Page 13 - DMEA Week 13 2022

DMEA NEWS IN BRIEF DMEA

POLICY from Europe. would not be easy nor cheap, meaning that
“In a global market, product flows are a lack of funding could delay the move to
Remove petrol subsidy, directed by price. Nigeria is competing with cleaner energy sources.
Accordingly, Mercer said, Ghana’s
other destinations for products.
expert urges FG capacity with the coming on stream of the government is determined to use revenues
“But even if Nigeria had sufficient refining
earned from the sale of domestic crude oil and
An oil and gas expert, Mr James Gooder, has 650,000BPD Dangote Refinery and others, natural gas production to develop its capacity
advised the Federal Government to remove it would still be in a competitive market and with respect to cleaner energy.
subsidy on Premium Motor Spirit (PMS), exposed to import parity prices,” he said. The deputy minister also said that fossil
petrol, in order to discourage smuggling of the Gooder said the government should fuels, especially natural gas, would continue
product across Nigeria’s borders. engage the media and the citizens on the need to be part of Ghana’s energy mix, while Accra
Gooder, Vice President, Crude and African to allow market forces to determine the price develops strategies to increase renewable
Markets, Argus Media, United Kingdom, of petrol in the country. energy production in the medium term.
gave the advice while speaking at a virtual He said in the longer term, government “Currently, about 70% of Ghana’s [installed
media workshop organised by the Major Oil could improve public transport and attract generating capacity] of 5,321 MW is from
Marketers Association of Nigeria (MOMAN) investment for infrastructure – whether a thermal plant that uses natural gas as its
on Thursday. refining or storage and distribution. primary fuel. This proportion is projected
The News Agency of Nigeria (NAN) Gooder, however, noted that the crude to increase to meet the [country’s] growing
reports that the Federal Executive Council oil market was volatile and unpredictable, energy demand, commensurate with energy
had approved N3 trillion for subsidy on PMS stressing that the measures were only aimed at demands and national economic growth,” he
in 2022. mitigating its impact on the ordinary citizens. is quoted as saying by Starr Fm.
He said the ongoing war between Russia He explained that the increase in prices Mercer also noted that afforestation
and Ukraine had led to a surge in crude oil of diesel and aviation fuel was higher than programmes and carbon credits would be
prices at the international market with Brent the increase in petrol prices globally because introduced to offset the environmental impact
Crude currently trading at over 120 dollars the supply of diesel and aviation fuel (middle of oil and gas development.
per barrel. distillates) was mainly from Russian refineries, BNE
According to him, while the landing cost of which were currently under sanctions.
PMS, also known as petrol is currently above Gooder said petrol was from Northwestern
N400 per litre, the government is spending Europe refineries, which was readily available. SUPPLIES
huge amounts subsidising the product to retail He advised the Nigerian government to
at N165 per litre. ensure that the right pricing benchmark was Iran’s condensate exports
He said: “Capped retail prices for PMS may used to import PMS from Europe.
be popular, or even expected, among those NAN quadrupled in August
that can afford to own a car.
“But current delivered prices for PMS are Ghana ready to phase out Iran’s oil minister Javad Owji says condensate
around three times as high as the pump price. exports from the country rose nearly four-fold
Is this sustainable? Is financing this the best fossil fuel over the past eight months.
use of Nigerian taxpayers’ money? Speaking to the Iranian radio on Monday,
“There is an unfortunate but clear incentive Ghana is ready to phase out fossil fuels and Owji said that exports of condensate, which
to smuggle subsidised fuel out of Nigeria to make the transition to renewable energy, in is a very light form of crude, reached nearly
neighbouring countries where retail prices are line with worldwide efforts to reduce carbon 240,000 barrels per day (bpd) at the end of the
higher.” dioxide emissions, Deputy Energy Minister calendar year to March 20.
Gooder said Nigeria and her West African Andrew Agyapa Mercer has said, local media That comes as condensate exports from
neighbours lacked sufficient regional refining outlet Starr Fm reports. Iran had been reported at only 60,000 bpd in
capacity and imported majority of their PMS He acknowledged, though, that the shift early August when Owji took office under a

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