Business

Marketers Oppose NNPC’s Sole Off-taker Status For Dangote Petrol

Published

2 weeks ago

September 4, 2024

Marketers have expressed strong concerns over the designation of NNPC Limited as the sole off-taker of petrol from the Dangote Refinery, warning that the move could create a monopoly and lead to profiteering in the downstream sector of the petroleum industry.

NNPC has historically been the sole importer of petrol into the country, while marketers and other stakeholders have struggled to secure the necessary foreign exchange to compete with the national oil company.

Speaking to Vanguard, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, stated that while marketers are not opposed to the government’s decision to increase the pump price of petrol, they strongly object to NNPC being the sole off-taker of the product from Dangote.

He emphasized the importance of making the product available to all marketers operating in the downstream sector.

“The most important thing is availability,” Ukadike said.

“We are not against the increase in fuel prices as marketers, but the fuel must be available for us to buy. The arrangement between Dangote and NNPC, which makes NNPC the sole off-taker, should be reconsidered. As major stakeholders and independent marketers, we believe Dangote should be allowed to sell directly to us. The distribution should be open so that other stakeholders can purchase the product, just like NNPC.”

He further argued that, “NNPC is also a competitor in the downstream sector, and it is wrong to single out one competitor among others, giving them exclusive access to petrol while others remain dependent on a single source. This will lead to monopoly, profiteering, and stagnation in the distribution process.”

Ukadike called on the Federal Government to intervene, stating, “It is crucial that what is good for one is good for all. IPMAN should be given the opportunity to obtain products directly because we can quickly distribute them, as we have a wide reach across the country and are reliable.”

Engr. Atinuke Owolabi, President of the Association of Professional Women Engineers of Nigeria, Lagos Chapter, also weighed in on the issue. She said, “We need to confirm the price from Dangote. I read that the federal government said they did not instruct NNPCL to increase fuel prices. I still do not understand why NNPCL wants Dangote to supply them directly. Dangote should distribute to everyone who wants to buy fuel. It is dangerous for NNPCL to be the sole distributor of Dangote fuel.”

“We do not want a monopoly again. Let Dangote distribute to all marketers so that we all have access to the fuel, which belongs to the people. It seems there are some cabals within NNPCL, and we need to be very careful,” she added.

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Business

CBN Confirms Implementation Of Controversial 0.005% Cybersecurity Levy On Transactions

Published

1 day ago

September 18, 2024

Editor

The Central Bank of Nigeria, CBN, has confirmed the enforcement of the controversial cybercrime levy at 0.005 percent on all electronic transactions under its new guidelines for the 2024-2025 fiscal year.

Apex Bank disclosed this in its recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.

The development comes after the levy was purportedly suspended after it sparked debate among Nigerians.

The Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at bolstering the nation’s cyber security infrastructure.

Meanwhile, the percentage has been reduced from 0.5 percent earlier announced in May 2024 to 0.005 percent in the new guidelines.

CBN reaffirmed its commitment to mandating banks and other financial institutions deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015″, the document said.

Recall that in a notice in May, the CBN mandated all banks in Nigeria to collect and remit a 0.5 percent cyber security levy to the office of the National Security Adviser.

However, amid outrage over the levy, President Bola Ahmed Tinubu ordered its suspension.

Business

Fuel Price Hike: Marketers Give Conditions To Buy Dangote Petrol, Eye Import

Published

2 days ago

September 17, 2024

Editor

Petroleum marketers in Nigeria say they are standing in limbo over the controversy surrounding Dangote Refinery Premium Motor Spirit (petrol) pricing as released by the Nigerian National Petroleum Company Limited on Monday.

This comes as the petroleum marketers demanded that Dangote Refinery should disclose the price it sold petrol to NNPCL for transparency.

Marketers further noted that the country cannot depend on domestic Petrol production to satisfy its daily consumption which stood at N50 million according to Nigerian Midstream and Downstream Petroleum Regulatory Authority latest data.

The President of the Petroleum Products Retail Outlets Owners Association, PETROAN, Billy Gillis-Harry and the President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi made this demand in a separate interview with DAILY POST on Monday.

Fresh petrol price hike looms

Recall that NNPCL on Monday announced a list of retail prices of Dangote Petrol across its outlets nationwide.

The new petrol prices showed that petrol will be sold at N950.22 per liter in Lagos State. Oyo and other South West states will pay N960 per liter for Petrol.

In Federal Capital Territory (Abuja), Kano, Kaduna petrol price will stand at N999.22 per litre.

Also in Imo and Rivers states, the price of petrol will be N980.2, while Borno State will pay N1,019.22 per litre.

Although it was gathered on Monday that the new prices have not been affected, the pump price of fuel may soon go up across the country.

Meanwhile, it was observed that NNPCL is yet to announce the price it would sell Dangote Refinery Petrol to marketers, owners of a majority of fillings stations in Nigeria.

The pump price of petrol at Independent marketers’ filling stations usually surpasses that of NNPCL retail outlets by over N100, which may bring the price of fuel to around N1,200 per liter.

Dangote Petrol Price Controversy

Dangote Refinery commenced first distribution of Petrol at the weekend with NNPCL as an official offtaker.

NNPCL had revealed that Dangote Refinery sold petrol to them at N898 per liter.

However, Dangote Group faulted NNPCL, but did not disclose the actual price it sold its inaugural petrol.

The development resulted in a petrol price controversy which further worsened the crisis in the sector.

Why Dangote Refinery should tell Marketers petrol price – Gillis-Harry

Reacting, PETROAN president, Gillis-Harry called for absolute transparency in the oil and gas sector.

According to him, the Dangote Refinery needs to come open to stakeholders on the exact price of its petrol as a prerequisite for marketers to purchase the product.

“Dangote Refinery should tell us what price it is selling its petrol since NNPCL has given its selling price.

“We should be able to know exactly what price that is coming from Dangote Refinery Petrol to us. We should know how NNPCL will deal with us. As it is now, we are standing in limbo”, he told DAILY POST.

NNPCL yet to release Dangote Petrol price for Marketers – IPMAN

On his part, IPMAN president, Maigandi said he is waiting for the NNPCL to release the prices it would sell Dangote Petrol to marketers.

He expressed displeasure with the scheme of things within the sector over the conflicting petrol pricing coming from Dangote Refinery and NNPCL.

“We are waiting for NNPCL to release prices that independent marketers will be buying petrol. They have not.

“We are buying directly from NNPCL, not Dangote Refinery. Marketers can cope without any rate.

“We, marketers, are not happy with the high cost of petrol because you have to use a huge amount of money to get the product.

“Dangote Refinery has established its facility, let the government try to make the other refineries function, this may lead to a reduction in the prices of petrol”, he told DAILY POST.

Nigeria can’t depend on Dangote Refinery – Marketers

When asked whether marketers would look to importation amid the cost of Dangote Refinery Petrol, Gillis-Harry said, “Dangote Refinery is producing about 25 million liters a day. That is just about 15,000 metric tonnes which is less than one cargo.

“And NNPCL has been selling so many cargoes to depot owners, including our members, to distribute to Nigerians previously.

“What it means is that we’re not going to be dependent on the petrol product that is produced in-country. There must be a level of importation to make up for the difference.”

Business

NNPC Releases Another Estimated Petrol Price Breakdown

Published

3 days ago

September 16, 2024

Editor

The Nigeria National Petroleum Company Limited has released another version of the breakdown of the estimated price of petrol bought from the Dangote refinery.

The PUNCH earlier reported that in a statement on Monday morning, the NNPC gave a chart breakdown of the refined petrol product it bought from the refinery on Sunday, September 15.

The nation’s oil firm stated that it is paying the Dangote refinery in United States dollars for the September 2024 petrol offtake, adding that Naira transactions will only commence on October 1st, 2024.

The statement reads, “The NNPC Ltd. has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.

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“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021.

“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.

“We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”

While the data of the estimated price to be sold around the country remains the same, the analysis of the transaction it had with Dangote Refinery was altered.

While the first press statement on Monday had a Nigerian Midstream and Downstream Petroleum Regulatory Authority fee of ₦8.99, the second statement showed ₦4.495.

The first statement had an inspection fee of ₦0.97, a margin fee of ₦26.48 and a distribution fee of ₦15.

In the second statement on Monday, there were no inspection and margin fees, while the distribution fee was changed to ₦42.45.

The second statement also had an additional Midstream and Gas Infrastructure Fund fee of ₦4.495.