Business

NNPC sells petrol to IPMAN at N995/litre

Published

2 months ago

October 15, 2024

Trends Admin

NNPC sells petrol to IPMAN at N995/litre

The Nigerian National Petroleum Company Limited (NNPCL) has agreed to supply Premium Motor Spirit (petrol) to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) for N995 per litre.

This came when the Department of State Services stepped in to resolve the dispute between the two parties.

The National Vice President of IPMAN, Hammed Fashola, informed our correspondent that the DSS intervention resolved many of the issues that merchants had.

Fashola also acknowledged that, as a result of their participation, the Nigerian Midstream and Downstream Petroleum Regulatory Authority agreed to pay the association’s unpaid N10 billion while resolving concerns with direct petrol purchases from the Dangote refinery.

“We really appreciate their intervention. They are doing their job. Anywhere they have seen that there may be a crisis, it is their duty to intervene. And their intervention brokered peace and understanding between the parties, and everybody agreed to work together,” Fashola stated.

Speaking on how much the NNPC will sell PMS to IPMAN, he replied, “For now, tentatively, I think they are offering us N995 per litre.”

With the N995 ex-depot pricing, Fashola promised that IPMAN members would no longer sell at costs much greater than those of large marketers, but said that distance is another reason for overpriced PMS.

“Our members sell at N1,200 or so, and this depends on the location. I think with the N995, there will be a little reduction. Don’t forget that if you transport a product from Lagos to a far distance, you will pay for transportation and other charges.

“We want to work on that because we want to have common ground. When we sit down and look at the price analysis offered to us and factor in all our expenses, we want to have a uniform price as much as possible.

“So, I will not be able to tell you the exact price now, but we are working on it, especially in the Lagos axis and other zones. We will look at the transportation cost and all that. At the end of the day, we will fix the price for ourselves,” he stated.

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The IPMAN head highlighted that IPMAN is interested in competitive prices, citing price disparities as a detriment to independent marketers.

“The price disparity has been a disadvantage between us and the NNPC Retail and major marketers. So, we are trying to look at how to close that gap so that we come back fully into the business. The lack of direct supply has been our problem, and now that we are solving that problem, I don’t think that disparity will be there again,” he stressed.

Fashola elucidated that the price differential is the reason for the queues in some filling stations in the cities.

“The queues you see are because of that difference in prices; that’s why people are saying there are queues. There are no queues; it is the price disparity that is causing the queues. So, if there is not much difference, we have filling stations everywhere; just drive in, buy fuel, and go. But that so much difference in the price is creating that scenario of queues,” he narrated.

Speaking on the directive that marketers can now buy petrol directly from local refineries, Fashola said the association would meet with Dangote this week.

“For now, we intend to meet with Dangote this week to see how we work out the modalities and all that. The Federal Government has given a directive, and we want to take full advantage of that,” he posited.

The IPMAN vice president emphasised that the association is not ignoring the NNPC either, as it would patronise the best price.

“At the same time too, we are not ignoring NNPC. So, whichever way, we are ready to do business with NNPC. It depends on the price; we go for the best.

IPMAN disclosed on Thursday that the cost of fuel from the Dangote Petroleum Refinery to NNPC was approximately N898/litre, but that NNPC was selling the same product to independent marketers in Lagos for N1,010/litre.

The association, which owns more than 70% of filling stations in the country, protested and threatened to shut down operations, as well as a return from the NNPC for previous petrol supply payments made by its members.

Abubakar Maigandi, the IPMAN national president, said in a live television interview on Thursday that the price was greater than what the NNPC paid for the Dangote refinery product.

He also stated that the national oil company had kept independent marketers’ funds for almost three months.

According to him, the NNPC acquired the fuel from the refinery for N898/litre but is demanding marketers to pay N1,010/litre in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.

“Our major challenge now is that independent marketers have an outstanding debt from the NNPC, and the company collected products through Dangote at a lower rate, which is not up to N900, but they are telling us now to buy this product from them at the price of N1,010/litre in Lagos; N1,045 in Calabar; N1,050 in Port-Harcourt; and N1,040 in Warri,” Maigandi stated.

NNPC sells petrol to IPMAN at N995/litre

Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

14 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

15 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.