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IPMAN Claims Nigeria’s Monthly Fuel Subsidy Exceeds N700 Billion

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that the country’s monthly expenditure on fuel subsidies may exceed N700 billion.

This projection was made by Mohammed Shuaibu, the Secretary of IPMAN in Abuja-Suleja, in a statement released on Monday.

Shuaibu’s comments followed the disclosure of data by the Major Oil Marketers Association of Nigeria (MEMAN) last Wednesday, which revealed that the landing cost of petrol was N1,117 per liter as of the previous day.

Shuaibu challenged the accuracy of the figures provided by the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian government regarding fuel subsidy expenditures.

He expressed concern that the official figures might not fully reflect the true cost of the subsidy. “Petrol prices are influenced by global supply and demand factors,” Shuaibu stated.

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“When international prices rise, it affects Nigeria as well. The NNPC, which is the sole importer of petrol, may not be transparent about the actual costs.”

According to Shuaibu, the substantial discrepancy between the reported landing cost of N1,117 per liter and the lower ex-depot price of N585 per liter, set by the NNPC, underscores the potential scale of the subsidy.

He warned that this discrepancy suggests the monthly subsidy expenditure could be well over N700 billion. This situation implies that Nigerians should brace for possible increases in fuel pump prices.

In contrast, Heineken Lokpobiri, the Minister of State for Petroleum Resources, has consistently maintained that the fuel subsidy program has been removed.

However, further analysis supports Shuaibu’s concerns. With petrol prices ranging between N617 and N750 per liter, depending on the location, the ex-depot price of N585 per liter results in a subsidy of N532 per liter.

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Given that the Federal Ministry of Petroleum Resources reported a daily consumption of 44.3 million liters in October 2023, this amounts to an estimated daily subsidy cost of N23.57 billion. Over a month, this totals more than N700 billion.

This issue comes at a time of ongoing tension between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over concerns about substandard petroleum products.

Additionally, recent comments from former Kaduna State Governor Mallam Nasir El-Rufai suggest that the current administration, led by President Bola Tinubu, may be spending more on fuel subsidies compared to previous administrations.

Trade Union Congress President Festus Osifo has also hinted at the possibility of a quasi-subsidy being applied to petrol prices, adding to the complexity of the situation.


 

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Hamster Kombat Unveils Interlude Season

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Hamster Kombat ends season 1 and is currently in the process of rewarding tokens. They’ve also started promoting season 2 of the game. As expected, they took a season-ending snapshot of players’ progress as they prepare to launch the HMSTR token and airdrop on September 26. What’s next is an “interlude” season.

During this interlude, many familiar features are temporarily removed while developers calculate players’ airdrop allocations. In-game coins are gone, and tapping the main screen no longer earns rewards. Additionally, crypto exchange upgrades and the Mine menu have been removed for now.


 

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Fire Breaks Out at Governor Mbah’s Fuel Station, Arson Suspected

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A fuel station owned by Enugu State Governor, Peter Mbah, was engulfed in flames early Friday morning, reportedly due to an attack by unidentified individuals.

The station, Pinnacle Oil, located along Agbani Road in Enugu, was the target of an arson attack carried out by assailants who arrived in a Toyota Corolla.

Eyewitnesses revealed that the fire rapidly spread, consuming at least four vehicles in the vicinity.

The inferno led to widespread panic among residents and commuters in the area.

Firefighters from both the federal and state fire services responded swiftly, managing to contain the flames before they could cause further destruction.

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The Enugu State Police Command, while confirming the incident, hinted at a different possible cause for the fire.

In a statement issued by the command’s spokesperson, DSP Daniel Ndukwe, it was suggested that the blaze may have started due to fuel leakage from one of the cars queued up to buy fuel at the station.

Although the fire caused extensive damage to the station and several vehicles, no casualties were reported.

The Commissioner of Police, CP Kanayo Uzuegbu, who was present at the scene, assured the public that a thorough investigation would be conducted.

He instructed the Deputy Commissioner of Police overseeing the State Criminal Investigation Department (CID) to lead the inquiry into the fire to determine its true cause and those responsible.

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As a result of the incident, security operatives have barricaded the Agbani Road axis, where the station is located, to maintain order and ensure public safety.

While normalcy has been restored, the incident has raised concerns about safety and security in the area.

Residents are hopeful that the investigation will uncover the facts surrounding the fire and bring the culprits to justice.


 

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CORAN Opposes Petrol Imports as Marketers Shun Dangote Refinery Supply

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The Crude Oil Refiners Association of Nigeria (CORAN) has expressed strong opposition to a recent decision by petroleum marketers to import Premium Motor Spirit (PMS) despite the availability of petrol from Dangote Refinery.

Eche Idoko, the Publicity Secretary of CORAN, voiced these concerns in a statement, criticizing the marketers for turning to imports when a domestic option is readily accessible.

This reaction comes as reports indicate that 141 million litres of PMS are being transported to Nigeria by oil vessels following the recent deregulation of the downstream oil sector by the Federal Government.

The Nigerian National Petroleum Company Limited (NNPCL) has announced new pricing for petrol at its retail outlets across the country, with prices ranging from N950 to N1,019.22 per litre, depending on the location.

This pricing adjustment followed the successful lifting of petrol from the Dangote Refinery.

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A price dispute has arisen between Dangote Refinery and NNPCL, with NNPC claiming it purchased Dangote petrol at N898 per litre, a statement that the Lagos-based refinery disputes.

The recent shift towards importing petrol by marketers, who seem dissatisfied with Dangote’s pricing structure, has further fueled tensions.

Idoko raised concerns over the quality of imported petrol, alleging that some of it is substandard and may have been blended in places like Malta or Togo.

He emphasized that this new regime could offer better pricing than the previously imported products, which have not met the necessary standards.

He also addressed fears among marketers that Dangote could dominate the market, asserting that such concerns have been mitigated by Dangote’s commitment to join CORAN.

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Idoko highlighted that the current regulatory framework, including the Petroleum Industry Act, ensures that no single entity can monopolize the market.

In response to the importation issue, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that any imported petrol must undergo three rigorous tests before it can be sold in Nigeria.

George Ene-Ita, a spokesperson for NMDPRA, reiterated that while marketers with import licenses are permitted to import PMS, the products must meet specific quality standards.

Earlier this year, Aliko Dangote, President of Dangote Group, expressed confidence that the start of operations at his refinery would ultimately eliminate the need for fuel imports in Nigeria, positioning the refinery as a key player in the nation’s petroleum landscape.


 

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