How NNPC decision to no longer be only supplier of petrol go benefit Nigerians - Energy expert

Nigerian National Petroleum Company Limited (NNPCL) say dem no be di only supplier of petrol again into di kontri.

Di company tok dis one for one line statement dem post on top dia official Twitter handle.

Dis dey come two weeks afta di federal goment announce di removal fuel subsidy.

”NNPC Limited no be di sole supplier of petrol,” dem tok.

To add more informate on dis matter di Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also announce say three oil marketers go begin import petrol into Nigeria from July 2023.

NMDPRA tok afta one ogbonge meeting wit oil marketers, wia dem tok say Nigerian National Petroleum Company Limited (NNPCL) no longer be di only importer of petrol.

Di move na to introduce competition for di petrol importation sector and e fit also make fuel available and control pricing of petrol for di kontri.

Wetin shelle for di oil marketers meeting

Authority for di oil sector bin meet wit oil marketing companies on Wednesday 14 June to raise awareness of wetin be di requirements of di Petroleum Industry Act (PIA).

Di PIA get to do wit di full deregulation and importation of petrol.

Di Authority Chief Executive, Engr Farouk Ahmed hala on di urgent need for product standardization to prevent situation wia consumers fit dey cheated by di importation of off-spec products into di kontri.

E also tok say NNPC don agree to reduce petrol import volume - odas go get chance to bring dia own but dem gatz obey di set guidelines.

Ahmed also tok say di oil marketers go also cooperate wit security agencies, so dat supply and distribution of petrol go flow wella nationwide.

NNPC stand for oil importation

NNPC bin don already confam say di limited no longer be di only supplier of petrol.

Also for early month of June, Group Chief Executive Officer of NNPCL, Mele Kyari bin tok for one interview say private companies for Nigeria go soon begin import petrol into di kontri

Kyari bin add say di move na sake of say NNPCL get plans to end crude oil swap contracts and switch to cash payments for petrol imports.

“For di last four months, we practically don terminate all Direct Sale Direct Purchase (DSDP) contracts. And we now get one arms-length process wia we fit pay cash for di imports.

“Dis na di first time wey NNPC say dem dey terminate crude swap contracts. By importing less gasoline as private companies import di bulk, NNPC go dey able to pay for wit cash,” e tok.

'Fuel go dey cheaper', wetin dis one mean?

Nigerians go soon begin enjoy low price of petrol now wey three oil marketers fit import fuel into di kontri, Energy expert, Dr Joseph Obene tok.

Di news say di mainstream and downstream regulatory agency for di Federal goment don sign and approve - or make we say grant importation licence to three marketers na good news, e add.

E say di implication be say e don break down one long time monopoly of NNPC.

“Make we try remember say over di past 10 to 15 years NNPC be di only importer of all refined petroleum product to Nigeria and most of us bin don dey criticise am”.

“Now we go see healthy competition for di industry, marketers go get choice to buy from importer A or importer B as against di monopoly wey NNPC enjoy”.

Dr Obene further tok say make Nigerians try remember wetin happun for 2022 wen NNPC bin import one bad fuel into di kontri and pipo no get choice dan to buy dat kind bad fuel wey spoil plenti machines and equipment.

“Federal goment bin apologise and tok say dem go compensate, till date we never see any compensation”.

E explain say dat na di disadvantage of monopoly.

'Marketers go now fit choose wia to buy from'

Obene further tok say from July, marketers go now get several options as dem go fit choose wia to buy for better price.

E add say to give approval to just three marketers to join NNPC go mean say dem be only four no dey enof.

“E get wetin we dey call price rigging wia di players for di industry fit come togeda and decide to exploit pipo.

“But I go advise make dem give approval to plenti operators like over 20, Nigerians go get di best price.

Dis one na proof say NNPC go sit-up as dem fit no dey able to win competition against private firm.

“But di important tin be say price go drop, dis na sake of say di basic market for NNPC na Amsterdam a nd Netherland and most of us don criticise dat very market”.

Di reason be say, oda kontris dey sell less dan di Netherland market but we no sabi why NNPC choose to dey buy from dat market.

But now different products go dey land for Nigeria for different rate once marketers dey buy from wia dem fit, sometin wey NNPC no fit do sake of say dem bi federal goment entity and dem ghats consider bilateral relationship, Obene add.

Fuel subsidy meaning

Many pipo dey ask wetin be fuel subsidy and how di removal go take affect Nigerians.

Fuel subsidy na form of goment intervention to reduce di cost of fuel.

Goment go provide direct financial support to oil companies, so dat dem go fit reduce di price of di product to consumers (Nigerians) to make am dey affordable for dem.

Nigeria na one of Africa largest producers of crude oil, and e dey rely heavily on dis resource for dia economic growth.

Sake of say Nigeria no get refinery, dem gatz export dia crude oil go anoda kontri come import di refined crude oil. Di money wey dem go take refine dis crude oil dey expensive and make e for no be burden on consumers, goment dey pay some part of di money to marketers.

Therefore goment dey control di price and na di amount dem tell marketers to sell, dem go sell am.

Dis na how common pipo dey benefit from goment, according to dem.

Di official reason for oil subsidies na to reduce di impact of rising global oil prices on Nigerians.

Fuel subsidy don dey di kontri since di 1970s.

Dem institutionalise am for 1977, under di regime of General Olusegun Obasanjo wit di promulgation of di Price Control Act wey make am illegal for some products (including petrol) to dey sold above di regulated price.

Between 2006-2018, Nigeria don spend about 10 trillion Naira on petroleum subsidies.