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Imminent Fuel Increase as Petrol Landing Cost Rises to ₦1,117 Per Litre

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Fuel Pump

 

 

The landing cost of Premium Motor Spirit, also known as petrol, was N1,117/litre as of Tuesday, July 16, 2024, the Major Energies Marketers Association of Nigeria announced on Wednesday.

MEMAN disclosed this during a webinar with journalists on Wednesday.

The association revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre.

Reports indicate that the N1,117 landing cost of petrol is far above the pump price of the product in Nigeria.

At the moment, filling stations operated by the Nigerian National Petroleum Company Limited and those of the major marketers sell PMS at between N617/litre and N660/litre, while independent marketers sell for N700/litre or more.

NNPC, the sole importer of petrol into Nigeria, has consistently denied subsidising the cost of PMS but refused to disclose the landing cost of the product.

Our correspondent reports that the revelation from MEMAN is almost the first from marketers in the industry as the landing cost appears to have been shrouded in secrecy by the importer of PMS.

MEMAN’s Executive Secretary, Clement Isong, said the costs were obtained from independent energy price benchmark providers.

The association maintained that it would release similar information regularly to keep the masses informed.

Recently, independent oil marketers accused private depot owners of hiking the ex-depot price of petrol from N630 to N720/litre.

An expert in the energy sector, Prof Wumi Iledare, told our correspondent in an interview that the cost of PMS in Nigeria was far below the international price, considering the price of diesel.

“The gap between the cost of diesel and petrol in Nigeria is much. It is never like that all over the world. That means something is wrong.

“I don’t know if NNPC is paying subsidies or not, but somebody is absorbing the difference. You can call it under-recovery or subsidy, but the price of petrol today does not reflect the market cost of producing a litre of petrol,” he disclosed.

Iledare added that with the current exchange rate, the price of petrol should not be less than 80 per cent of the price of diesel.

Corroborating this, a Professor of Economics at the University of Ibadan and President of the Nigerian Economics Society, Adeola Adenikinju, said, “The current price of PMS is being subsidised by the government. The government buys at higher rates and sells to us at subsidised rates. That is what they call under-recovery.”

The International Monetary Fund recently warned the Nigerian government to remove what it called implicit fuel and electricity subsidies.

In a report published recently by the IMF, the organisation told Nigeria that the subsidies would guzzle three per cent of the nation’s Gross Domestic Product in 2024 as against one per cent in the year before.

President Bola Tinubu declared the removal of fuel subsidies during his inauguration on May 29, 2023.

IMF noted, however, that “adequate compensatory measures for the poor were not scaled up promptly and subsequently paused over corruption concerns. Capping pump prices below cost reintroduced implicit subsidies by end-2023 to help Nigerians cope with high inflation and exchange rate depreciation.”

However, the NNPC and the Federal Government have vehemently denied subsidising the current price of PMS

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Tinubu Bolsters Nigeria’s Air Defence with New Helicopters

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In a strategic move to reinforce Nigeria’s aerial defence and security infrastructure, President Bola Ahmed Tinubu, represented by Vice President Kashim Shettima, has officially inducted two Augusta 109 S Trekker helicopters into the Nigerian Air Force (NAF) fleet.

The induction ceremony, held today at the Presidential Air Fleet (PAF) Hangar, Nnamdi Azikiwe International Airport, Abuja, signals a significant boost to the country’s air power and operational readiness. Top government officials, military personnel, and dignitaries gathered to witness the event, underscoring its importance in Nigeria’s ongoing efforts to strengthen national security.

Speaking at the ceremony, Vice President Shettima emphasized the administration’s commitment to equipping the armed forces with advanced technology to tackle prevailing security challenges. He commended the NAF for its dedication and resilience in safeguarding the nation, highlighting the crucial role air power plays in counter-terrorism operations, disaster response, and border surveillance.

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The newly inducted Augusta 109 S Trekker helicopters, renowned for their agility and tactical efficiency, are expected to enhance the NAF’s ability to conduct swift air operations, surveillance missions, and rapid response engagements. Military experts believe their deployment will significantly bolster efforts to address insurgency, armed banditry, and other security threats across the country.

Chief of Air Staff, Air Marshal Hassan Abubakar, expressed gratitude to the federal government for its unwavering support in modernizing the Air Force’s fleet. He assured Nigerians that the new additions would be put to optimal use in protecting lives and securing territorial integrity.

As Nigeria continues to confront evolving security challenges, this development marks yet another step toward fortifying its defence capabilities, reinforcing the administration’s commitment to a safer and more secure nation.

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KEDCO Refutes Challawa Manufacturers’ Claims on Power Supply and Tariff

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The management of Kano Electricity Distribution Plc (KEDCO) has strongly refuted allegations made by the Challawa Industrial Manufacturers Association regarding poor electricity supply and high tariffs.

In an official statement released by KEDCO’s Head of Corporate Communication, Sani Bala Sani, the company expressed its dismay over the claims, labeling them as misleading and inaccurate.

The controversy stems from remarks made by Aliyu Mahadi, Secretary of the Challawa Industrial Manufacturers Association, during a recent interview on Channels Television. Mahadi alleged that manufacturers in the Challawa Industrial Area were suffering from inadequate power supply and unreasonably high tariffs. His comments came during a visit by officials from the Niger Delta Power Holding Company (NDPHC) and the National Agency for Science and Engineering Infrastructure (NASENI) to the industrial cluster in Kano.

However, KEDCO has categorically denied these accusations. “From our daily dispatch records, feeders in the Challawa Industrial Area, including the 33kV Coca Cola, 11kV Ceramic, and 11kV NBC, all classified as Band A, have consistently received an average of 23 hours and 45 minutes of supply daily,” KEDCO stated in its response. The company maintains that these records contradict Mahadi’s assertion that manufacturers are receiving Band C-level services despite operating under Band A classification.

KEDCO further clarified that its operations are subject to rigorous oversight from the Nigerian Electricity Regulatory Commission (NERC). “NERC closely monitors and assesses our service level compliance. If Mahadi’s claims were valid, these feeders would have been downgraded as part of the service contract agreements,” the statement read.

In reaffirming its commitment to industrial development, KEDCO emphasized its strategic priority of ensuring stable power supply to social service providers and industrial clusters like Challawa. “Our ultimate goal is to power every home and business within our franchise area. As part of our industrialization and economic empowerment vision, we continue to prioritize reliable electricity for key manufacturing zones,” the company asserted.

Beyond maintaining consistent supply, KEDCO also highlighted its ongoing efforts to mitigate the impact of rising energy costs on small and medium-sized enterprises (SMEs). “Over the past 12 months, we have taken deliberate steps to cushion energy costs for SMEs, recognizing their vital role in local economic growth. By providing manufacturers with power at competitive rates below market costs, we are fostering an enabling environment for innovation and job creation,” KEDCO noted.

In light of the controversy, KEDCO urged customers and stakeholders to verify facts before making public statements that could damage its reputation. “We remain committed to service improvement, investing in network expansion and upgrades to enhance reliability and efficiency,” the statement concluded.

KEDCO’s rebuttal underscores the broader debate over power distribution in Nigeria, as stakeholders continue to demand more accountability and transparency in the sector.

 

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KEDCO, NDPHC to Partner on Improved Power Supply

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The Kano Electricity Distribution Plc. (KEDCO) recently hosted the MD/CEO of the Niger Delta Power Holding Company (NDPHC), Engr. Jennifer Adighije, on a courtesy visit to its corporate headquarters in Kano, as part of efforts to strengthen collaboration to boost power supply for soci0-economic development of the area.

The visit was received with enthusiasm by the Ag. MD/CEO of KEDCO, Dr. Abubakar Shuaibu Jimeta, who used the opportunity to highlight KEDCO’s renewed vision, operational reforms, and commitment to driving sustainable power distribution across its franchise areas.

Welcoming the NDPHC delegation, Dr. Jimeta described the visit as timely and strategic, particularly as KEDCO is repositioning itself to enhance service delivery and transform the company into Nigeria’s leading distribution company by leveraging network investments, digital transformation, and renewable energy projects to facilitate energy transition for enhanced energy security.

“At KEDCO, we are rebuilding trust, modernizing our operations, and strengthening our partnerships to meet the energy demands of our customers. The visit of Engr. Adighije further strengthens the synergy required between key players in the sector,” Dr. Jimeta stated.

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He reiterated KEDCO’s commitment to forging partnerships that address infrastructure gaps, improve power reliability, and support national energy goals.

In her response, Engr. Jennifer Adighije commended KEDCO’s leadership for the warm reception and expressed optimism about the company’s renewed drive under Dr. Jimeta’s stewardship. She emphasized NDPHC’s role in supporting DisCos with embedded generation and infrastructure development, assuring KEDCO of continued collaboration to deliver better outcomes for end-users.

“NDPHC recognizes KEDCO’s strategic role in Nigeria’s economy and the northern power landscape. We are committed to working with KEDCO to ensure that our assets are effectively leveraged to improve supply and expand access,” Engr. Adighije noted.

The visit also featured technical briefings, strategy discussions, and a tour of selected interconnected mini-grid sites, focusing on ways to optimize asset utilization and enhance grid reliability in the region.

As KEDCO continues its transformational journey under the guidance of its core investor, Future Energies Africa (FEA) Ltd., the company sustains proactive engagements with stakeholders across the sector to deliver on its mandate of empowering lives and enabling economic growth through improved power supply.

 

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