Financial Energy Review
….Kicks against FG Setting up committee to negotiate Price of PMS……
…….by Ben Ndubuwa……….
As technology continued to be driven by economics, global energy stakeholders have intensified efforts toward transiting from fossil to more cleaner energy in the next 15 years,
For instance General Motors (GM) says it plans to use 100 percent renewable energy to power its U.S. facilities by 2030 and in its global facilities by 2035 and intends to become GM carbon neutral in both its global products and its operations by 2040. Also the French oil giant, Total has said it is changing it’s name to Total Energies for cleaner energy business.
On how prepared are Nigerian players and investors repositioning to be part of this energy transition that is looming globally. The Chairman of Major Oil Marketers Association of Niigeria (MOMAN), Mr. Tunji Oyebanji said technology is driven by economic demand. “How many people are using old cameras with film again. If Nigeria wants to remain in the stone age that is their problem, the world is moving on. We really need to get out of this sentimental view of things. The world will leave us by and we will suffer” he said.
According to him, some investors in Nigerian are making moves to transit to cleaner energy. He said that most of MOMAN members have invested in facilities for Liquefied Petroleum Gas (LPG) another form of cleaner energy.
“MOMAN in collaboration with the Department of Petroleum Resources, DPR, have identify 9,000 dispensing outlets Nationwide for LPG facilities that will deepen the use of Autogas” Oyebanji said.
Speaking on the deregulation of the downstream Sub-Sector, during a virtual press conference today, the MOMAN chairman, said that though the government had made a policy statement of fully deregulating the downstream Sub-Sector but the full implementation of this policy is yet to be felt. He disagreed with the government over the setting up of a committee to determine the price of Premium Motor Spirit (PMS) which is at variance to the policy of full deregulation.
On the pronouncement by the Minister of State for Petroleum Resources, Chief Timipre Sylva that Nigerians should prepare to soak-in more pains in the anticipated increase in the price of petrol, the Oyebanji said that with a fully deregulated downstream industry, the natural fear and anticipation of Nigerians on the increase of the price of transportation, food items and the attendant economic hardships will be resolved.
“Solutions to these challenges can only emanate from a collective resolve by all stakeholders to face up to these challenges together.
“There is the need for a national debate and share pragmatic and realistic initiatives to mitigate the impact of a pump price increase which could follow a fully deregulated downstream.
“We stand with Nigeria and Nigerians through this difficult time and support the Federal Government’s promise to pass the PIB this year and fully deregulate the petroleum downstream sector.
“The benefit of a liberalized downstream is the most visible means of growing the economy in the medium to long term. Nigeria can become the refining hub of West and Central Africa and eventually the whole of Africa if we stick to this path of investing in new refineries, adopting a cost optimization initiative, building an environment that promotes competition and creates a sustainable petroleum sector.
“These actions would lead to increased employment, reduced poverty and reduced social inequity. We must take advantage of the opportunities brought by the African Continental Free Trade Area agreement (AfCFTA) and fully benefit from our barrels of crude, getting the maximum value it can bring Nigeria” Oyebanji said.
