market forces as determinant of prices
According to him, the levers include availability, accessibility, affordability, and acceptability, as well as deliverability.
He noted that these were critical to utilising Nigeria’s proven gas reserves of 203 trillion cubic feet, TCF, for national development.
“Whereas references have been made to the other elements in this discussion, right pricing of gas is requiring particular attention to ensure security of gas supply and security of credible gas demand.
“This is because upstream gas producers must be assured that they will receive fair and equitable returns for their investments whereas, the price must be such that the end-users are able to pay for gas offtake in a reliable and consistent manner.
“Accordingly, the most robust and sustainable pricing mechanism is that which ‘let the market speak’ in a way that all costs are reflective of prevailing market conditions and for which the economic dynamics of demand and supply are allowed to interplay in an open, transparent, and free market environment.
“Thus, our drive as a nation should be early attainment to the ‘willing buyer; willing seller’ market status.
“Any transitional pricing arrangements, today, must be structured to quickly give way for market-led pricing regime and conditions,” he said.
Auwalu commended President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, for their outstanding leadership in deepening gas utilisation in Nigeria.
He noted that these efforts had culminated in the establishment of the National Gas Expansion Programme, National Gas Transportation Network Code and the National Gas Flare Commercialisation Programme.
Others, he noted, include the ongoing construction of the ELPS-II, OB3 and AKK pipelines as critical backbone gas infrastructure required to improve gas deliverability and availability.
He added that government was also working toward the expeditious passage of the Petroleum Industry Bill (PIB) which would enhance clarity in legislative, regulatory, fiscal, and administrative frameworks in the industry.
“This bill, when passed into law, will eliminate the uncertainties and bottlenecks associated with gas development in Nigeria and accelerate the growth of the Nigerian gas market to a fully developed and matured status.
“Specifically, on gas matters, the PIB provides for the following: promotion of dedicated gas exploration and development, gas terms, fiscal separation of gas as a commodity.
“It will also enhance the domestic gas delivery obligation, tariffing structure & methodology, open access regimes and revised gas pricing framework, to mention but a few,” Auwalu said.
He added that the DPR would continue to be an enabler and an opportunity provider in the oil and gas industry.
“Our focus remains the effective implementation of all policies and strategic programmes of government in an efficient manner that optimises the value of our petroleum resources for all stakeholders, all in overriding national interest,” he said.
Economy
News Alert: Again, NNPCL increases fuel pump price to N1,030 per litre in Abuja, N998 per litre in Lagos
— terminates exclusive purchase agreement with Dangote refinery
The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at its various outlets in Abuja on Wednesday.
This price hike follows the company’s decision to terminate its exclusive purchase agreement with Dangote Refinery.
On Monday, October 7th, 2024,NNPC ended the agreement, allowing other marketers to directly purchase petrol from the refinery.
Consequently the national oil company is no longer the sole off-taker while marketers are now free to negotiate prices directly with Dangote Refinery.
This shift aligns with the current practices of fully deregulated products, enabling refineries to sell to marketers on a “willing buyer, willing seller” basis.
By implication and with the N1030 pump price of NNPCL, pump prices of the product by the major and independent marketers are now expected to be over the NNPCL pump price.
Economy
NNPC sells Dangote September fuel delivery at N950.22 per litre in Lagos
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.
“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.
Economy
Rat Race: Dangote refinery drags NNPCL over purported sale of fuel at N898 per litre
“It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing.
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