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‘FG Has No Plans To Increase Fuel Price’

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The Nigerian National Petroleum Corporation (NNPC) says it has no plans to review the pump prices of petroleum products, especially Premium Motor Spirit (PMS), otherwise called petrol.

NNPC’s spokesperson, Mr. Ndu Ughamadu, made the clarification yesterday in a press statement.

Ughamadu dispelled the rumour of an impending price hike petrol currently trending on the social media as untrue. Refuting the rumour, he said, “Contrary to the misinformation trending in the social media, the Federal Government has no plan to review prices of white products either downwards or upwards.”

The statement cautioned rumour mongers to be wary of the impacts their ignoble act could cause on prices of petroleum products especially petrol as the festive period draws near, adding that if not checked, the insinuation of unsubstantiated price review can lead to artificial scarcity, hoarding of products by consumers which in turn may result in unwarranted queues and suffering of Nigerians at fuel stations.

He also explained that despite the fact that NNPC, since October, 2017, had been the sole importer of PMS into the country as the Oil Marketing Companies (OMCs) could not import due to the Open Market Price being much higher than the N145/litre official selling price, government has no plan to review the market prices of products either upwards or downwards now.

The NNPC spokesman disclosed that members of the public should report any station which sells PMS above the N145 recommended price to the offices of the Department of Petroleum Resources (DPR) nationwide, saying the Department is authorised to monitor and regulate the Industry’s activities.

Ughamadu said the recent statement of the NNPC GMD, Dr. Maikanti Baru, that the corporation had 37 days stock of PMS subsists, stressing that the NNPC’s helmsman has mapped out strategies to ensure that Nigerians have a hitch-free festive period.

Also, the NNPC yesterday announced the re-entry of its subsidiary, NIDAS Shipping Services, into the international shipment of crude oil and petroleum products, seven years after falling out of reckoning in the global oil freighting trade.

A statement signed by the corporation spokesperson, Ndu Ughamadu, explained that NIDAS’s re-entry is in tandem with the ongoing strategic re-engineering of some NNPC subsidiaries to ensure multiple income streams and value addition to the corporation in line with the aspiration of the corporation’s Group Managing Director, Dr. Maikanti Baru.

Ughamadu further stated that NIDAS has already established a robust chartering and operation desk in its UK office to help the company secure sea-going vessels from spot market to herald its market re-entry and foster strong competitive edge.

“Already, the company’s presence is generating some positive traction in the international freight space as global tanker fixture’s report last week acknowledged the chartering of LRI tanker, MV Atlantica Bridge by NIDAS to load jet fuel from El Dekheila Port, Egypt for delivery to Nigeria for Duke Oil.

“The fixture report also captured NIDAS booking of tanker Res Cogitans to load Mercuria’s gasoline cargo for early-November loading from Europe’s ARA (Amsterdam-Rotterdam-Antwerp) region to Offshore Lagos,” he stated.

Ughamadu also said that as part of strategy to ensure effective participation in the entire supply value chain, NIDAS would optimize right of first refusal offer in the NNPC annual crude oil term and Direct-Sale-Direct Purchase (DSDP) agreements with off-takers.

Under the terms of the deal, the off-takers are obligated to offer the NNPC shipping subsidiary the right of first refusal in freighting of cargoes.

The long-term aspiration of the company is to own and operate fleet to secure a significant market share in the global shipping market.

Mr. Ughamadu said the development was part of the GMD’s 12 Business Focus Areas (12BUFA) which he unfolded when he took over the leadership of the corporation in 2016.

Incorporated in 2007 as a Joint Venture between NNPC, Daewoo Shipbuilding and Marine Engineering Company Limited (DSME), NIDAS is presently a wholly owned subsidiary of the corporation.

Subsequently, a Board of Directors was inaugurated by the GMD with Engr. Henry Ikem Obih, Chief Operating Officer Downstream, as chairman, while Mr. Lawal Sade was appointed Managing Director with mandate to drive the turn-around process and effective re-entry strategy of NIDAS into the international oil shipping business.



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