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“Invest in gas adoption, utilisation, Rainoil boss urges marketers

The Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie has urged marketers to leverage in the opportunity of  investing in gas adoption and utilization in deepen gas usage in the country.

TBI Africa reports that Ogbechie disclosed this at the National Association of Energy Correspondents (NAEC) webinar conference, titled “Deregulation and Sustainable National Energy Future Through Natural Gas”.

He noted that NNPC has remained the sole importer of Premium Motor Spirit (PMS) and will remained so if the sector is not deregulated.

According to him, ” With crude oil prices currently above $60 a barrel, and a liter of petrol hovering between N162 and N165 per liter at filling stations, Nigeria government is said to be spending a whooping sum of N9 billion as subsidy on over 30 million liters of Premium Motor Spirit (PMS) consumes daily across the country.

The Group Managing Director, Rainoil Limited, said unless the downstream sector is fully deregulated, the Federal Government will continue to subsidise the sector to the detriment of other developmental projects in the country.

He explained that the Federal government paid N725 billion as petrol subsidy in 2019 and spent over N101.65 billion on subsidy in the first quarter of year 2020, stressing that with Covid-19,  fuel subsidy was “discontinued” in March 2020 by the Petroleum Products and Pricing Regulatory Agency (PPPRA) following the crash in the global crude oil prices which led to price modulation of pump price of PMS.

“The pump price was moved from N145 per litre to N125 per litre as landing cost of PMS was N99.44 per litre.

“As crude oil prices recovered and PMS landing cost increased, PMS pump price were moved to N143.8 per litre in July 2020, N151.56/ltr in Sept 2020, N162/ltr in October and N165/ltr in November 2020.

” 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)”

Ogbechie noted market fundamentals changed in March 2021 when crude oil price averaged $67/bbl, thereby increased landing cost of petrol to N189.61/ltr, with estimation that fuel subsidy will hit N102.96 billion at the end of the month.

He lamented that due to 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, panic buying by the public as well as hike in transportation fares and product prices.

Rainoil Limited is an integrated downstream oil and gas company. A prominent player in the Nigerian industry, the company’s operations span across the downstream value chain i.e. Petroleum Product Storage, Haulage/Distribution and Retail Sales.

The company’s mission and vision is to provide energy products and services in an efficient & sustainable manner while creating superior value for all stakeholders. And also to be a leading energy products and services company.

Rainoil Limited was incorporated in November 1994. Commencing business as a petroleum products marketing company in May 1997, the company’s assets base has grown over the last 20 years to include:

  • Bulk Storage – 3 ultra-modern petroleum product storage depots i.e. a 50 million litre capacity multi-product depot in Oghara, Delta State, a 50 million litre capacity multi-product depot in the Calabar Free Trade Zone, Calabar, Cross River State and a 50 million litre capacity multi-product depot in Ijegun, Lagos State.
  • Retail Services – over 100 retail outlets spread across the country. Our stations are strategically located in major cities such as Lagos, Abuja, Kaduna, Port Harcourt, Calabar, Uyo, Enugu, Onitsha, Asaba, Makurdi, Sapele, Lafia, Keffi etc. We have a large and diverse customer base of retailers who rely on us for supply of products.
  • Logistics – A fleet of over 100 tank trucks for efficient delivery of products to our network of stations and customers across the country. The fleet is frequently renewed through a deliberate truck acquisition policy.
  • Marine Services – 1 shipping vessel; with a total carrying capacity of over 20,000 metric tonnes.

Rainoil Limited remains a wholly indigenous company and a recognised player in the downstream oil and gas industry. The ultra-modern head office is located in Lekki, Lagos State

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