Tag: Petrol

  • NNPC records N234.722b petrol sale

    NNPC records N234.722b petrol sale

    The Nigerian National Petroleum Corporation (NNPC) recorded about N234,722,222,150 from the sale of the Premium Motor Spirit (PMS) in January, this year.

    It supplied 1.44billion litres in the month that was 46.30 million litres of the product daily.

    In the month under review, a litre was least sold for N162.50.


    NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, made this known in a statement on the data of the January edition of the NNPC Monthly Financial and Operations Report (MFOR).

    He said: “To guarantee energy security, the corporation also supplied a total of 1.44billion litres of Premium Motor Spirit (petrol), translating to 46.30million litres/day, across the country in the period under review.”

    According to the statement, in the gas sector, a total of 223.55billion Cubic Feet (BCF) of natural gas was produced in January 2021, translating to an average daily production of 7,220.22 million Standard Cubic Feet per day (mmscfd).

    It recalled that the 223.55BCF gas production figure also represents a 4.79 per cent increase over output last December.

    NNPC said also, the daily average natural gas supply to gas power plants increased by 2.38 per cent to 836mmscfd, equivalent to power generation of 3,415Mw.

    It added that for the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

    The corporation however announced a 37.21 per cent decrease in cases of pipeline vandalism across the country in the month of January 2021.

    The report indicates that a total of 27 pipeline points were vandalized in January 2021 down from the 43 points recorded in December 2020.

    The Mosimi Area accounted for 74 per cent of the vandalized points while Kaduna Area and Port Harcourt accounted for the remaining 22 per cent and 4 per cent respectively.

    The statement read: “However, NNPC is continuously working in collaboration with the local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

    “Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20 per cent, 19.97 per cent and 14.83 per cent respectively to the total national gas production.

    “Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

    “This translates to a total supply of 1,428.65mmscfd of gas to the domestic market and 3,385.57mmscfd to the export market in the month under review.

    “This indicates that 67.15 per cent of the daily gas output was commercialized while the balance of 32.85 per cent was re-injected, used as upstream fuel, or flared.

    “Gas flare rate was 7.73 per cent for the month under review (i.e. 554.01mmscfd) compared with average gas flare rate of 7.19 per cent (i.e. 539.69mmscfd) for the period of January 2020 to January 2021.

    “The 66th edition of the NNPC MFOR highlights NNPC’s activities for the period of January 2020 to January 2021. It is published in line with the Corporation’s commitment to the tenets of Transparency, Accountability and Performance Excellence (TAPE).

    “The Corporation has sustained effective communication with its stakeholders through the publication of the report on its website, independent online news platforms and national dailies”.

  • We Pay N120bn Monthly To Subsidise Petrol, NNPC Laments

    We Pay N120bn Monthly To Subsidise Petrol, NNPC Laments

    The Nigerian National Petroleum Corporation (NNPC) says it pays N120 billion every month to subsidise Premium Motor Spirit (PMS), also known as petrol.

    NNPC Group General Manager (GMD), Mele Kyari, disclosed this at the weekly presidential ministerial media briefing on Thursday at the State House in Abuja, the nation’s capital.

    He lamented that the burden placed upon NNPC by the ongoing subsidisation of the cost of petrol in the country was overwhelming.

    As a result of the huge sum being paid, Kyari stated that Nigerians would have to pay the actual cost for petrol sooner or later.

    He decided that the product was currently being sold below the cost of importation, causing the NNPC to pay the difference.

    The NNPC boss, however, refrained from calling the shortfall payment a subsidy, stressing that the fund was paid to maintain the pump price of petrol at the current level.

    He stated that the NNPC can no longer bear the monumental cost, saying market forces must be allowed to determine the pump price of petrol in the country in the nearest future.

    When asked when the corporation would stop subsidising petrol, Kyari declined to give a specific date.

    The Minister of State for Petroleum Resources, Timipre Sylva, also gave an update on happenings in the nation’s petroleum sector.

    He disclosed that the Petroleum Industry Bill (PIB) currently before the National Assembly would be passed by April 2021.

    Sylva told reporters that the bill would not suffer a setback, going by all indications from the leadership of the National Assembly.

    He stressed the importance for Nigeria to steer away from oil to gas, adding that the 20-year-old PIB would attract a lot of investments to the gas sector.

    On the issue of having functional refineries in the country, Sylva faulted Senator Dino Melaye’s analysis of the proposed rehabilitation of the Port Harcourt refinery.

    According to him, Melaye is no expert on refinery and should, therefore, not impress his views on an area he is not conversant with.

    The minister said the Federal Government remained committed to its promise to deliver a functional refinery to Nigerians in due time.

  • FG signs MoU to import petrol from Niger

    FG signs MoU to import petrol from Niger

    The Federal Government of Nigeria and the Republic of Niger have signed a Memorandum of Understanding (MoU) for petroleum products transportation and storage.

    The ministry of Petroleum Resources disclosed this in a statement on Thursday.

    The statement added that the signing climaxed the bilateral agreements between President Muhammadu Buhari and President Mahamadou Issoufou.

    The MoU was signed by the GMD NNPC, Mallam Mele Kyari and the Director General of SONIDEP, Mr. Alio Toune under the supervision of the Ministers of State for Petroleum, Chief Timipre Sylva and Mr. Foumakoye Gado, respectively with the Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim in attendance.

    Talks have been on-going between two countries for over four months – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), on petroleum products transportation and storage.

    Niger Republic’s Soraz Refinery in Zinder, some 260km from the Nigerian border, has an installed refining capacity of 20,000 barrels per day.

    Niger’s total domestic requirement is about 5,000bpd, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

    Speaking shortly after the MoU signing, Sylva expressed delight over the development, describing it as another huge step in developing trade relations between both countries.

    “This is a major step forward. Niger Republic has some excess products which needs to be evacuated. Nigeria has the market for these products. Therefore, this is going to be a win-win relation for both countries. My hope is that this is going to be the beginning of deepening trade relations between Niger Republic and Nigeria,” the Minister added.

  • Petrol sold to Nigeria from Europe ‘dirtier’ than black market ‘bush’ fuel

    Petrol sold to Nigeria from Europe ‘dirtier’ than black market ‘bush’ fuel

    Black market fuel made from stolen oil in rudimentary “bush” refineries hidden deep in the creeks and swamps of the Niger delta is less polluting than the highly toxic diesel and petrol that Europe exports to Nigeria, new laboratory analysis has found.

    Shell, Exxon, Chevron and other major oil companies extract and export up to 2m barrels a day of high quality, low sulphur “Bonny Light” crude from the Niger delta. But very little of this oil is refined in the country because its four state-owned refineries are dysfunctional or have closed.

    Instead, international dealers export to Nigeria around 900,000 tonnes a year of low-grade, “dirty” fuel, made in Dutch, Belgian and other European refineries, and hundreds of small-scale artisanal refineries produce large quantities of illegal fuel from oil stolen from the network of oil pipelines that criss-cross the Niger delta.

    The net result, says international resource watchdog group Stakeholder Democracy Network (SDN) in a new report, is that Nigeria has some of the worst air pollution in the world, with dense clouds of choking soot hanging over gridlocked cities leading to a rise in serious health conditions as well as damaged vehicles.

    The extreme toxicity of the “official” fuel exported from Europe surprised researchers who took samples of diesel sold in government-licensed filling stations in Port Harcourt and Lagos. They found that on average the fuel exceeded EU pollution limits by as much as 204 times, and by 43 times the level for gasoline.

    Laboratory analysis also showed that the black market fuel was highly polluting but of a higher quality than the imported diesel and gasoline. The average “unofficial” diesel tested exceeded the level of EU sulphur standards 152 times, and 40 times the level for gasoline.

    “Our research suggests that Nigeria is having dirty fuel dumped on it that cannot be sold to other countries with higher and better implemented standards. The situation is so bad that the average diesels sampled are of an even lower quality that that produced by artisanal refining camps in the creeks of the Niger delta,” said Florence Kayemba, SDN programme manager.

    With more than 11m, mostly old, cars imported from Europe and Japan on the roads, and hundreds of thousands of inefficient generators used by households and businesses for electricity, Nigeria ranks fourth in the world for deaths caused by air pollution. It has been estimated that 114,000 people die prematurely from air pollution each year.

    The air quality in cities like Port Harcourt, Aba, Onitsha and Kaduna has reached crisis levels of pollution in recent years, and there is mounting evidence of rising asthma, lung, heart and respiratory diseases.

    More than half of developing countries, mainly in Africa and Latin America, still use high-sulphur fuels which have long been illegal to burn in western countries. In Nigeria the practice is encouraged by an opaque fuel subsidy system that keeps prices relatively low at the pumps, but is widely thought to fuel corruption. Refineries in Europe are allowed to make the fuel if countries agree to accept it.

    The SDN report, part-funded by the UK Foreign Office’s anti-corruption conflict, stability and security fund, calculates that around half the air pollution in Port Harcourt, a city of more than 3 million people, comes from the burning of official and unofficial fuel. The rest comes from nearby gas flaring, other industries, and the burning of rubbish.

    Levels of particulate matter in Port Harcourt and Lagos, says SDN, are 20% worse than Delhi in India, the most polluted capital city in the world, where emergency levels of photochemical smogs are common. In 2016, the River Niger port city of Onitsha was said by the World Health Organization to be the world’s most polluted city, the concentration of PM10s – soot particles – was recorded at 594 micrograms per cubic metre; compared with the WHO safe limit of 66.

    “The Niger delta already suffers environmental, health and livelihood impacts from decades of oil spill pollution, gas flaring and artisanal refining. This research indicates that it not only experiences the repercussions of producing crude oil, but also in the consumption of dirty official and unofficial fuels,” said the report.

    According to industry sources which track legal and illegal oil cargo movements – who asked to remain anonymous – around 80% of Nigeria’s petroleum products come from the Netherlands and Belgium. The two countries have some of Europe’s largest refineries.

    “This is even more concerning at a time when Nigeria is facing an outbreak of coronavirus. High levels of pollution and pre-existing respiratory and other health conditions may increase the risk that Covid-19 poses to the health of the population,” said Matthew Halstead of Noctis, which conducted the laboratory research.

    The SDN report substantiates allegations made in a 2016 Public Eye investigation and a Dutch government report in 2018, that European refineries and commodity brokers were blending crude oil with benzene and other carcinogenic chemicals to create fuels hundreds of times over European pollution limits for the weakly-regulated African market. This was said to be causing significant particulate pollution, damage to vehicles, and adverse health impacts for local populations.

    Nigeria, along with Togo, Ghana, Ivory Coast and Benin promised in 2017 to stop the imports of “Africa quality” oil products as part of a UN environment programme initiative. But while Ghana has acted, reducing sulphur from 3,000 to 50 parts per million, Nigeria has argued that it needs more time to adapt.