Page 17 - DMEA Week 25 2021

DMEA NEWS IN BRIEF DMEA

for its fuel needs, as the country’s refining oil derivatives grant worth $422 million is part meeting organised by NNPC to discuss how
sector faced an uncertain future. of efforts to improve economic conditions of best to stop smuggling.
Sapia attributed this to the shortage of the Yemeni people and is an extension of the While commenting on the fuel price, he
funds from the government and a lack of support Saudi Arabia offers to Yemen in all said, “If we are to sell at the market today at
sufficient demand in South Africa to warrant fields owing to deep-rooted ties between the current exchange rate, we will be selling the
significant investment. It said there had been people of the two countries. product at about N256 to a litre. What we sell
talk among some shareholders of withdrawing The grant will provide help ease budgetary today is N162, so the difference is at a cost
from existing projects. pressures on the Yemeni government to the nation. “The difference comes back to
In March, Tshifularo said 55 percent of and reduce the use of hard currencies for as much as N140bn to N150bn cost to the
local demand was being met by imported buying oil derivatives from global markets, country monthly.”
product, because more than two-fifths of the Basuleiman said. He added that the grant He however said with the high volume
country’s refinery capacity was off-line, and will also help stabilize the Yemeni riyal’s of daily consumption, the country cannot
refineries were losing money. exchange rate and fuel prices against the US sustain subsidy payment. He noted that
Astron Energy refinery in Cape Town dollar, improve vital services, and provide job smuggling across the borders increased the
is currently offline after a fire last year. The opportunities, as well as boost the standard of daily consumption of Premium Motor Spirit
Engen refinery in Durban, which was owned living in the country. (PMS) to 103 million litres per day in May.
by Petronas, has also been shut down. According to Basuleiman, the grant But the introduction of Operation White
Yesterday, Bloomberg reported that contributes to reducing recurrent power and involvement of the Economic and
Petroliam Nasional was reviving discussions disruptions that affect the daily life and the Financial Crimes Commission (EFCC) had
on a potential exit from South African fuel quality and performance of the vital sector helped the situation, Kyari stated.
retailer business Engen, citing people familiar in Yemen, where this support is expected “From the truck out report from the
with the matter. to make a positive impact that reflects on PPPRA database, we have seen collapse of
Gagiano said the sector was traditionally economic, health, educational and service load-out average move from 70m litres to 60m
dominated by large multinational traders, and sectors. Development projects in Aden that litres just in one month; that means we can do
it was now proving to be a fertile ground for are implemented by the program include with less than 70m, the balance, I don’t know
up-and-coming challengers with a focus on 198 projects and initiatives implemented in where it goes to but we know for sure that it is
local and sustainable transformation. various Yemeni governorates to meet the not consumed in this country.
“The current turbulence in the South needs of the Yemeni brothers in seven basic “In very recent data, we see what we really
African industry is resulting in opportunities sectors: education, health, water, transport, want in the beginning of May and June, there
and open up the playing field for new and agriculture, fishery resources, and building up was a day, we loaded out about 103m litres of
agile companies with significant expertise, and the capabilities of public institutions. PMS within one day across the depots.”
that also bring black economic empowerment SAUDI GAZETTE The Minister of State for Petroleum
integrity and entrepreneurial mindsets,” Resource, Chief Timipre Sylva, said smuggling
he said. Gagiano said: “This is the era for NNPC discloses true price was not a business and would never be a
disruptions for good reasons. We are looking business. “When I first came in as minister, I
towards a more sustainable world, and every of gasoline was informed that the daily consumption in
industry needs the challengers who are the country was around 60 to 62m litres a day,
bringing new perspectives and new ideas of Group Managing Director of the Nigerian which to me sounded a little bit outrageous
doing business in better ways.” National Petroleum Corporation (NNPC), considering the number of cars we have
IOL Mele Kyari, has said the federal government on the road .“But somehow, the figures I
is injecting between N140 billion to N150bn understand today, have come down to around
monthly to keep petrol price at N162 per litre, 52m litres,” he said.
FUELS from its actual N256. DAILY TRUST
He stated this during a stakeholders
Second batch of Saudi

derivatives grant arrives in

Yemen

The second batch of the Saudi oil derivatives
grant offered to Yemen arrived at the port of
Mukalla in Yemen’s Hadramout governorate
on Wednesday, amounting to 23,000 metric
tons.
The oil derivatives will help power plants
generate electricity in the governorate in
coordination with local authorities, the Saudi
Press Agency reported.
Office Director of the Saudi Development
and Reconstruction Program for Yemen in
Hadramout and Al-Mahrah governorates
Engineer Abdullah Basuleiman said that the

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