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Petrol Price May Crash to N300/Litre If…– Modular Refineries

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The pump price of Premium Motor Spirit, popularly called petrol, should drop to about N300/litre upon the commencement of massive production by the Dangote Petroleum Refinery and other indigenous producers, operators of modular refineries stated on Sunday.

However, they pointed out that this would be achieve when the government ensures the provision of adequate crude oil to local refiners, stressing that refineries abroad were ripping off Nigeria.

Speaking under the aegis of the Crude Oil Refinery Owners Association of Nigeria, they explained that what happened to the cost of diesel after Dangote started producing it, would happen to petrol price once it is being produced massively in Nigeria.

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CORAN is a registered association of modular and conventional refinery companies in Nigeria.

“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,” the Publicity Secretary, CORAN, Eche Idoko, stated.

He told The PUNCH that “if we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure that we should be able to buy PMS at N300/litre as the pump price.

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“Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

When told that there are arguments that it is not possible to have such a drop in price because crude oil, the raw material for PMS, is price in dollars, the CORAN official insisted that petrol price would crash once it is being produced massively by indigenous refiners.

He said, “We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?

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“As I speak to you now there is every tendency that before December diesel price will drop further. The only reason reason why diesel is not doing below N1,000/litre is because of our exchange rate.

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“If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”

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On May 18, 2024, The PUNCH reported that Africa’s richest man, Aliko Dangote, stated that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting June this year.

Dangote had also stated that his refinery could meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand. He spoke at the Africa CEO Forum Annual Summit in Kigali, expressing optimism about transforming Africa’s energy landscape.

“Right now, Nigeria has no cause to import anything apart from gasoline (petrol) and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” the billionaire had declared.

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Also, Dangote had earlier in the year crashed the pump price of diesel to N1,200/litre when the commodity was selling at between N1,700 and N1,800/litre at the time.

He further dropped the price to below N1,000/litre, but could not sustain this price due to the rise in exchange rate. The refinery eventually returned the price to the initial rate of N1,200/litre.

Speaking on Sunday, the CORAN spokesperson stated that this was why the modular refiners had been calling for the sale of crude oil at the naira equivalent of the dollar rate.

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“We have told them (government) that even the dollars that you are asking us to use and buy this product, it is detrimental to the country. Strengthen the naira. We will buy at the international market rate, but at a naira equivalent.

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“These are the issues and they know these things but we can’t explain why they really can’t take decisions to change these concerns.

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“Get crude to local refineries, allow crude purchase in naira equivalent, make the environment business-friendly and watch locally produced petroleum product prices crash,” Idoko stated.

Nigeria currently has 25 licensed modular refineries. Five of them are operating and producing diesel, kerosene, black oil and naphtha. About 10 are under various stages of completion, while the others have received licences to establish.

Operators of modular refineries earlier stated that aside from the five that are in operation currently, the remaining plants are embattled due to the major challenge of crude oil unavailability, a development that has stalled funding from financiers.

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“Only about five of our members have completed their refineries. The others are having a major challenge.

“This challenge is that the people who are supposed to finance them have not disbursed financing for construction because they want some level of guarantee.

“A guarantee that if they finish the refinery, they are going to get feedstock, which, of course, is crude oil,” Idoko had explained.

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Oil marketers also believe that the cost of petrol should be lower than its current price once its production begins in Nigeria.

They welcomed the comment of Dangote that his refinery should start pumping out petrol this month, and expressed hope that the cost would be less than the price which the Nigerian National Petroleum Company Limited currently sells.

“We expect a reduced price for locally produced PMS, as I’ve earlier told you,” the National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated.

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Maigandi, while speaking from Saudi Arabia with The PUNCH, also stated no date has been communicated to marketers on when Dangote would release petrol to the market. Officials of Dangote refinery have remained mute on this.

“It is a welcome development if the refinery can start releasing PMS this month because as marketers we are currently set to start buying the product from the plant,” Maigandi stated.

The IPMAN president earlier stated that marketers were discussing with the managers of the plant, but not specifically on petrol pricing.

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“We have been discussing, but not about the price of petrol yet, rather on other matters such as the registration of members for the purchase of petrol and diesel from the refinery.

“It is true that we have started buying diesel from them, but you have to register with the company first. So a general registration is ongoing,” he explained.

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Maigandi, however, stated that though marketers had yet to receive the projected price for petrol from the plant, dealers would want to see a PMS price of about N500/litre from the Dangote refinery.

“We are looking at having it (PMS) at any price below the NNPC rate. The price which NNPC sells petrol is N565.50/litre, so we are expecting something below that price, maybe around N500/litre,” Maigandi stated.

The oil dealers also joined in the call for the provision of crude oil to local refiners, stressing that this would impact positively on the prices of refined petroleum products.

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“Of course, it is important for crude to be made available to local refineries because this will surely affect petroleum products’ prices positively,” the IPMAN president stated.

Regulators speak

The spokesperson of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene-Ita, said he was sure that the government has guidelines for the provision of feedstock (crude) to indigenous refiners.

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Ene-Ita promised to provide additional information on the matter, as he stated that he could not give further details at the time he was contacted by our correspondent.

Recall that the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, had earlier promised that the government would ensure that crude oil was supplied to domestic refiners.

He stated that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the NUPRC in a landmark move, had developed a template guiding the activities for Domestic Crude Oil Supply Obligation.

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“The commission in conjunction with relevant stakeholders from NNPC Upstream Investment Management Services, representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria, and Dangote Petroleum Refinery came up with the template for the buy-in of all.

“This is in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries,” Komolafe had stated.

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Morocco Jails Student One Year Over Gen Z Protest

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A student arrested during Morocco’s youth-led protests has been sentenced to one year in prison, his lawyer told AFP on Friday.

The case marks the first publicly known prison sentence linked to the kingdom’s Gen Z demonstrations, which have been held near-daily between late September and last week to demand social and political reforms.

The student was charged with “participating in an unauthorised and unarmed gathering” and “insulting the judicial police by providing false information”, lawyer Mohamed Nouini said.

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“The ruling is unfair, and we will appeal,” he added, arguing that sit-ins did not require authorisation as per a Supreme Court precedent.

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The lawyer said his client was arrested on September 30, three days after the protests erupted in the North African country.

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According to a report by news website Hespress, citing another lawyer, the student’s arrest was “an unfortunate coincidence” as he was in Casablanca for a family visit.

The other lawyer, Mohamed Lakhdar, told the judge the student had “not insulted” police nor provided false information, telling them he “was just a student”, according to the report.

Hundreds were arrested during the early days of the largely peaceful demonstrations.

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Some cities had seen spates of violence and acts of vandalism, while authorities have said three people were killed by police acting in “self-defence” during clashes in a village near Agadir.

The Moroccan Association for Human Rights (AMDH) has said roughly 550 people are facing prosecution on suspicion of joining the protests, with some still in detention.

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The organisers of the online-based movement behind the nationwide protests, the GenZ 212 youth collective, remain unknown.

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The collective has called for “peaceful sit-ins” on Saturday and demanded the release of those arrested during the demonstrations.

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The protest came after the deaths of eight pregnant women during Caesarean sections at a hospital in Agadir.

But protesters have also demanded reforms to the education system and a change of government.
AFP

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Trump Refiles $15bn Defamation Lawsuit Against New York Times

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US President Donald Trump has refiled a $15 billion defamation lawsuit against The New York Times, court documents show, weeks after it was thrown out by a federal judge.

Trump has intensified his long-established hostility toward the media since his return to the White House, and the suit is one of numerous attacks against news organizations he accuses of bias against him.

The Times’ complaint was thrown out in September because District Judge Steven Merryday took exception to its florid writing, repetitive and laudatory praise of Trump, and its excessive 85-page length.

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The suit filed Thursday in Florida and seen by AFP runs to less than half the length, at 40 pages.

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It takes aim at “false, defamatory, and malicious publications”, highlighting a book and two Times articles.

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The lawsuit named the newspaper, three Times reporters and the publisher Penguin Random House as defendants.

It accuses them of making defamatory statements against Trump “with actual malice.”

The statements in question wrongly defame and disparage President Trump’s hard-earned professional reputation, which he painstakingly built for decades” before entering the White House, the lawsuit says.

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The court was asked to grant compensatory damages of not less than $15 billion and additional punitive damages “in an amount to be determined upon trial.”

Trump’s attacks on media outlets have seen him restrict access, badmouth journalists critical of his administration, and bring lawsuits demanding huge amounts of compensation.

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In July, Trump sued media magnate Rupert Murdoch and The Wall Street Journal for at least $10 billion after it reported on the existence of a book and a letter he allegedly sent to sex offender Jeffrey Epstein.

Paramount settled Trump’s lawsuit over election coverage on CBS News’ flagship show “60 Minutes” for $16 million the same month. He had alleged that the program deceptively edited an interview with his 2024 election rival, Kamala Harris, in her favor.

AFP

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Italian Journalist’s Car Bombed, No Casualties

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A bomb destroyed the vehicle of a prominent Italian journalist overnight, without causing casualties, his investigative television news show announced Friday.

Sigfrido Ranucci’s car blew up in an explosion in Pomezia, near Rome, that also damaged the family’s other car and the house next door, according to Report, which broadcasts on RAI public television.

“The force of the explosion was so strong that it could have killed anyone passing by at the moment,” it said in a statement on X.

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Italian Prime Minister Giorgia Meloni strongly condemned what she called a “serious act of intimidation”.

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“The freedom and independence of information are non-negotiable values of our democracies, which we will continue to defend,” she wrote on X.

Interior Minister Matteo Piantedosi said he had ordered an increase in the journalist’s security “to the maximum”.

He called the attack a “cowardly and extremely serious act that represents an attack not only on the person but on the freedom of the press and the fundamental values of our democracy”.

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The Report show is known for its in-depth investigative reports.

According to the campaign group Reporters Without Borders (RSF), Italy ranks 49th in the world in terms of press freedom.

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Journalists who investigate organised crime and corruption are systematically threatened and sometimes subjected to physical violence for their investigative work,” it said in its latest update.

About 20 journalists currently live under permanent police protection after being the targets of intimidation and attacks, it added.

AFP

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