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Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% - Politics - Nairaland

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Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by iwaeda: 11:12pm On Apr 01
The Federal Government, yesterday, increased the wholesale price of gas to power plants by 11 percent from $2.18 per MMBTU to $2.42/mmbtu (Million British Thermal Unit), leaving power generation companies with additional cost.


The gas companies had since January this year reduced supply to power plants following years unpaid invoices that amounting to over $1.2 billion. The government intervened last month by paying $120 million to the companies, as power supply across the dwindled.



The government in notice issued the Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr Farouk Ahmed also raised the commercial wholesale gas price from $2.42/mmbtu to $2.92/mmbtu.

The Authonty in the notice titled “Announcement on establishment of the 2024 domestic base price and applicable wholesale price of natural gas fot strategic sector”, said the Petroleum Industry Act, 2021, gave it the powers to set domestic base prices for the local market.

“In Ine with Section 167, the Third and Fourth Schedule of the PIA 2021, the Nigerian Mdstream & Downstream Petroleum Regulatory Authority (NMDPRA) is mandated to determine the Domestic Base Price (DBP) and the marketable wholesale price of natural gas supplied to the strategic sectors”.

It added: “The Domestic Base Price at the morketable gas delivery point under Section 167 (1) and other provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles: a) The price must be of a level to bring forward sufficient natural gas supplies for the domestic market on a voluntary basis by the upstream producers. b) The pnce shail not be higher than the average of similar natural gas prices n major emerging countnes that are significant producers of natural gas. c) Lowest cost of gas supply based on three tier cost of supply framework. d)Market related prices tied to International Benchmarks.

“Accordingly, after due consultation with key stakeholders and toking into cognisance the provisions of the PIA, as well as the gazetted Gas Pricing and Domestic Demand Regulations. the NMDPRA hereby establishes the Year 2024 Domestic Base Price as USD 2.42 / MMBTU and wholesale prices of natural gas in the strategic sector”.


Reacting to the hike in gas price to power plants, the Executive Director, PowerUp Nigeria, Mr. Adetayo Adegbemle said the increase would raise the cost power generation as gas was a major fuel for power plants.

Adegbemle in a note to Vanguard wrote: “The major fuel stock for our power generation is gas, and increment in gas pricing will definitely impact cost of production of electricity. Federal Government just use to hike its (unpaid) ‘subsidy ticket’, it was already battling Foreign Exchange floating policy impact and now just decided to increase price of Gas.


“I think the works of the Power Minister is cut out for him now, as the subsidy the Federal Government now has to cover just increased, unless they allow the market to charge a full cost reflective tariff.


“This further brings back our argument that the subsidy on electricity tariff is unsustainable. When the Minister of Power was insisting on subsidy on electricity tariff, he was taking the “easy path” out of the problem.


“When he was muting the idea of paying for gas in Naira, you will recall we called him out, even the gas does not belong to the Federal Government. But now, we all need to face the reality”, he added.

https://www.vanguardngr.com/2024/04/energy-crisis-more-troubles-for-power-plants-as-fg-increases-gas-price-by-11/

4 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by ishayaauta(m): 11:15pm On Apr 01
Wahala
Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by iwaeda: 11:30pm On Apr 01
The poor getting poorer under Tinubu's APC. grin grin grin grin

39 Likes 7 Shares

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Chicagograduate(m): 11:42pm On Apr 01
How can the political class who claim government is for the people,is now making life difficult for them?
A product that is made in Nigeria is being charged in dollar.This is the same Tinubu s government that is invading bureau change s premises and even oarrading them before efcc for increasing the exchange of the dollar to Naira arbitrary.
These funds being generated will be stolen during budget signing.

39 Likes 2 Shares

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Tayorshd87: 1:25am On Apr 02
Na wá ooo

2 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by HenryThegreat1(m): 4:01am On Apr 02
Tinubu is completely against Nigeria people.

34 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by omowolewa: 4:19am On Apr 02
Troubles for power plants or for power customers?

12 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by DatNiggaDaz: 4:25am On Apr 02
Tinubulation. Era of more hopelessness & misery.

Nothing good from bulaba

30 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Gbadugbakun(m): 7:18am On Apr 02
Tariff increment loading. undecided

6 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Brendaniel: 7:19am On Apr 02
Some Nigerians still don't know who they are dealing with yet...

How can you be lied to for 8 years and still want to believe the person that lied to you for another 8 years, if I say some things now some people will say I hate Nigeria but it is the truth...

helinues:
Toh

It is not only Toh it is Thanos, either you people are extremely wicked or you have no idea the nonsense you people have done to Nigeria by supporting Tinubu....

17 Likes 2 Shares

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by helinues: 7:19am On Apr 02
Toh
Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by chukiz(m): 7:20am On Apr 02
This is just the beginning, Tinubu will finished Nigeria to the point of no return...

6 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by DIVINEEVIDENCE: 7:21am On Apr 02
Una wen beat and stab and threaten people during elections, shey appointments and contracts dey reach una steady?

Una wen collect money to disrupt due process and insult others on social media, shey una still dey chop election allawee?

Three years from now, sane Nigerians will warn you about another slowpoke and you'll still do it again.

Stockholm patients.

15 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Benrosaria(m): 7:21am On Apr 02
Why the Bleep in this life are we fucking using MMBTU and still in dollars.

We don't even have nothing as a contribution to the growth and development of the world

Aaah who do us this one no go live this life long

5 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Blaze14k: 7:22am On Apr 02
Oya Nigeria will be great crew where are you. Una never suffer finish?

3 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Lovenorth: 7:22am On Apr 02
Welcome to the drug pusher's administration

8 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by YoungLionken(m): 7:23am On Apr 02
Where's the money accumulated from subsidy angry!?

Normally, the poor will suffer severely for it as usual sad..

BAT and his cohorts are nothing but cold blooded criminally minded druglords sad!!!

7 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by iceking128(m): 7:23am On Apr 02
No light for my area since 4days....

4 Likes 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Kukutente23: 7:23am On Apr 02
Hehehe

Rehoboams in government
Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by bigdammyj: 7:23am On Apr 02
Noted.
Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Benrosaria(m): 7:24am On Apr 02
Brendaniel:
Some Nigerians still don't know who they are dealing with yet...

How can you be lied to for 8 years and still want to believe the person that lied to you for another 8 years, if I say some things now some people will say I hate Nigeria but it is the truth...

I
OG we are living in lies. If we can accept the biggest lie of the world (Bible) then every other thing can be accepted

1 Like 1 Share

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Jokerman(m): 7:24am On Apr 02
More increase in purchase of units then... 😭

2 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by isaachi4u: 7:25am On Apr 02
Tinubu no want to gree for any body. If he mess . He will travel.

1 Like

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by malali: 7:26am On Apr 02
Ramp up the production faster

Sit back, we are about to make some real revenue from the sales.

The Middle east is coming alive.
Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Iykopee(m): 7:26am On Apr 02
Now this is another demonic action. By the time the drug pusher leaves office, more paupers would litter the poverty space.

4 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Sunnycliff(m): 7:28am On Apr 02
They will tell you, we are the one making dollars to rise because we de chase dollars. Now why should Nigeria sell Gas to Nigeria Power companies in Dollars rather than naira? Is Dollars our official currency?

8 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by JoeEeL(m): 7:28am On Apr 02
People would look back and someday say "I miss buhari's era".

That's like d most unimaginable thing but today its happening. cheesy

1 Like

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Okuruman(m): 7:32am On Apr 02
I give up on Nigeria govt,there is no hope for a better Nigeria.

1 Like

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by NFBI: 7:34am On Apr 02
Hopeless country.. steady light is still a dream in 2024

1 Like

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by Confirm4real(m): 7:34am On Apr 02
Wetin person dey enjoy for dis Corntree sef







Animals in Government positions...

1 Like

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by ayindejimmy(m): 7:35am On Apr 02
This FG is confused and irresponsible

Is this the period to increase gas price ?
I thought the whole process had been deregulated before .

Why controlling the price again

3 Likes

Re: Energy Crisis: More Troubles For Power Plants As FG Increases Gas Price By 11% by BigDawsNet: 7:35am On Apr 02
When will Nigerians celebrate constant light? I'm not talking bt people living in banana island oh!

1 Like

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