Business

Crude Oil Price Will Dictate Petrol Pump Price, Says FG

Published

8 months ago

January 16, 2025

The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri on Thursday insisted that fluctuations in the pump price of petrol would be determined by the price of crude oil in the international market.

Lokpobiri who spoke in Abuja at the the inaugural meeting of the Petroleum Industry Stakeholders Forum, PISF, in Abuja, noted that the downstream sector is now fully deregulated with the government no longer involved in setting prices.

The government’s position followed the recent hike in the price of petrol from N909 per litre to N970 per litre by depot owners, fueling fears of a possible rise in pump price at filling stations to over N1,000 per litre.

Lokpobiri pointed out that deregulation ended all malfeasance associated with the petrol subsidy policy.

He said: “The whole essence of deregulation is for price to find its level. Before now you will agree with me that every day you are hearing negative news about petrol subsidies. Today, you journalists have no negative news about petrol subsidies because it is completely regulated, and the price will find its level.

“As oil price goes up, petrol price will go up and as oil price comes down, price will come up. During the Christmas season, I was in Bayelsa, and I tried to go around different filling stations. Some filling stations were selling N1,020, others were selling N999, while others were selling N1,015.

“What we are concerned about, and I’ve always had that discussion with you, with the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is that the government is more interested in quality control. Government is more interested in availability and what the government is particularly interested in is dispensation of the right quantity.

“If you are buying 10 litres of PMS, let it be that you are not short changed by the retail filling station. That is where we have issues. And once there is competition, people have a choice, and that’s why you don’t see any queues”.

The Minister explained that the PISF which is modelled after the Bankers Fommittee meetings will afford leaders in the oil and gas industry the opportunity of addressing industry issues, amicably.

Also speaking, the Chairman, Major Energy Marketers Association of Nigeria, MEMAN, Mr. Huub Stockman explained that although petrol pump price is affected by crude oil price, this may not be immediate.

Mr. Stockman, who is also the Managing Director, NNPC Retail, added: “This is because crude and product prices don’t always directly relate. And it’s not always that when the crude price changes, immediately all other products that are derivatives from it change. But I think normally there is a correlation, but I think it’s too early to say when or what impact it would have”.

On his part, the Authority Chief Executive, NMDPRA, Farouk Ahmed explained that the full price deregulation of petroleum products market has enabled the creation of a level playing field which fosters healthy competition and enables investment opportunities.

He stated that the “reform has occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services. The National Energy security has been further enhanced with multiple sources of supply. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have lead to fuel queues”.

Ahmed observed that “the contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced. Equally, the emerging competitive market environment, downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide”.

He added that “the Forum will aid speedy resolution of issues by the policy-making and regulatory bodies thereby helping to mitigate disputes that may otherwise lead to unnecessary and costly litigations or alternative dispute resolutions”.

Earlier in his address at the meeting, the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr Gbenga Komolafe said the Commission was working hard in collaboration with stakeholders to increase Nigeria’s oil production, adding that the number of active oil rig has increased by 79 per cent from 8 in 2021 to the current 38.

He said: “The upstream sector experienced growth in the national oil and gas reserves by 1.45% and 0.206% respectively in 2024 compared with 2023 and oil production rose by 26% from April 2023 to November 2024. The active rig count increased from an average of 8 in 2021 to 38 as at today representing 79% growth. Also, with effective collaboration with the security agencies, the theft and deferment has reduced drastically by more than 40% in the last year. The import of this is that its not all gloomy for the industry”.

While describing the creation of the forum as timely, Engr Komolafe harped on the need to significantly increase oil production in the country.

“The 2025 budget is predicated on crude oil production of 2.062 million barrels at $75 per barrel whereas our current production is averaging 1.7 million barrels leaving a deficit of about 350,000 barrels to be bridged. To avert budget deficit and revenue gap, the Commission launched the project 1m barrel per day incremental production initiative during its 3rd year anniversary.

“This initiative entails that every player within the upstream value chain operates in onestop shop economic system as against operating in silos thereby failing to leverage optimum capability and economic of scale”, he stated.

Business

Fuel Scarcity Imminent As NUPENG, Dangote Face-off Festers Business

Published

15 hours ago

September 5, 2025

Editor

The stability in the distribution and availability of petroleum products being enjoyed by Nigerians is about to be aborted as a result of the seeming cold war between the management of the Dangote Refinery and one of the umbrella unions of workers in the oil industry, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

NUPENG, in a statement jointly signed by Comrades Williams Akporeha and Afolabi Olawale, President and General Secretary, respectively of NUPENG and issued to newsmen in Abuja on Friday, the Union accused the management of Dangote Refinery of alleged anti-labour practices, inimical to the survival and means of livelihoods of its members under its Petroleum and Tanker Drivers Branch.

The Union specifically expressed strong reservations about the position of Chairman of Dangote Refinery, Aliko Dangote, that drivers recruited for operations of its 10,000 Compressed Natural Gas (CNG) Trucks imported into the country would not be allowed to join any trade union.

The Union described the position taken by the management of Dangote Refinery as an affront on the right of association, guaranteed under the 1999 Constitution, and a breach of relevant international labour laws to which Nigeria is a signatory.

The NUPENG recalled several meetings it initiated, jointly with the leadership of the Nigerian Association of Road Transport Owners ( NARTO), to prevail on Aliko Dangote to rescind his stance not to allow its drivers to join trade unions. The Union expressed regret that its appeals fell on deaf ears.

“Arising from the unfortunate outcome of the meeting, the leadership of the Union has made several efforts to get relevant institutions of the country to make Alhaji Aliko Dangote and his cousin, Alhaji Sayyu Ali Dantata, follow the line of global best practices and decency, but all to no avail.

“To our utmost shock, Alhaji Sayyu Aliu Dantata’s MRS commenced the recruitment of drivers for the imported CNG Trucks on Friday, 29th August 2025. “The drivers being recruited are being forced to sign an undertaking not to belong to any existing union in the Oil and Gas Industry.

“NUPENG is seriously concerned and disturbed with the unconscionable business practices of Alhaji Sayyu Aliu Dantata and Alhaji Aliko Dangote, who are scared of allowing unions to exist in their business outfits. To us, amassing wealth on the basis of enslavement, depriving workers of a union and a voice, amounts to creating filthy wealth.

“NUPENG will not stand idly by while these billionaires seek to destroy the livelihoods of thousands of workers, including tanker drivers.

“NUPENG stood in solidarity with Dangote Refinery during its construction and commissioning.

“We did so in good faith, in expectation that it would create jobs, strengthen local capacity, and benefit the Nigerian people, under a conducive atmosphere for unions to thrive.

“Unfortunately, Alhaji Aliko Dangote has chosen to betray that trust by scheming to monopolise distribution, crush competition, and enslave the sector and raise prices, which would ultimately result in an attack on the living standards of the masses of ordinary Nigerians.

“This is not philanthropy, it is economic sabotage!”
While appealing to relevant oil industry regulatory agencies to wade into the unfolding crisis, the Union dropped the hint that it would call on its members to down tools and shun loading of petroleum products, effective from Monday, September 8.

“We call on the Nigerian Midstream & Downstream Petroleum Authority (the Authority, for
short) to invoke its powers under Section 32(u) & (aa) of the Petroleum Industry Act (PIA). Under those two provisions, the Authority is empowered to promote competition and private sector participation in the midstream and downstream petroleum operations.

“The Authority has responsibility to identify, investigate, and prevent abuse of dominant positions and
restrictive business practices with regard to midstream and downstream petroleum operations.

“Nigeria is a member of the international community and a member state of the International Labour Organisation. Nigeria has ratified Convention No. 87 of 1948, the Convention on Freedom of Association and Protection of the Right to Organise, 1948. This Convention had
been ratified by Nigeria as far back as 17th October 1960. Under the Convention, workers have the right to join unions of their choice, for the protection of their employment and trade union rights, and without prior authorization of any employer or authority.

“Indeed, by virtue of section 254C (2) of the Constitution of Nigeria, a ratified ILO Convention is a constitutional provision.

“Therefore, any practice or policy by any employer that seeks to deprive workers of the right of association is an affront to the Constitution.

“Above all, the rights of association, including membership of trade unions, are guaranteed by Section 40 of the Constitution. Alhaji Aliko Dangote and his cousin, Alhaji Sayyu Aliu Dantata, should not be allowed to enslave Nigerian workers. They should be made to be lawful business persons and not lawless individuals or business outfits. Nigeria is a country of laws, not a lawless society.

“By this statement, we call on the Federal Government of Nigeria and its agencies, including well-meaning segments of the Nigerian society, to call the two trillionaire businessmen to order. They should be told to obey the laws of Nigeria. If they persist in their anti-union, tyrannical attitudes, NUPENG is set and ready to mobilise its forces to fight within the framework of the law.

“Meanwhile, since Alh Aliko Dangote and his cousin have resolved to replace all Petroleum Tanker Drivers in Nigeria, and no one or institution can stop them, the members of the Petroleum Tanker Drivers Branch of NUPENG will, from Monday, 8th September 2025, start
looking for alternative employment/skills and sources of livelihoods.

“We plead with the general public to bear any inconveniences our struggle against this tyranny and indecency may cause.“
(TRIBUNE)

Business

FG Offers Up To 16.54% Yield On September Savings Bonds

Published

4 days ago

September 1, 2025

Editor

The Federal Government, through the Debt Management Office, is offering investors annual yields of up to 16.541% on its September 2025 Federal Government of Nigeria Savings Bonds.

The DMO, in a circular on its website on Monday, announced that the subscription window opens immediately and will close on Friday, September 5, 2025, with settlement scheduled for September 10, 2025.

Coupon payments will be made quarterly on March 10, June 10, September 10, and December 10 and will be paid directly to investors.

The DMO offered investors two subscription categories of the Federal Government Savings Bond.

The first is a two-year bond, which will mature on September 10, 2027, and attracts an annual interest rate of 15.541 per cent.

The second is a three-year bond, set to mature on September 10, 2028, with a higher annual interest rate of 16.541 per cent.

The two-year bond interest rate rose to 15.541% in September 2025, up from 14.401% in August.

Similarly, the three-year bond recorded an increase to 16.541% in September, compared to 15.401% in the previous month.

The FGN Savings Bond programme, launched in 2017, aims to deepen the domestic bond market, promote financial inclusion, and give retail investors access to secure, low-risk government securities.

Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional subscriptions in multiples of ₦1,000. Individual investors can subscribe up to ₦50 million.

On the status of FGN Savings Bonds, DMO noted it “qualifies as securities in which trustees can invest under the Trustee Investment Act; Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.

“Listed on The Nigerian Exchange Limited (and); qualifies as a liquid asset for liquidity ratio calculation for banks.”

The office said the bond is “backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.”

Business

NNPCL Reduces Fuel Price After Dangote Refinery’s Adjustment

Published

3 weeks ago

August 14, 2025

Editor

The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.

It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.

This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.

The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.

“It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.

This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.

The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.