Page 10 - AfrOil Week 04 2022

AfrOil PERFORMANCE AfrOil

GNGC was established by the Ghanaian govern- in 2014, and Energy Minister Matthew Opoku
ment in a bid to reduce the country’s dependence Prempeh recently urged it to build a second
on imported LPG and has been in operation facility with similar capabilities to accommodate
since July 2011. The company launched the rising demand.
Atuabo gas-processing plant, which now turns Ghana’s other main source of gas is Nigeria,
out around 50% of the LPG consumed in Ghana, which delivers the fuel via pipeline. ™

POLICY
Nigeria keeps gasoline subsidy in place

NIGERIA NIGERIA’S government has abandoned expressed criticism about the timing of the
plans for eliminating gasoline subsidies as of planned lifting of the fuel subsidy. He said he
July 2022 in response to pressure from labour had urged two organised labour groups, the
groups, which have argued that higher prices Nigerian Labour Congress (NLC) and the Trade
will impose too much strain on the country’s Union Congress (TUC), to call off plans for stag-
poorest consumers. ing demonstrations, saying that there was no
Finance Minister Zainab Ahmed announced need to protest over the elimination of the price
the decision on January 24, saying that Abuja supports.
had recognised that the timing of the policy Nigeria has been under pressure to elim-
change was “problematic.” inate the price subsidies for gasoline, which is
The government is now set to keep the sub- known locally as premium motor spirit (PMS).
sidy in place indefinitely and will seek to amend The policy imposes a major financial burden on
this year’s budget in order to ensure that suffi- Abuja, and Ahmed had said last November that
cient funds are allocated for the price supports, the government was looking at paying a travel
she said. grant of NGN5,000 ($12.04) per month to the
Ahmed did not say how long the government country’s poorest 20-40mn poorest citizens for
and the two chambers of the National Congress a period of up to 12 months starting in July 2022.
might need to amend the 2022 budget. She asserted that it was worthwhile bearing the
The finance minister was speaking after a cost of this temporary programme, worth a total
meeting on Monday with Minister of State for of $5.8bn, rather than continuing to pay the
Petroleum Resources Timipre Sylva and Ahmad subsidy, which has been costing Abuja nearly
Lawan, the president of the Senate. She said at NGN250bn ($602mn) per month, or almost
the meeting that she expected fuel market con- NGN3 trillion ($7.23bn) per year.
ditions to improve in Nigeria following the Meanwhile, Nigeria is also legally obligated
opening of the Dangote oil refinery later this to remove the subsidy under the Petroleum
year. Industry Act (PIA), which was signed by Pres-
For his part, the Senate president, who was ident Muhammadu Buhari last August. The
accompanied by Senate Leader Yahaya Abdul- law states that the price supports must be lifted
lahi and Deputy Whip Aliyu Abdullahi, also within six months of the PIA’s adoption. ™

Nigerian federal government hopes to

see more CNG utilised as vehicle fuel

NIGERIA NIGERIA’S government has presented a plan representatives of several local industry groups,
for expanding the sale of CNG at retail filling such as the Major Oil Marketers Association
stations to operators in the downstream sector. of Nigeria (MOMAN) and the Depot And
Minister of State for Petroleum Resources Petroleum Products Marketers Association
Timipre Sylva unveiled the plan, known as the (DAPPMA).
2022 Framework for the Deployment of CNG, at At the event, Sylva said that the government
a meeting with representatives of fuel marketing hoped to make CNG, known commonly in
companies on January 24. Nigeria as “autogas”, widely available in filling
Also in attendance at the same meeting were stations throughout the country.

P10 www. NEWSBASE .com Week 04 26•January•2022