{"id":2708,"date":"2024-09-25T20:20:48","date_gmt":"2024-09-25T20:20:48","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=2708"},"modified":"2024-09-25T20:20:48","modified_gmt":"2024-09-25T20:20:48","slug":"presidency-reveals-tinubus-stand-on-dangote-nnpcl-fuel-price-feud","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2024\/09\/25\/presidency-reveals-tinubus-stand-on-dangote-nnpcl-fuel-price-feud\/","title":{"rendered":"Presidency Reveals Tinubu\u2019s Stand On Dangote, NNPCL Fuel Price Feud"},"content":{"rendered":"
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The Presidency has clarified that President Bola Tinubu will not intervene in the ongoing fuel price dispute between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).<\/h2>\n

The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, made this statement on Wednesday while addressing State House correspondents at the Presidential Villa in Abuja.<\/p>\n

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Onanuga emphasized that both entities operate independently within a deregulated market framework. He noted that under the Petroleum Industry Act (PIA), the NNPCL functions autonomously despite being government-owned.<\/p>\n

The clarification comes amid rising fuel pricing tensions as both Dangote Refinery and NNPCL navigate the complexities of the Nigerian oil market.<\/p>\n

Onanuga said,\u00a0\u201cThe PMS (Premium Motor Spirit) field, the PMS regime, has been deregulated. Dangote is a private company. NNPCL should not forget it\u2019s a limited liability company.<\/em><\/p>\n

\u201cWhatever controversy both of them are having is their problem. They are operating, even if you go by the terms of Petroleum Industry Act NNPCL is on its own, even though it\u2019s owned by the federal government, the state government and local councils and everything, but it\u2019s operating as a limited liability company.<\/em><\/p>\n

\u201cYou can see what the private market has said that I think they find the NNPC or Dangote price too much for them. They will resolve to import fuel because they clear the market at the end of the day.<\/em><\/p>\n

\u201cIt\u2019s the consumer who benefits if a price war starts, if NNPC fuel is too much, the public market can go to the market and bring in their fuel and sell at the price that they think is very reasonable and profitable for them.<\/em><\/p>\n

\u201cSo my answer is that, as far as this is concerned, the government is not dabbling into this controversy. Dangote as a private company is working on his own. NNPC is a limited liability company, and it has the right to fix the price of its own and so on.\u201d<\/em><\/p>\n

Onanuga said that instead of intervening, the government plans to promote alternative energy solutions like Compressed Natural Gas, and CNG, offering a cheaper option for consumers and subsidizing vehicle conversion costs.<\/p>\n

He noted that the price difference is significant, with CNG costing about \u20a6230 per litre, equivalent to PMS at around \u20a6850 per litre.<\/p>\n

According to him, the government aims to have about a million vehicles running on CNG and plans to subsidize the conversion costs for private vehicle owners.<\/p>\n

He added,\u00a0\u201cThe government wants to make sure that Nigerians have a choice. If you don\u2019t want to use PMS, you can use CNG, and you can see what\u2019s going on in some of our cities, Lagos, Ibadan, Benini and some other places where transporters are already embracing CNG.<\/em><\/p>\n

\u201cAnd the whole idea that CNG, the equivalent of gas to PMS, the gap is very wide. If you want to buy a litre of petrol, if they sell it, let\u2019s say 850 Naira, what they\u2019re going to get by the equivalent of CNG is about 230 Naira, and you can see the gap.<\/em><\/p>\n

\u201cSome of the transporters are already converting their vehicles to CNG, and the government has a plan to make sure that about a million of those vehicles run on CNG. The whole idea is that if they run on CNG, the cost of transportation will go down.\u201d<\/em><\/p>\n

In addition, Onanuga pointed out that the administration is encouraging states to develop urban transportation systems to reduce overall transportation costs.<\/p>\n

He stated,\u00a0\u201cIn addition, the government is going to encourage many of our states to go into urban transportation so they can help to make sure that they reduce the cost of transportation in many of our cities. As of now in the entire country, only Lagos, state has an urban transport system.<\/em><\/p>\n

\u201cCities like Ibadan Kaduna, Kano, they don\u2019t have it. But this government has a plan to encourage all of them to start urban transport.<\/em><\/p>\n

\u201cAny modern city should have an urban transport system. The government also has a plan to make sure that even private car owners can convert to CNG at a reduced cost.<\/em><\/p>\n

\u201cFor transporters, it is almost free for them, but for private vehicle owners, the government has the plan to subsidize, I mean, the cost of converting the vehicle from petrol to CNG.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Presidency has clarified that President Bola Tinubu will not intervene in the ongoing fuel price dispute between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). The Special Adviser to the President...<\/p>\n","protected":false},"author":2,"featured_media":2709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/2708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=2708"}],"version-history":[{"count":1,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/2708\/revisions"}],"predecessor-version":[{"id":2710,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/2708\/revisions\/2710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media\/2709"}],"wp:attachment":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=2708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=2708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=2708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}