Despite claims that Nigeria’s refineries are now
operational, the country will have to depend
largely on imported petrol in the third quarter of
2015.
It was learnt on Monday that import allocation
for petrol was given to importers of the product
last week.
Our correspondent gathered that no refinery had
been able to produce petrol in commercial
quantity in the past weeks, despite claims by the
operators of the facilities that they had started
refining crude oil to produce petroleum products.
In fact, senior officials of the Federal Ministry of
Petroleum Resources and the Petroleum
Products Pricing Regulatory Agency told our
correspondent in Abuja on Monday that tankers
still headed for Lagos to load products.
The Nigerian National Petroleum Corporation last
month announced that the Port Harcourt Refining
Company was ramping up capacity to about 60
per cent of the 210,000 barrels per day of crude
capacity, while production from the Warri
Refining and Petrochemical Company had been
projected to hit 80 per cent of its installed
125,000 bpd capacity.
The Manager in charge of the Production
Programming and Quality Control, Kaduna
Refining and Petrochemicals Company, Shehu
Malami, had reportedly said that the refinery
would save about $5.33m daily for the country
when it hits 90 per cent production capacity in
the first quarter of 2016.
But officials at the petroleum ministry and the
PPPRA wondered why the refineries had yet to
churn out products, particularly petrol, if actually
they were operational as claimed.
An official at the ministry, who spoke to our
correspondent in confidence, said, “Has any of
the refineries stated the quantity of products
that they are actually churning out? It is already
known that Nigeria consumes an average of 40
million litres per day; so, if the refineries are
working, then you can now say maybe they are
producing about 20 million litres per day and you
can now subtract that from the imports.
“We need to verify if indeed they have started
churning out products, not just on paper. Just
two weeks ago, they gave letters of allocation to
importers to bring in products to meet the third
quarter consumption demand.”
In his reaction, the National President,
Independent Petroleum Marketers Association of
Nigeria, Mr. Chinedu Okoronkwo, said the
refineries were working but they had constraints
in terms of supplying products to marketers.
He said, “For now, marketers go to where they
think they can get the products easily without
problems. The refineries are working, no doubt,
but we know that the pipelines are not
functioning properly because of vandalism. We
are working with the Federal Government to see
how we can connect, especially Aba and Enugu
up to Makurdi.
“Soon, a lot of things will fall in place.
Considering what they are producing now, if the
pipelines are not in order, then they will not be
able to get products across. However, I’m sure
that the new government, being a government of
change, is working on this issue.”
Meanwhile, the daily subsidy on a litre of petrol
has dropped to N33.86 from a high of N51.61 on
June 11, 2015, pricing template by the PPPRA
showed on Monday.
The PPPRA put the landing cost of the product
at N105.37 per litre as of August 7, down from
N123.12 per litre on June 11, while the Expected
Open Market Price was N120.86 per litre,
compared to N138.61 on June 11.
Subsidy refers to the money paid, usually by the
government, to keep prices below what they will
otherwise be in a free market system.
There have been calls in some quarters urging
the Muhammadu Buhari-led government to
remove fuel subsidy, which has been described
as wasteful and prone to corruption.
Nigeria, Africa’s top oil producer, relies on
importation for most of its fuel needs as the
country’s refineries operate below installed
capacity. The sustained fall in global oil prices
has triggered the decline in the landing cost of
petrol as crude oil constitutes a major
component in the pricing template.
Last week, the global benchmark Brent crude
plunged below the $50 per barrel mark, for the
first time in six months.
Brent, against which Nigeria’s oil is priced, was
trading at $49.86 per barrel on Monday.
Analysts at Ecobank Capital including the Head
of Energy Research, Mr. Dolapo Oni, noted that
the Federal Government had decided to retain its
fuel subsidies at least for another quarter as the
PPPRA had recently selected 29 petroleum
marketers to import 1.6 million tonnes of petrol,
approximately 2.1 billion litres, for the third
quarter of the year.
They said, “The decision to retain the fuel
subsidies is particularly surprising given the
government’s fiscal position is significantly
constrained by the drop in oil prices and
difficulties in selling its crude.”
They said, going forward, the government’s
revenue and ability to sustain the fuel subsidies
could be significantly challenged by trends in the
global oil market.


Source: http://www.punchng.com/business/business-economy/massive-fuel-imports-continue-as-refineries-fail/

Hmm nawah...... Nawatically

Pls who is the minister for Petroleum

We get oil d import oil hmmm very sardonic

OK
Food for wailers....

Now I am beginning to believe that APC is propaganda

The problem is that Subsidy has been removed already ..Nigerians buy PMS @N100/litre at least from service stations with black marketers ripping and slicing the masses ..

We will get there. Buhari, you gat my back but ..


...but, you didn't offer GEJ a shoulder!

kamair237:
OK
Food for wailers....

abeg shut ur mouth, you nor dey tire? abi you nor get work?

Abeg my sai buhari is working joor don't believe those lies

which one do we believe

Buhari and his artiste have been giving us a gloomy pix of refineries whereas there pump price is still #100. Please guard yourselve because Nigeria might be in Mars in the next four years with this kind of lies being spread by APc

kamair237:
OK
Food for wailers....

we know ur case is irredeemable....so no need to take an awusa goat like u seriously

Yes it may even GI beyond 2015. The Cabals driving the oil sector is so powerful that it can determine the swing of the pendulum.

jack67:
abeg shut ur mouth, you nor dey tire? abi you nor get work?

nahhh!!! U ain't worth it....

Errdyots


The refineries will start working by the end of the month or september, not sure exactly when

no one said its working yet

So what if it's still being imported? you are not happy that there are no long queues at petrol station and you are not happy that fuel now sells for 87 naira

Awon enemies of progress oshi

DaBullIT:
Errdyots


The refineries will start working by the end of the month or september, not sure exactly when

no one said its working yet

So what if it's still being imported? you are not happy that there are no long queues at petrol station and you are not happy that fuel now sells for 87 naira

Awon enemies of progress oshi

There are small queues in stations, bro ..and the pump price is still not N87 apart from Oando stations and ..and ..

Another Apc propaganda that is gradually back firing.

Things fall apart when a government is built on lies, propaganda and falsehood.

DaBullIT:Errdyots


The refineries will start working by the end of the month or september, not sure exactly when

no one said its working yet

So what if it's still being imported? you are not happy that there are no long queues at petrol station and you are not happy that fuel now sells for 87 naira

Awon enemies of progress oshi

Just listen to yourself boy!!! Tell me why anybody will take you serious if this is the way you reason...

dunkem21:



There are small queues in stations, bro ..and the pump price is still not N87 apart from Oando stations and ..and ..

I drove from Ibadan to Ede , Petrol retails at 87 , From Ede to Akure, It's still 87 , Don't know how soon i'll be leaving for ABJ , but all those stations i checked/ bought from not OANDO abeg and any marketer selling above 87 should be reported

jammani:
Now I am beginning to believe that APC is propaganda

Did you read the whole story before commenting?
Towards the end of the story we have this:


"In his reaction, the National President,
Independent Petroleum Marketers Association of
Nigeria, Mr. Chinedu Okoronkwo, said the
refineries were working but they had constraints
in terms of supplying products to marketers.
He said, “For now, marketers go to where they
think they can get the products easily without
problems. The refineries are working, no doubt,
but we know that the pipelines are not
functioning properly because of vandalism. We
are working with the Federal Government to see
how we can connect, especially Aba and Enugu
up to Makurdi.
“Soon, a lot of things will fall in place.
Considering what they are producing now, if the
pipelines are not in order, then they will not be
able to get products across. However, I’m sure
that the new government, being a government of
change, is working on this issue.”

lunaticfringe:


Just listen to yourself boy!!! Tell me why anybody will take you serious if this is the way you reason...

The least person to tell me how i reason is the person whose handle is Lunatic and Fringe

Sorry if i do not take you seriously

ajebuter:
Another Apc propaganda that is gradually back firing.

Things fall apart when a government is built on lies, propaganda and falsehood.

Did you read the whole story before commenting?
Towards the end of the story we have this:


"In his reaction, the National President,
Independent Petroleum Marketers Association of
Nigeria, Mr. Chinedu Okoronkwo, said the
refineries were working but they had constraints
in terms of supplying products to marketers.
He said, “For now, marketers go to where they
think they can get the products easily without
problems. The refineries are working, no doubt,
but we know that the pipelines are not
functioning properly because of vandalism. We
are working with the Federal Government to see
how we can connect, especially Aba and Enugu
up to Makurdi.
“Soon, a lot of things will fall in place.
Considering what they are producing now, if the
pipelines are not in order, then they will not be
able to get products across. However, I’m sure
that the new government, being a government of
change, is working on this issue.”

ECOTERRORS:
Buhari and his artiste have been giving us a gloomy pix of refineries whereas there pump price is still #100. Please guard yourselve because Nigeria might be in Mars in the next four years with this kind of lies being spread by APc

Did you read the whole story before commenting?
Towards the end of the story we have this:


"In his reaction, the National President,
Independent Petroleum Marketers Association of
Nigeria, Mr. Chinedu Okoronkwo, said the
refineries were working but they had constraints
in terms of supplying products to marketers.
He said, “For now, marketers go to where they
think they can get the products easily without
problems. The refineries are working, no doubt,
but we know that the pipelines are not
functioning properly because of vandalism. We
are working with the Federal Government to see
how we can connect, especially Aba and Enugu
up to Makurdi.
“Soon, a lot of things will fall in place.
Considering what they are producing now, if the
pipelines are not in order, then they will not be
able to get products across. However, I’m sure
that the new government, being a government of
change, is working on this issue.”

The refineries are working, no doubt,
but we know that the pipelines are not
functioning properly because of vandalism. We
are working with the Federal Government to see
how we can connect, especially Aba and Enugu
up to Makurdi.

And some crazy mofo will come up with a silly question of the input of SE region into the Fed acct... Facts from the post...

DaBullIT:


I drove from Ibadan to Ede , Petrol retails at 87 , From Ede to Akure, It's still 87 , Don't know how soon i'll be leaving for ABJ , but all those stations i checked/ bought from not OANDO abeg and any marketer selling above 87 should be reported

Buy with a 5 litres Jerry can and you will understand my drift.

God should intervene. Yesterday it wasn't easy for me to get kerosene. Very Few filling station in Abuja now sell kerosene between N150 to N170 while open market sold N250 per litre. Has kerosene been fully deregulated ? I am concerned because it is the only petroleum product needed even in remote villages.

fctboy:
God should intervene. Yesterday it wasn't easy for me to get kerosene. Very Few filling station in Abuja now sell kerosene between N150 to N170 while open market sold N250 per litre. Has kerosene been fully deregulated ? I am concerned because it is the only petroleum product needed even in remote villages.

In the alternative I think cooking gas is cheaper and economical

Buhari with mouth action ehn!!!

he is trying shaa

jammani:
Now I am beginning to believe that APC is propaganda

mr mumu, where were u when they denied having a hand in the sudden re-opening of the refineries

tucky200:
mr mumu, where were u when they denied having a hand in the sudden re-opening of the refineries

Weere ore ! Must yu abuse?