Ex-Depot Price of Petrol Stable Despite Drop in Pump Price
Despite the slight reduction in the pump price of petrol by some oil marketers and the Nigerian National Petroleum Corporation (NNPC) in many retail outlets across the country, the ex-depot price of the product has remained stable, THISDAY’s investigation has revealed.
It was also gathered that even though some marketers and the NNPC have reduced the pump price to N143, the new price is still within the official price range of N135 –N145 approved by the federal government on May 11, 2016.
The market survey conducted by THISDAY at the weekend showed that all the 12 depots that had petrol in Lagos were selling at between N130.50 and N132. 50, which was the same price range before the NNPC and some marketers reduced the pump price from N145 to N143 per litre.
Investigation further showed that both the ex-depot price range and the N143 pump are still within the official range of prices recommended by the Petroleum Products Pricing Regulatory Agency (PPPRA) on May 11, 2016 when the N145 pump price took effect.
The agency had recommended a retail price band of N135 - N145 per litre for filling stations and indicative ex-depot price of between N123.28 and N133.28 per litre for product that is in the depots, via circular No. A.4/9/017/C.2/IV/690.
However, for petrol that is still in the mother vessel at the high sea, the ex-depot price or coastal price was fixed at N116.63 –N126.63 per litre as the marketer will incur additional expenses to hire daughter vessels to lift the product to the depots.
Some marketers, who spoke to THISDAY at the weekend, argued that N145 was not the only official pump price but the maximum limit, adding that unless the price goes down below the lower limit of N135 per litre, the country would not celebrate drop in pump price.
“When the PPPRA fixed the price range at N135 –N145, the thinking was that for market competitiveness, products should be selling at different pump prices within this official range depending on the location of the retail outlets and the part of the country. But
United States oil firm, ExxonMobil has unveiled plans to raise its budget for funding joint venture (JV) operations in Nigeria’s oil and gas fields with the Nigerian National Petroleum Corporation (NNPC) in 2018.
ExxonMobil’s Senior VicePresident, Mr. Jack Williams stated this recently in Abuja when he visited the Group Managing Director of the NNPC, Dr. Maikanti Baru.
Williams did not disclose the total financial commitment the firm would commit to Nigeria in 2018, but affirmed in a statement by the Group General Manager, Public Affairs of the NNPC, Mr. Ndu Ughamadu, that ExxonMobil is also committed to ending gas flare in Nigeria.
According to the statement, the NNPC and ExxonMobil - its partner in upstream joint venture oil operation, indicated they will commit hugely to ending gas flaring at the Qua Iboe oil terminal, to be able to provide sufficient gas for the independent power plant that is expected to be built there.
Similarly, both firms are seeking new measures to expand their existing operational portfolio with a view to increasing crude oil production and availability of gas for power generation in Nigeria.
According to the statement, Baru welcomed Williams and a high-powered delegation from ExxonMobil to his office.
Baru, according to the statement, said the joint venture with ExxonMobil was before now the highest producer of crude oil in the country, and would now make a rebound.
He said the NNPC and ExxonMobil, held discussions on major operational issues like improved drilling to increase production and refurbishment of crude oil pipelines as well as supply of gas to the planned Qua Iboe Independent Power Plant among others.
“More importantly, we also discussed their recommitment to supply gas to the domestic market and this is something that is very positive and they are willing; we would quickly roll-out the programme to ensure that sufficient gas comes in for the IPP. We also secured a commitment from them to end gas flare at QIT and other production areas,” said Baru, in the statement.
The statement also quoted Williams to have described the meeting to have been very fruitful, and that ExxonMobil was committed to growing its production in Nigeria safely and with lots of integrity.
He noted that ExxonMobil would increase its 2018 joint venture budget for its operations in Nigeria, to underscore its commitment to Nigeria.
Meanwhile, a June 2017, monthly operations report of the NNPC has disclosed that the country flared up to 663.31 million standard cubic feet of gas per day (mmscf/d) within the period, to give out a daily gas flare rate of 8.78 per cent for the month.