Business

FG Summons Oil Marketers, Set To Close Equalisation Fund

Published

2 years ago

June 19, 2023

Following the deregulation of the downstream petroleum industry, the Federal Government has begun the process of closing down the Petroleum Equalization Fund.

The move, it was gathered, was in line with the provisions of the Petroleum Industry Act 2021.

The PUNCH gathered the meeting held in Abuja between officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and oil marketers on Wednesday deliberated on the closure of the fund.

The officials and marketers discussed the reconciliation of the PEF accounts and plans to close it in the next one month.

“The meeting was a consultation with the NMDPRA on implementation of the PIA, clarifications of various issues, applying for licences, quality issues and closure of the Petroleum Equalization Fund,” a former Chairman of Major Oil Marketers Association of Nigeria, Tunji Oyebanji, told The PUNCH in a telephone interview.

“Some people owe PEF and it also owes some people. There is a need for reconciliation to close out the account,” Oyebanji explained.

Formed in 2021, NMDPRA encompasses a merger of three defunct regulatory agencies: Petroleum Products Pricing Regulatory Agency, Petroleum Equalization Fund {Management} Board, and the Midstream and Downstream Divisions of the Department of Petroleum Resources.

The National Controller of Operations, Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, also told The PUNCH that the Fund currently owes its members about N80bn.

“We do not owe the Fund because before you lift products, you would have made deposits. But the Fund owes us N80bn which would be paid before the closure. The money piled up over some time but it has stopped piling up. The role played by the Fund has ended upon the full deregulation of the downstream sector as stated in the PIA,” Osatuyi said.

He confirmed that IPMAN was also invited to reconcile its account with the Fund.

“No need for the Fund again since we have deregulated. We don’t know when the money they owe us would be paid but it would be paid before the accounts are eventually closed. The process has started and our members have been invited,” he added.

PEF was set up by Decree 9 of 1975 (as amended by Decree Number 32 of 1989 now chapter 352 of the Laws of the Federation). Its main function was to ensure price uniformity of petroleum products via the reimbursement of marketers for losses they incurred in trucking products from depots to their filling stations anywhere in Nigeria.

A source in the Depots and Petroleum Products Marketers Association of Nigeria also confirmed that its members were invited for the reconciliation meeting.

“We already know the closing of the Fund would happen, and they have told us that it has even closed. We are now at the stage where our members and other depot owners are being invited to reconcile the account. They informed us that the account would be closed in the next 20 days, starting from yesterday (Wednesday) when the meeting was held,” the source told The PUNCH.

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

2 weeks ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

1 month ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.

Business

BREAKING: Again, Dangote Refinery Cuts Petrol Price

Published

1 month ago

May 22, 2025

Editor

The Dangote Petroleum Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with new prices now ranging between ₦875 and ₦905 per litre, depending on location.

The ₦15 per litre cut applies across all regions and partner fuel stations, and was confirmed via an official announcement posted on Dangote Refinery’s social media channels on Thursday.

Major marketers participating in the new pricing regime include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy — partners in the distribution of Dangote-refined products.

Under the previous pricing structure, Lagos residents paid ₦890 per litre, while prices reached ₦920 in the North-East and South-South regions. With the latest adjustment, Lagos now pays ₦875 per litre, while the North-East and South-South will see prices drop to ₦905.

A regional breakdown of the revised prices is as follows: Lagos: ₦875, South-West: ₦885, North-West & Central: ₦895, North-East & South-South: ₦905 and South-East: ₦905.

In its announcement, Dangote Refinery encouraged consumers to purchase fuel only from authorised partner stations and urged the public to report any cases of non-compliance via its official hotlines: +234 707 470 2099 and +234 707 470 2100.

“Our quality petrol and diesel are refined for better engine performance and are environmentally friendly,” the company said.