The Federal Government has expressed readiness to support the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) to fasttrack expansion of Compressed Natural Gas (CNG) distribution outlets.
Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), said this during a courtesy visit by the President of the association, Dr Billy Gillis-Harry, on Tuesday in Abuja.
He said the gesture would accelerate ongoing energy transition in the country.
“We are looking forward to the day when all fuel stations will also have components for CNG since we have adopted gas as our transition fuel.
“We believe that very soon the outlets that you own will in addition to the pumps for Premium Motor Spirit (PMS), diesel, Dual Purpose Kerosene (DPK), also have a components for CNG.
“And we will be glad to partner with you to give any support that could be needed from government to actualise that rapid expansion of distribution outlets for CNG.
“We will work very closely with you going forward to ensure that we address any concerns that you may have from time to time,” Lokpobiri said.
The minister commended PETROAN for its support since he assumed office, adding that the benefits of Nigeria as an oil producing country would not have been felt by Nigerians without PETROAN.
He said it was a very difficult decision to get the sector fully deregulated, adding that, “a decision that no leader had the courage to do, but today, everybody could enjoy the benefit of full deregulation.
“Before now, products were either not available or the prices were very disproportionate.
“But with deregulation, the price is finding its level in different locations in the country. And it has also opened new vistas of opportunity for investments to come into this sector.”
Lokpobiri also clarified that the federal government was not canceling Naira-for-crude sale policy as being insinuated in some quarters.
“I know that people have been buying crude to refine in their respective local refineries in Naira. The dispute has always been, what is the exchange rate? which government is not involved, rather purely private sector.
“But that doesn’t mean that Dangote doesn’t buy crude from other operators. They buy, but that Naira-for-crude scheme was basically between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and Dangote Refinery.
“So it is not true that the scheme is canceled, not at all.”
According to Lokpobiri, the NNPC Ltd. is also a limited liability company, owned by Nigerians, but to operate like other companies, the Petroleum Industry Act (PIA) makes it a private sector-driven company to maximise the opportunities.
“And so the NNPC Ltd. takes decisions that they feel is best for Nigeria in the industry, with limited government interference. That doesn’t mean that we cannot call them to order from time to time.
“But the point I am making here is that the NNPC Ltd. has a measure of independence now so that they can make proper business decisions, that will be best for Nigerians,” he said.
The minister further described as “germane” request by the PETROAN to be included into the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) board, stressing that it needed presence in the NMDPRA.
“But the only problem we have is that it is only the National Assembly that has to amend the PIA.
“The PIA prescribed the membership of the NMDPRA board. And if PETROAN is going to be a member, it will require an amendment of the PIA. The PIA took us almost 20 years to pass,” he said.
Earlier, Gillis-Harry said the visit was to discuss critical issues in the oil and gas industry, adding that Lokpobiri had achieved significant developments such as increase in crude oil production since assuming office.
He said that PETRON appointment into the NMDPRA board would bolstered the association outreach at the grassroots, considering its vital role in ensuring efficient delivery of petroleum products to Nigerians.
“Permanent percentage allocation of petroleum products should be given to PETRON. We are taking whatever that is given to us. It’s not sufficient. We want to make sure that our stations are wet all the time,” he said.
He emphasised on endorsement of PETROAN Quality and Quantity Assurance Control, Price Intelligence and Monitoring System, to support existing technology in monitoring and safeguarding loaded petroleum products from the depot to their destination.
Gillis-Harry lauded the minister for attracting increased investments in oil production, establishment of the Petroleum Industry Stakeholder Forum, and for revitalisation and loading of petroleum products at the Port Harcourt and Warri Refineries.
“Crude oil theft has been one of the banes of the Nigerian economy being that we depend on this source of production for our economic growth.
“Your efforts in fighting this longstanding menace in the oil industry is highly commendable.”
He listed other achievements to include winning the bid to host the Africa Energy Bank, sustaining peace across host communities through robust community engagements, fully deregulation of the downstream sector and ensuring availability of refined petroleum products.
