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Dangote refinery begins direct petrol sale to marketers

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The Dangote Petroleum Refinery has started supplying Premium Motor Spirit, popularly called petrol, to some oil marketers directly without recourse to the Nigerian National Petroleum Company Limited.

It was gathered that while more oil marketers were intensifying efforts to buy the product directly from the plant, others were importing the commodity, as hundreds of millions of litres of imported PMS should hit Nigeria’s shores in two weeks’ time.

Recall that The PUNCH exclusively reported on Monday that no fewer than four vessels carrying imported PMS arrived at seaports situated along the nation’s borders between Friday, October 18, and Sunday, October 20.

The report cited a document obtained from the Nigerian Port Authority, which showed that about 123.4 million litres of PMS were berthed at two seaports to improve fuel supply nationwide.

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The development confirmed an earlier exclusive report by The PUNCH, which disclosed that oil dealers intend to import the commodity to supplement the supply from the $20bn Dangote refinery.

Meanwhile, as major oil marketers import the commodity, their counterparts have started lifting PMS directly from the Lekki-based plant.

A senior official at the refinery said marketers are now allowed to approach the company for direct business transactions on a willing-buyer, willing-seller basis.

“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable official, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

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The source, who could not tell the price at which marketers were lifting the product, noted that the oil dealers would not come if the price was not favourable to them.

“We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated.

He maintained that things are improving, especially as the Federal Government commenced the supply of crude to the facility.

Another official at the facility showed one of our correspondents the trucks of some marketers loading the product directly from the plant without going through NNPC.

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“Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated.

The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery had focused on ensuring 53 per cent of PMS production from its crude oil supplies.

“This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.

When asked if marketers had started the direct purchase of petrol from Dangote without recourse to NNPC, one of the notable major marketers in the country replied in the affirmative.

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“Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the source stated.

But this is contrary to claims from some quarters that the refinery would not be able to sell petrol to marketers unless the deal between it and the NNPC is terminated.

The PUNCH recalls the company had initially announced that the NNPC would be the sole off-taker of its petrol from September 15.

A source at the refinery said this was as decided by the Federal Government. The source said he was taken aback when the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced on October 11 that marketers should now lift petrol directly from the refinery.

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“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who heads the committee stated in a statement.

As the committee made the announcement, operators said the market had been fully deregulated and they would approach the refinery to apply for PMS lifting.

The PUNCH recalls that the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, recently led other officials of the association to a meeting with the Vice President of the Dangote Industries, Devakumar Edwin, in Lagos.

Though Fashola did not give much updates about the meeting with Edwin, he appreciated him for the roles he had been playing.

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“Edwin received us very well and promised to make things easier for IPMAN to do business with Dangote,” he said.

Fashola added, “We had a fruitful discussion with the group. We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote. We hope very soon we will start lifting products from the facility.”

However, IPMAN said it could not commence the immediate off-take of the product unless the refinery ends its contract with the NNPC.

But officials at the refinery stated that the refinery was now selling PMS to some marketers.

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When the Dangote refinery began the sale of PMS on September 15, the NNPC said it bought the product at the rate of N898/litre; a claim the refinery described as mischievous.

The refinery said the naira-for-crude committee would be the one to announce the price of its PMS. The committee has yet to do so as of October 22.

Credit: PUNCH

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Give unemployed youths free land to farm, Utomi tells Tiinubu

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A political economist and 2007 presidential candidate of the African Democratic Congress, Prof. Pat Utomi, has advised President Bola Tinubu on ways to tackle Nigeria’s surging inflation and food security crisis.

Tinubu, in his New Year address, pledged to prioritise food production and achieve economic stability by implementing policies aimed at reducing inflation and ensuring food security.

The President also pleaded his administration’s commitment to reduce inflation from its current 34.6 per cent to 15 per cent.

But Utomi said the success of the President’s goals would depend on his administration’s ability to tackle insecurity, provide incentives for farmers, and implement effective agricultural policies to create a stable and sustainable food production system in the country.

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Utomi, who spoke in an interview with Saturday PUNCH, cautioned against the idea of massive food importation as a solution, warning that it would worsen Nigeria’s foreign exchange problems and undermine local agricultural production.

He argued that imported food would remain costly due to unfavourable exchange rates, maintaining that any subsidy on such imports would harm the nation’s capacity for sustainable food production.

Utomi said, “There is hunger, real hunger in the land. One of the biggest causes of inflation is food price inflation and it is central to how people feel and their abilities to do other things.

“To address this, the government needs to make a deliberate policy to push down the cost of food by investing in agriculture, giving massive incentives to young people to make farming attractive to them and check insecurity as quickly as possible.”

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To address insecurity, Utomi proposed the creation of special agricultural security forces, forest rangers”, to protect farmlands and prevent clashes between farmers and herders or attacks by bandits.

He called on the government to support farmers to embark on irrigation schemes to enable year-round farming.

“The government should create schemes for unemployed youths, provide them with one hectare of land each, supply inputs, and train them in modern agricultural practices. In 90 days, we could see a significant increase in food production that would force down prices,” Utomi explained.

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Naira abuse: Policeman in viral video with Okoya’s children detained for misconduct

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The Nigeria Police Force has detained a yet-to-be-named officer seen in a viral video with Wahab and Raheem, sons of billionaire businessman, Chief Razaq Okoya, abusing the naira.

This was disclosed by the Force Public Relations Officer, Olumuyiwa Adejobi, on his X handle yesterday.

According to him, the moment captured in the video involving the police officer is unethical and contrary to the values of the force, stressing that disciplinary action was underway to address the misconduct.

In the video, the policeman was seen holding stacks of currency.

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The act violates Section 21(3) of the Central Bank of Nigeria (CBN) Act, 2007, which prohibits the abuse of the national currency.

Adejobi wrote: “The policeman captured in the recent viral video shared by the sons of the Lagos businessman, Chief Okoya, where they were abusing the naira, has been identified and detained for disciplinary action.

“The involvement of the policeman has been condemned, as it’s unethical. We will always strive hard to uphold the sanctity, credibility and core values of the police. Thanks.”

Raheem, one of the sons of the billionaire businessman in the video, has publicly apologised to the Nigeria Police Force (NPF) as well as Nigerians over the incident.

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Reacting to public outrage over the incident on his X account yesterday, Raheem said: “To the Nigerian people, my actions were not intended to cause any trouble or harm. My intentions were pure and naive.

“I ask for your forgiveness and support as I had no intention of raising such an alarm. I wasn’t fully aware of the consequences of my action.”

The video of the two Okoya sons abusing the naira had attracted widespread criticism with expressing belief that nothing would happen to them because of their father’s status in the country.

In the said video, Wahab and Raheem were dressed in white flowing gown (agbada), flaunting stacks of crisp N1000 notes to promote the latter’s new song titled “Credit Alert”.

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As the video continued, it captured the mobile policeman holding bundles of N1,000 notes while the billionaire’s sons danced and flung the cash into the air.

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PDP protests as councillors impeach another Edo LG Chairman, Vice

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The suspended Chairman of Oredo Local Government Council of Edo State, Dr. Tom Obaseki, and the suspended Vice Chairman, Patricia Ero, were this afternoon impeached by eight of the twelve councillors.

Obaseki, Ero and the councillors were elected on September 2, 2023 for a three-year tenure, which ended abruptly, as was done in most of the 17 other local government councils of Edo.

On December 17, 2024, the twenty four-member Edo House of Assembly suspended all the chairmen and vice chairmen of the 18 local government councils of the state for two months.

The Edo lawmakers, who are members of the governing All Progressives Congress (APC), the main opposition Peoples Democratic Party (PDP), and Labour Party (LP), also directed the leaders of the legislative arms to take over the administration of the councils.

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The suspension of Edo council chiefs was in view of the state Governor, Senator Monday Okpebholo’s petition of November 16, 2024 to the lawmakers, titled: “Insubordination and Gross Misconduct by the 18 Local Government Chairmen Over Their Refusal to Submit Financial Records for Scrutiny,” with the governor, who was inaugurated on November 12 last year, urging the legislators to address the issue.

Meanwhile the Edo State Chairman of the main opposition Peoples Democratic Party (PDP), Dr. Tony Aziegbemi, yesterday kicked against the impeachment by six of the twelve councillors of the suspended Chairman of Oredo Local Government Council of Edo, Dr. Tom Obaseki, and the suspended Vice Chairman, Patricia Ero, both of PDP.

Obaseki, Ero and the councillors were elected on September 2, 2023 for a three-year tenure, which ended abruptly, as was done in most of the 17 other local government councils of Edo.

On December 17, 2024, the twenty four-member Edo House of Assembly suspended all the chairmen and vice chairmen of the 18 local government councils of the state for two months.

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The Edo lawmakers, who are members of the governing APC, the PDP, and LP, also directed the leaders of the legislative arms to take over the administration of the councils.

The suspension of Edo council chiefs was in view of the state Governor, Senator Monday Okpebholo’s petition of November 16, 2024 to the lawmakers, titled: “Insubordination and Gross Misconduct by the 18 Local Government Chairmen Over Their Refusal to Submit Financial Records for Scrutiny,” with the governor, who was inaugurated on November 12 last year, urging the legislators to address the issue.

Aziegbemi, however, accused Okpebholo’s APC government of using impostors to impeach Obaseki and others council chairmen being intimidated and harassed across the 18 LGAs.

Edo chairman of PDP, at a news conference, claimed that twelve impostors, who posed as councillors, invaded Oredo local government council secretariat, with a claim to have impeached the chairman and his deputy.

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He called on President Bola Tinubu to intervene in the sad development, which he described as worrisome and unacceptable.

Aziegbemi declared that Okpebholo’s administration must be called to order, so as to avoid anarchy, following the outright disregard for the rule of law.

The impeached Oredo chairman insisted that he remained the duly-elected helmsman of the council.

He said: “My attention has been drawn to a video circulating on various media platforms, purportedly showing my impeachment as the Executive Chairman of Oredo Local Government Council of Edo State.

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“I urge the general public to disregard the video in its entirety, as it is the product of a criminal act perpetrated by hoodlums and thugs who unlawfully invaded the legislative arm of Oredo Local Government Council.

“The individuals impersonated the legitimately-elected legislators, who are currently in recess, in a failed attempt to undermine the democratic will of the people of Oredo LGA.”

Obaseki also stated that the act represented the height of criminality and lawlessness, which he maintained would not be tolerated in a civilised society.

He said: “I remain the duly-elected Chairman of Oredo Local Government Council of Edo State, having been given the mandate to serve by the good people of Oredo LGA on the 2nd of September, 2023.

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“If this level of impunity is allowed to stand, then tomorrow, anyone can wake up, invade a Government House, and declare himself governor or president. Such a scenario is unthinkable in a lawful society. We are not in a banana republic, where anarchy reigns.”

The removed Oredo chairman urged the peace-loving people of the LGA to remain calm and law-abiding.

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