Despite ex-depot price, NNPC allays fear over fuel price increment

Abiola Seun

Despite N9 increase in the ex-depot Price, the Nigerian National Petroleum Corporation (NNPC) has allayed fears of any hitch in petroleum products supply following reports of resurgence of queues in some parts of the country.

Malam Mele Kyari, Group Managing Director, (NNPC), gave the assurance while speaking at the Association of Energy Correspondents of Nigeria (NAEC) 2021 Strategic International Conference on Tuesday in Lagos with theme: ‘Petroleum Industry Act: Energy Transition and the Future of Nigeria’s Oil and Gas.’

Kyari said NNPC’s objective was to provide energy security for Nigeria and ensure availability of petroleum products in the country.

He said: “As we speak now, there is speculation of fuel scarcity within the media but we have over 1.7 billion litres of Premium Motor Spirit in the country.

“We have another 2.3 billion litres coming in so there is no shortage in supply as being speculated.

“Of course there are issues about pricing at some depots but government has no plan to revise the pricing structure.”

Kyari said the ongoing United Nations Climate Change Conference (COP26) in Glasgow, Scotland, again highlighted the challenges faced by Nigeria and other African countries in the global energy transition.

He said President Muhammadu Buhari, in his speech before the world leaders, had demanded for energy justice for the continent and the need to exploit the available resources as a pathway to attain the net-zero carbon objective by 2050.

The NNPC boss noted that though Africa accounted for only about three per cent of the global carbon emission, the continent still had the responsibility to join the world in combating climate change.

According to him, Nigeria has identified its abundant gas resources as its fuel for energy transition, which informed the declaration of the Year 2021 to Year 2030 as the Decade of Gas by the government.

Kyari said: “We are making good progress in terms of the implementation of the PIA which is clearly creating the path for transition.

“There is no way we can achieve this feat without adequate infrastructure to transport the resources to where it will be used and that is why we are investing in massive gas infrastructure.”

He said the projects included the Obiafu-Obrikon-Oben (OB3) and the Ajaokuta-Kaduna-Kano pipelines, which would deepen gas utilization in the country.

Also, Mr Simbi Wabote, Executive Secretary, NCDMB, said the passage of the PIA had opened a vista of opportunities for the industry.

Wabote, represented by Mr Tunde Adelana, Director, Monitoring and Evaluation, NCDMB, said the implementation would impact positively on local content development and host communities.

He added that it would also stimulate the much-needed investment to the oil and gas industry