Fuel price rises to N205, under recovery hits N60/litre


…Switzerland to invest in clean energy sector***

The actual price of Premium Motor Spirit, PMS, also known as petrol, climbed to N205 per litre, according to documents obtained from the Petroleum Products Pricing Regulatory Agency, PPPRA.

What this means is that if the Federal Government deregulates the downstream petroleum industry today, petrol would be sold to motorists by petroleum marketers at N205 per litre.

According to the documents from the PPPRA, the price of the commodity appreciated by 8.47 per cent from N189 per litre recorded in April 25, 2018, to N205 per litre as at May 16, 2018.

The price had risen from N200 per litre between May 1 and May 10, 2018, to N205 per litre between May 11 and May 16, 2018. However, the price of petrol is still fixed at a maximum of N145 per litre, meaning that Nigerian National Petroleum Corporation, NNPC, is currently paying N60 as under recovery for a litre of the commodity.

National Bureau of Statistics, NBS, had in its Petroleum Products Imports and Consumption (Truck Out) Statistics for the first quarter of 2018, stated that 4.89 billion litres of PMS was distributed nationwide in the first three months of the year. This translated to an average consumption of 54.33 million litres of PMS daily.

To this end, using an average of 50 million litres of PMS consumption daily, the NNPC is therefore, incurring an under recovery of N3.26 billion daily and N97.8 billion on a monthly basis.

Confronted with the rising price of PMS and rising under-recovery payments, Group General Manager, Group Public Affairs Division of the NNPC, Mr. Ndu Ughamadu, told Vanguard that “an issue is obvious: the higher the price of crude oil, the higher the price of products on the international market and the higher the landing cost.” By extension, therefore, the higher our under recovery.”

Under-recovery, in downstream petroleum marketing parlance, is when the expected open market price of PMS is below the approved official retail price at the pump.

The expected open price is a combination of the cost of importation and distribution of the commodity, such as marketers’ margins, landing cost and freight cost. Under recovery is another name for subsidy, because it occurs in a situation where the selling price is lower than the actual cost of a product.

In the meantime, Switzerland is willing to invest in Nigeria’s clean energy sector to help the country meet its power needs, its Consul-General Mr Yves Nicolet, has said.

According to him, there were 47 Swiss firms operating in various sectors of the economy, including Tellco Europe Nigeria, whose parent company is Tellco Europe Switzerland.

He said more Swiss firms would join the firm, which launched a Swiss technology known as TellcoSol, an off-grid solar power solution.

Nicolet, who spoke at a briefing by Tellco Europe Nigeria to mark this year’s World Environment Day, said Switzerland was aware of Nigeria’s energy gap and would bring more investments to the sector.

“We’re trying to bring more investments, especially in the clean energy sector. One of the biggest challenges Nigeria needs to meet is to increase its energy supply,” he said.

He described the off-grid solution as “the technology that will shape the future of Nigeria and the continent”.

Tellco Europe Nigeria Chairman, Prof Wale Omole, said the firm was determined to contribute towards the attainment of accessible and affordable clean energy in Africa.

“Our overall cardinal goals and objectives at Tellco Europe Nigeria are to create new continental economic opportunities for growth and development through powering the Micro, Small and Medium Enterprises (MSMEs) with efficient clean energy; to increase access to affordable and sustainable energy and reduce carbon emission; to champion low carbon development through clean efficient energy systems, and end energy poverty in Africa for sustainable continental and equitable development.

“As we join the world to ‘beat plastic pollution’, TellCo Europe Nigeria remains committed to ending energy poverty in Nigeria, and electrifying the African continent within a very short time,” Prof Omole said.

The solar technology includes the 1200 watts TellcoSol model known as Lugano, which comes with a three-year warranty, two-year insurance, and can provide solar-powered electricity for over 24 hours daily, with fixed options of two AC standing fans, a 32-inch television, a refrigerator, among others.

Vanguard with additional report from Nation