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Fresh Fuel Scarcity Looms As PENGASSAN Threatens To Shut Down Installations Over Oil Theft

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Nigeria may witness yet another fuel scarcity as members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Wednesday threatened to pull out its entire workforce from oil and gas installations nationwide in protest of the increasing oil theft and vandalism.

Festus Osifo, the President of PENGASSAN, made the intentions of the association known at a press conference held in Abuja, lamenting that crude oil theft had crumbled the nation’s economy.

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He, however, declared that oil workers are ready to withdraw their services if the government pays lip service to their demands of fighting the menace with sincerity and sense of purpose.

According to him, in other climes governments deploy high technology to fight such heinous crimes of sabotage, but upon all the hues and cries and the damage oil theft and pipeline vandalism are doing to the nation’s economy, the Federal Government appears to be helpless.

Osifo, who described the growing incidents of oil theft menace as a real time challenge, urged government to develop the muscle and the political will to chase out oil thieves vandalising the nation’s pipelines.

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According to him, some cartels are responsible for the menace and are feeding fat on the nation’s wealth, as well as sabotaging the economy.

The PENGASSAN boss noted that crude oil theft had crumbled the economy and the union could no longer hold its breath, stressing that ‘beginning today across four states in Abuja, Lagos, Warri and Port Harcourt, all members of PENGASSAN will embark on rally across strategic locations to sensitise the nation on the dangers and economic losses inherent in crude oil theft and pipeline vandalism.

He lamented that due to oil theft, Nigeria could no longer meet up with OPEC quota of 1.8 million barrels of crude oil, even as the country is struggling to produce a million barrels, because the products are stolen, while companies are shutting down production.

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Osifo said the union had engaged and dialogued with critical stakeholders, agencies of government and service chiefs on how to curb oil theft, stating that despite all meetings, none had yielded the desired result, due to the cartels that are largely feasting on it and crumbling the economy.

To this end, he said the union could not take it anymore, rather than embark on a national rally to sensitise Nigerians on what is going on in the sector and the reason the economy is not growing abysmally.

He said if at the end, no justification for the exercise, the union will pull out the entire workforce in all oil and gas installations across the country, for a total showdown.

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READ ALSO: Fuel Subsidy Hits N1.593tn, Refinery Rehabilitation Gulps N54.66bn

According to him, this is the first time crude oil price is hitting the roof of $100 per barrel in the international market.

“This is a menace that is leapfrogging the country. This is the reason Nigeria keeps borrowing to finance the national budget. Enouis enough. We have to add our voice to the current struggle. It is not going to be a one-off thing. Companies are shutting down, our members are losing their jobs in services and producing companies.

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“The business is that bad now because companies are struggling to sustain the workforce. This is a real crisis that government of the day must develop the muscle and political will to chase out the oil thieves. What is happening is beyond blame game. This is the time to practicalise what we have been saying. The earlier government acts fact, the better for the economy,” he said.

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Naira Depreciates Against Dollar

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The Naira experienced a slight depreciation on Friday at the official market, trading at N1,528.56 to the dollar.

Data obtained from the website of the Central Bank of Nigeria (CBN) showed that the Naira lost N2.73.

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This represents a 0.17 percent loss compared to the N1,525.82 recorded on Thursday.

READ ALSO:Naira Appreciates At Official Market

The Naira, which opened the week on Monday with a gain of N9.52 against the dollar, held steady gains until Thursday.

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On Wednesday, the local currency gained N3.42 against the dollar and received commendation from the International Monetary Fund (IMF).

The IMF, in its 2025 Article IV Consultation report on Nigeria, commended the CBN for its reforms to the foreign exchange market, which supported price discovery and liquidity.

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JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

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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.

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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.

READ ALSO: JUST IN: Dangote Refinery Sashes Petrol Gantry Price

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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.

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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.

READ ALSO:Dangote Stops Petrol Sale In Naira, Gives Condition For Resumption

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.

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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.

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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.

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Naira Appreciates At Official Market

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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.

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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.

READ ALSO: Naira Appreciates Against Dollar At Foreign Exchange Market

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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.

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