Energy
Nigerians could pay less for fuel as global crude prices tumble
This week, global crude prices have seen a reduction as the market reacts to weakening economic data out of China.
It has been said that when global crude oil prices rise, fuel pump prices in Nigeria will rise as well.
In fact, the recent increase in fuel pump prices occurred when global crude prices rose for the first time since May 2023.
However, now that global crude prices are experiencing a downturn, it is possible for fuel pump prices to see a reduction.
But this can only happen if the current trend continues, that is, if the next set of petroleum products imports are purchased when global crude prices are still experiencing a downturn.
A review of global crude oil prices yesterday revealed that China’s weak economic activity has put a dent in the recent market recovery.
Note that as of yesterday, Brent crude was $83.93 per barrel, while WTI crude was $80.40 per barrel at 1:11 PM (GMT+1).
Meanwhile, last week, Brent crude was above $85 per barrel. Experts have said that the fall in global crude prices could be attributed to recent discouraging economic data out of China which have influenced crude oil demand in the country.
After seven consecutive weeks of gains, global crude oil prices fell recently, after China reported weak economic data.
Meanwhile, last week, Reuters reported that the central bank of China said it would work to keep liquidity reasonably ample and keep its policy “precise and forceful” to support the country’s economic recovery, amid rising headwinds.
The Central Bank of China also said it would “better leverage the dual functions of aggregate and structural monetary policy tools and firmly support the recovery and development of the real economy.”
According to the Central Bank of China, the country is facing insufficient demand and challenges such as difficult business operations and high risks and hidden dangers in key areas” amid “deglobalisation risks” and a weakening global recovery.
Amplifying demand concerns is the possibility of another rate hike in the United States, the world’s biggest oil consumer, which central bank officials have not ruled out given persistent inflation.
According to Reuters, the United States is expected to continue to draw down stocks and a preliminary Reuters poll showed crude oil and gasoline inventories were expected to have fallen last week.
Note also that around this time in 2022, there was a drop in global crude prices after the Central Bank of China announced a surprise cut in lending rates on the back of weak economic data for July 2022, triggered by the country’s restrictive zero-Covid policy.
At that time, China’s oil refinery output dropped to 12.53 million bpd, which was the lowest level since March 2020 and 8.8 per cent lower than processing rates in July 2021 due to unplanned shutdowns at state-run refineries.
Earlier this month, the International Energy Agency (IEA) said that it expects oil demand to expand by 2.2 million barrels per day in 2023, strengthened by summer air travel, increased oil use in power generation and surging Chinese petrochemical activity.
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) projected a 2.44 million barrels per day rise in oil demand.
According to the IEA projection, oil demand is forecast to average 102.2 million bpd in 2023, with China accounting for more than 70 per cent of growth.
Energy
Synergy, commitment crucial to clean energy transition, sustainability in Africa — CEO, Egbin Power
As carbon emissions reduction and energy security remain a crucial focus in the global sustainability agenda, shared commitment, synergy and decisive actions are the cornerstone of accelerating the transition to cleaner energy and achieving a sustainable environment.
Having analysed the percentage of global greenhouse emissions attributed to sectors including electricity/heat production, agriculture/forestry and land use, transportation, industry and others, the Chief Executive Officer, Egbin Power, Mokhtar Bounour, charged for synergy and renewed commitment among stakeholders.
He made this known at the maiden edition of Asharami Square, a Sahara Group initiative aimed at amplifying the discourse on sustainability through impactful media advocacy.
While highlighting Egbin Power’s unwavering commitment to reducing carbon emissions and promoting sustainable energy sources, Bounour further stressed the need for deepened engagement and advocacy to further prioritise sustainability.
Bounour outlined Egbin Power’s comprehensive approach to sustainability, which includes an array of pragmatic initiatives such as obsolescence management, asset upgrades, energy efficiency improvement, sustainability and environmental impact management, and fugitive emissions minimization.
These programs are strategically designed to effectively address carbon emissions and promote cleaner energy initiatives.
According to him, Egbin Power drives sustainability through afforestation, adoption and enforcement of ANSI Lighting Design Standards for the Egbin built environment, a gradual switch from Internal Combustion Engines (ICEs) to Compressed Natural Gas (CNG) and the integration of Electric Vehicles (EVs) into the company’s operations, among other interventions.
“These actions demonstrate Egbin Power’s commitment to thinking globally and acting locally, ensuring that deliberate and impactful steps are taken to promote sustainability and environmental consciousness actively.
“As a responsible organisation Egbin Power is steadfast in its commitment to promoting sustainability.
“Our roadmap and initiatives are designed to align with global sustainable development goals and to ensure that we contribute to a cleaner and more sustainable energy landscape in Africa.
“Our pragmatic initiatives which include obsolescence management, asset upgrades and overhauls, energy efficiency improvement, sustainability and environmental impact management, and fugitive emissions minimization as part of programs designed to address carbon emissions.
“We are committed to treating the environment with the utmost care, knowing well that every activity we engage in – either as an individual or collectively as an organisation has an impact on the ecosystem,” Bounour explained.
By Esther Agbo
NNPC Retail Limited has swiftly responded to allegations circulating on social media regarding coercive practices at one of its filling stations.
A video clip surfaced on social media, X (formerly Twitter) precisely, purportedly showing customers being pressured to purchase lubricants or engine oil in order to obtain Premium Motor Spirit (PMS), commonly known as petrol. The attendant in the video claimed that this directive originated from NNPC Retail Management.
In a statement issued, NNPC Retail categorically refuted the allegations, asserting that such practices are entirely false and do not align with the company’s Customer Service Charter. According to NNPC Retail, customers visiting any of their filling stations are under no obligation to purchase additional products as a condition for buying petrol.
Managing Director of NNPC Retail Ltd, Mr. Huub Stokman, emphasised the company’s commitment to transparent and quality service delivery.
He stated, “We are dedicated to providing clear, transparent and quality service to all our customers, guaranteeing that their needs are met without any recourse to unnecessary and unscrupulous conditionalities.”
In response to the incident, NNPC Retail Limited has initiated an investigation to ascertain the facts surrounding the video. The company has assured the public that appropriate disciplinary measures will be taken against any individuals found responsible for misconduct.
“The public is hereby advised to disregard the information in its entirety and report any such occurrences to the appropriate authority.
“In the meantime, NNPC Retail Limited has launched an investigation into the unfortunate incident and assures that appropriate disciplinary action will be taken against the culprit (s).”
In line with the Electricity Act 2023, the Nigerian Electricity Regulatory Commission, NERC, issued an order transferring regulatory oversight of the electricity market in Imo to the Imo State Electricity Regulatory Commission.
This was contained in a recent order signed by NERC Chairman Sanusi Garba.
The order shall take effect on July 1, 2024.
The implication is that Imo State will be responsible for the complete regulation of its electricity market.
The order stated: “Section 230 (3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate electricity market from NERC to ISERC upon receipt of formal notification from the State
“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.
“EEDC shall identify the actual geographic boundaries of Imo State and carve out its network in Imo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Imo State into another state.”
With the development, Imo becomes the fourth state to get electricity regulatory authority after Enugu, Ondo and Ekiti states.
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