MARKETERS SEEK N200bn INTERVENTION FUND TO CONSTRUCT CNG OUTLETS-MD RAINOIL
Barring unforeseen circumstances marketer at the downstream sector of the nation’s oil and gas would soon access N200billion intervention fund set aside by the Federal government through the Central Bank of Nigeria (CBN) as loan to build infrastructure for Compressed Natural Gas (CNG) in 2000 outlets across Nigeria.
The loan is expected to come with low interest rate to Marketers and will be disbursed to them in the next six months.
Speaking on Thursday at a virtual inter-active session organised by Association of Energy Correspondents of Nigeria (NAEC) titled “Deregulation and Sustainable Energy Future through Natural Gas” the Guest Speaker, Dr.Gabriel Ogbechie, the Managing Director of Rainoil Limited said this fund for Marketers is to put in place facilities for autogaa all over Nigeria.
Ogbechie said this is aimed at providing a cheaper and cleaner alternative for vehicle users as the country moves toward the full deregulation of the downstream petroleum sector.
“Nigeria requires about $6 billion worth of investment. Marketers can leverage on this opportunity by investing in gas adoption and utilisation.
“Investment can be made in areas such as Liquefied Petroleum Gas (LPG) bulk storage, LPG trucks, LPG filling plants, LPG skids and Gas cylinder manufacturing, Liquefied Natural Gas (LNG) plants” he said.
According to him the Nigerian National Petroleum Corporation (NNPC) has remained the sole importer of Premium Motor Spirit (PMS)
“The Federal Govt. paid N725bn as petrol subsidy in 2019 and spent over N101.65bn on subsidy in Q1 2020.
“Covid-19: Subsidy was “discontinued” in March 2020 by the PPPRA following the crash in the global crude oil prices…price modulation. PMS pump price was moved from N145/ltr to N125/ltr as landing cost of PMS was N99.44/ltr
“As crude oil prices recovered and PMS landing cost increased, PMS pump price were moved to N143.8/ltr in July 2020, N151.56/ltr in Sept 2020, N162/ltr in October and N165/ltr in November 2020.
The Rainoil CEO pointed out that in February 2021, subsidy element “returned” as crude price hit $64/bbl and landing cost of PMS increased to N186.33/ltr (while pump price remained at N165/ltr).
“In March 2021, crude price averaged $67/bbl thereby increasing landing cost of petrol to N189.61/ltr. Fuel subsidy in March 2021 is estimated at N102.96bn
“Lack of clarity from the Ministry of Petroleum on the pricing regime (current and future) has resulted in: Inconsistent communications form industry agencies. Increased speculation by marketers (buy-sell decision making) Inconsistent supply of product” he said.