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On Wednesday, the Nigerian National Petroleum Corporation announced a reduction in the ex-depot price of petrol from N113.28 per litre to N108 per litre.
Reacting to the development, oil marketers told our correspondent that the reduction was welcomed but added that it would not immediately reflect on the current pump price of petrol.
The Vice President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, said marketers would have to sell their old stock at the current N125 per litre price before effecting any reduction.
He also noted that the Petroleum Products Pricing Regulatory Agency had yet to make any statement on the cost of the commodity, adding that it was not the duty of marketers to announce a new price.
Maigandi said, “The new ex-depot price shows that there is an achievement based on the call for petrol price reduction and right now, both marketers and consumers will be happy.
“This may probably lead to a market situation where we will see a little increase in demand.”
On whether Nigerians should expect a reduction in the N125 per litre pump price soon, Maigandi replied, “The moment you get a reduction in ex-depot price, definitely there will be a corresponding reduction in pump price.
“But the reduction in pump price will not be as urgent as consumers want it to be because most of the marketers still have old stock. They have to finish their old stock before effecting a reduction in pump price.”
When asked to state the price range that the commodity will be dispensed at filling stations following the new N108 per litre ex-depot price, Maigandi said it was not the responsibility of marketers to decide the cost.
“We are waiting for the PPPRA to give the update because they are the ones in charge of products pricing,” he stated.
The spokesperson of PPPRA, Kimchi Apollo, did not answer calls when contacted to speak on the matter.

The nation’s biggest power plant, Egbin, and 10 others saw their output levels reduce by gas constraint on Monday.
The other plants were Omotosho, Olorunsogo, Delta, Geregu II, Sapele II, Olorunsogo II, Omotosho II, Ihovbor II, Okpai IPP and Trans-Amadi IPP.
The nation’s 27 plants generated a total of 3,471.6 megawatts as of 6am on Monday, compared to 3,391.4MW on Sunday, according to the Nigerian Electricity System Operator.
Seven plants did not generate any megawatt of electricity as of 6am on Monday. The idle plants were Sapele II, Olorunsogo II, Ihovbor II, Gbarain, Ibom Power, AES and ASCO.
Egbin, which is located in Lagos, generated 540MW as of 6am on Monday, as one of its units, ST4, was said to be out due to gas constraint.
Omotosho’s output stood at 122.8MW as four of its units, GT1, GT2, GT3 and GT7, were out due to gas constraint.
Five units at Olorunsogo were down because of gas issue, reducing its output to 90.5MW, while Delta generated 282MW as one of its unit was out as a result of gas.
Geregu II produced 80MW (two units hit by gas constraint), while Omotosho II generated 95.6MW (two units affected).
Okpai’s output level stood at 158MW and Trans-Amadi produced 62.9MW, as one each of their units were idle because of gas shortage.
The nation generates most of its electricity from gas-fired power plants, while output from hydropower plants makes up about 30 per cent of the total generation.
The system operator put the nation’s installed generation capacity at 12,910.40MW; available capacity at 7,652.60MW; transmission wheeling capacity at 8,100MW; and the peak generation ever attained at 5,375MW.
The sector is plagued by problems of gas supply shortages, limited distribution networks, limited transmission line capacity, huge metering gap, electricity theft as well as high technical and commercial losses, among others.

Most communities to Oil Mining Lease (OML) 42 in Niger Delta have demanded the exit of Neconde/Nestoil Amt JV, operators of the asset, from their land for ‘debts and continuous breach of agreements’.

The communities also called on the Nigeria Petroleum Development Company (NPDC) to take over management of the asset.
In a letter to President Muhammadu Buhari, the 14 communities accused the company of repeatedly failing and breaching agreements since it began operations in 2012.
They vowed to resist any move against their position, saying since the firm arrived, peace had eluded the areas.
Signatories to the letter include Eyiangho Felix (Kantu); Chief Aribogha Johnny (Odidi); Austine Onuyesan (Omadino); Chief Samson Oyimi (Ajuju); Kingsley A. Oturubo (Okerenkoko); Powede Uyadonghan
(Kokodiagbene); Oluba Isaac (Akpata-Gbegbe) and Daniel Edede (Ekpemu).
Others are Akasa Isaac (Batan); Victor Tonlagha (Egwa); Tete Augustine (Egbokodo); Billy Ekele (Omamuminogho); Clement Tekedor (Egwa II) and Dekawei Akasa (Eweregbene).
According to the letter, efforts by concerned authorities to get Neconde/Nestoil Amt JV to attend to the issues were unsuccessful.
The letter reads: “NPDC should manage assets of OML-42 till further notice, before any other competent, reliable and human–oriented operator comes.
“From the above facts …among others, the entire OML-42 communities have irrevocably declared that Neconde/AMT JV must leave our land now. We are prepared to die if there is any resistance or counter force to suppress us in our fathers’ land.
“This demand is expedient to ensure our continuous existence. We are dying in silence despite our outcry to concerned authorities caused by the operators without solutions.
“As an antagonist to Corporate Social Responsibilities (CSR), since 2012 till date, the Neconde/Nestoil/AMT JV had failed to perform its CSR to its host communities with unending excuses, showing ardent enmity to host communities’ development.”
The communities last year shut down flow stations operated by the company, making the country lose over 80,000 barrels of crude oil.

Saudi Arabia said Monday it had asked oil giant Aramco to cut its output by an additional one million barrels per day from June, to support prices that have crashed during the coronavirus crisis.
The move will reduce the production of the world’s biggest crude exporter to 7.5 million bpd, the energy ministry said in a statement cited by the official Saudi Press Agency.
Neighbouring Kuwait’s Oil Minister Khaled al-Fadhel said separately that his country would cut an additional 80,000 bpd to support the
Saudi initiative.
“Kuwait supports the efforts of Saudi Arabia to restore balance to the oil market,” Fadhel said in a statement on Kuwait News Agency.
OPEC and its allies in the OPEC+ group agreed last month to cut production by a record 9.7 million bpd while other producers pledged to reduce their output by around 3.7 million bpd.
Under the deal, Saudi Arabia’s daily production was cut to 8.5 million bpd, the lowest in more than a decade.
Riyadh said the aim of the additional cut was to push OPEC+ members “and other producing nations to comply with committed production cuts and make additional reductions” to stabilise the global oil market, the energy ministry said.
Despite a first round of massive cuts which kicked in on May 1, oil prices remain extremely low, losing around two-thirds of their value this year due to a coronavirus-driven slump in demand.
Prices were further dampened in April by a price war between Russia and Saudi Arabia during which Riyadh’s production soared to a record 12.3 million bpd, pushing stockpiles to unsustainably high levels.
The ministry said that with the latest production curb, the kingdom would have cut 4.8 million bpd from the record output levels in April.
The price of the international benchmark Brent crude is hovering around $30 a barrel.

The Nigerian Content Development and Monitoring Board (NCDMB) says it is intensifying efforts to monitor and evaluate activities toward identifying operators involved in illegal deployment of expatriates in the oil and gas sector.
The NCDMB, in a statement issued on its Twitter account on Tuesday and obtained by TBI Africa in Lagos, warned that erring operators would receive appropriate sanctions.
“NCDMB will intensify monitoring and evaluation activities to identify companies violating the statutory provisions of the DPR manpower supply permits and perpetuating illegal expatriate deployments.&
“This is with a view to invoking appropriate sanctions and penalties as specified in the Immigration Act, 2015 and Immigration Regulation, 2017 as well as the NOGID Act,’’ it said.
The statement said the Ministry of Interior and the Department of Petroleum Resources (DPR), had been notified of the illegal use of the Statutory Oil and Gas Industry Service Permits issued by the DPR.
It explained that the permits were issued to supply “Nigerian professionals only” and not to be used by operators and contractors to supply expatriates to the Nigerian oil and gas industry.
The statement said: “The permits clearly indicate that they are not to be used to deploy expatriates under any circumstance or guise.
“It is also disturbing that operators and major service providers promote this illegal practice by entering into contract agreements with these manpower supply companies to source expatriates for positions which in several cases had been earmarked to be occupied by Nigerians.”
According to the statement, the practice circumvents laid down statutory approval processes and compliance with requirements for obtaining expatriate quota positions.
It therefore warned the companies to henceforth ensure that no expatriates were deployed under such manpower supply contracts under any guise.
The statement said companies seeking to engage expatriates in the sector must ensure that they obtained the relevant approvals from NCDMB.
It said thereafter such companies should apply for expatriate quota and temporary work permit or other entry permits from the interior ministry and Nigeria Immigration Service.
It added that companies deploying expatriates in the industry must ensure full compliance with the guidelines and requirements of the ministry of interior and NCDMB.
It listed the guidelines to include registration with the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS) as well as biometrics enrolment of all expatriate personnel in their employment.

The Economic and Financial Crimes Commission (EFCC) has launched an investigation into identifying owners of four massive barges allegedly transporting stolen crude oil in Rivers, an official said.
The four barges laden with adulterated diesel worth millions of naira were seized by a naval patrol gunboat recently.
Mr Ani Davis, EFCC Principal Detective Superintendent in Port Harcourt, disclosed this to newsmen on Tuesday in Onne, after receiving the four barges and petroleum product from the Nigerian Navy.
The EFCC official said that the latest seizure added to many other cases that the anti-graft agency had received from the Navy following collaboration by both security outfits.
”The Nigerian Navy has continued to demonstrate to us its readiness to end maritime crimes with the recent seizure of four barges laden with huge quantity of petroleum product.
”We have taken over the case and we want to assure the public that the EFCC will conduct thorough investigation, with intent to prosecute anyone linked to the barges.
Davis said that activities of criminals on the nation’s maritime environment was capable of destroying the nation’s economy if left unchecked.
”So, investigation will be speedily conducted to unravel the identity of the fleeing owners of the barges for trial in court, irrespective of their status in the society.
”If found culpable in illegal bunkering, the barges and petroleum product will be forfeited to the Federal Government,” he assured.
He said that the anti-graft agency had successfully convicted hundreds of cases handed to it by the Navy.
Capt. Adegoke Ebo, Executive Officer, NNS Pathfinder, Port Harcourt, said the barges were intercepted during routine patrol of naval gunboats in the creeks of Rivers.
”We intercepted the first barge, which is not named, at NAFCON creek, on April 2 on suspicion of illegal bunkering activities.
”Similarly, NNS Pathfinder patrol team on April 22, also intercepted three other barges, namely, MV Rock 1, MV Julianah and another unnamed barge at the AIP waterfront.
”The barges at the time of seizure were laden with unspecified quantity of petroleum products suspected to be illegally refined diesel,” he said.
Ebo said that naval operatives were unable to make any arrest on board the barges, as the operators abandoned them on sighting the navy gunboats.
The officer said the barges were later towed to the naval holding bay in Onne, for safekeep and preliminary investigation.
”On conclusion of our preliminary investigation, we are directed to hand over the four barges and products to the EFCC for further investigation and possible prosecution,” he added.

States that have not benefited from medical facilities and infrastructure support from the Nigerian National Petroleum Corporation (NNPC) and her partners in the ongoing intervention initiative have no cause to worry.
The corporation’s Group Managing Director, Mallam Mele Kyari, stated that the National Oil Company’s coordinated support would eventually reach them, explaining that inhabitants of the concerned states are a constituent of the 200 million Nigerians who are the shareholders of NNPC.
Mallam Kyari disclosed this Tuesday in Abuja during the inauguration of the Thisday Dome COVID-19 Testing, Tracing and Treatment Centre equipped by Industry stakeholders and other corporate bodies among which are the NNPC, Sahara Group, CA-COVID and China Civil Engineering Construction Company (CCECC), a release by NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated.
“NNPC is owned by the 200million Nigerians. We have a primary responsibility to stand with the country and our citizens at any time to ensure that we fight COVID-19 together.
“We are doing this with the support and the guidance of the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, pulling together the entire Oil and Gas Industry to bring support to the country,” Mallam Kyari quipped.
He stated that in order to have a coordinated approach in addressing the COVID-19 pandemic, the NNPC, as the leader in the Nigeria Oil and Gas Industry, brought all her partners together to deliver medical consumables and infrastructure.
“One of the many things we did is to bring our partners on the table and one of our great partners is the Sahara Group with whom we have many businesses. We have Downstream businesses and we also have Upstream businesses with the group. It is common knowledge that for every Oil and Gas business in Nigeria, NNPC is a partner, either as a direct equity holder or as a cash-contributing partner.  Therefore, everything done in this Industry is with the support of the NNPC,” the NNPC GMD enthused.
Mallam Kyari expressed profound happiness over the completion of the COVID-19 testing, tracing and treatment Centre, saying that the NNPC would continue to support all her partners to deliver more medical facilities and infrastructure in all states of the federation.
The NNPC GMD stated that NNPC and all her partners would set up permanent healthcare structures in all the six geo-political zones, adding that the aim was for the facilities to outlive the COVID-19 period and be of great use to Nigerians after the pandemic.
Mallam Kyari averred that the Corporation had also upgraded one of her medical facilities in Abuja to receive and treat COVID-19 patients, revealing that it equally supported the University of Abuja Teaching Hospital with facilities that would enable her treat COVID-19 patients.
Earlier, the Chief Executive Officer of Sahara Group, Tope Shonubi, applauded the NNPC for the support extended to the group in providing medical equipment to humanity in the face of the global pandemic.
Inaugurating the Centre, the Secretary to the Government of the Federation and Chairman of the Presidential Taskforce, Boss Mustapha, applauded the NNPC and all her partners for supporting the Federal Government in the fight against COVID-19.
The facility is a one-stop shop that could deliver Coronavirus report of 200 samples collected within 24 hours, and boasts of an Intensive Care Unit, Ventilators and a 54Gene laboratory.

The Nigerian National Petroleum Corporation (NNPC), on Tuesday, stated that together with its partners, it would extend its ongoing COVID-19 medical intervention to other states of the federation yet to benefit from the initiative. In a statement in Abuja, Group Managing Director of the NNPC, Mallam Mele Kyari, stated that the NNPC’s coordinated support would eventually reach every state of the country, especially as inhabitants of the concerned states are a constituent of the 200 million Nigerians who are the shareholders of NNPC.
Kyari stated this in Abuja during the inauguration of the Thisday Dome COVID-19 Testing, Tracing, and Treatment Centre equipped by industry stakeholders and other corporate bodies among which are the NNPC, Sahara Group, CA-COVID and China Civil Engineering Construction Company. He said, “NNPC is owned by the 200 million Nigerians. We have a primary responsibility to stand with the country and our citizens at any time to ensure that we fight COVID-19 together. We are doing this with the support and the guidance of the Minister of State for Petroleum Resources, Chief Timipre Sylva, pulling together the entire Oil and Gas Industry to bring support to the country.” He stated that in order to have a coordinated approach in addressing the COVID-19 pandemic, the NNPC, as the leader in the Nigerian oil and gas industry, brought all it partners together to deliver medical consumables and infrastructure to Nigerans cross the country.

By reducing the ex-depot price of petrol without announcing a new price band for the commodity at filling stations, the Federal Government through its agencies is trying to set marketers against the buying public, oil dealers have said.
Last week, the Nigerian National Petroleum Corporation announced a reduction in the ex-depot price of petrol from N113.28k per litre to N108 per litre, without saying anything about the pump price at filling stations.
The NNPC is not the agency responsible for petroleum products pricing, although it has remained the major importer of petrol into Nigeria.
The Petroleum Products Pricing Regulatory Agency is the organisation responsible for products pricing but it has remained silent on the cost of petrol even after the NNPC reduced the commodity’s ex-depot price.
The PPPRA had earlier promised to be carrying out a monthly price review for the PMS but has failed to do so since the beginning of May.
When contacted on Tuesday on why marketers had yet to reduce the cost of petrol from N125 per litre despite the reduced ex-depot price of N108 per litre, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, told our correspondent that it was not the fault of marketers.
He said, “When a government organisation reduces the ex-depot price and you are not telling the buying public the approved band for the pump price at filling stations, you are trying to put us the retail outlet owners against the Nigerian public.
“The Nigerian public will now be saying that why are we still selling at N123.5 and N125 per litre when the ex-depot price has been reduced?”
He added, “Since there is no selling band to show the approved lower and higher rates, it could mean that the NNPC, based on its recently announced N108 per litre price, is now leaving the band in the hands of marketers. But it is not our call to determine the band.”
Gillis-Harry, however, noted that many retail outlets still had some old stock and would have to dispense the products completely before adopting a new petrol pump price, if any.
“Don’t forget that the N108 is not automatic, it was N113 before and all the stock purchased at that rate has not been exhausted. So these are some for the things that need to be cleared,” he stated.
On whether oil marketers had met with the PPPRA on these concerns, the PETROAN president replied, “Yes we are engaging with them because we don’t want our members to fall short of the law.
“They gave us an ex-depot price of N108 per litre but there is no corresponding price band. I spoke to the executive secretary of the PPPRA yesterday and up till now, there is no other development than what I’ve told you.”