Subsidies: Nigeria needs fuel alternatives — DPR
…Warns oil Marketers against hoarding during Sallah
By Uthman Salami
The Director, Department of Petroleum Resources (DPR), Sarki Auwalu, has revealed that for federal government to eliminate fuel subsidies, it would need to find other fuel alternatives.
He said this at the Q2 2021 business dinner of the Petroleum Club Lagos convened by a proprietary investment company, A. A Holdings.
According to him, “To eliminate subsidies, what we need is an alternative fuel, and without an alternative, people would be subjected to higher prices and that is why we go for price freedom.
“We are encouraging investors in the sale of gas because we know that once this is achieved, the issue of subsidy and volume would be addressed.”
Auwalu added that the country was only operating 1,300 of its 7,000 reservoirs which the Department hoped to achieve refinery revolution as defined under the decade of gas.
In his word, “We cannot have 7,000 reservoirs and we are only producing from 1,300. We cannot afford to stay with a 40 percent recovery factor.
“We are also optimising the production to ensure that investors get a return on their investments while also reducing the cost of production.
“For the midstream, our focus is to achieve refinery revolution under the decade of gas. We have to shift from a resource cost to a resource use industry and for us to migrate.
“We have to create the need and satisfy the need and that is the essence of the decade of gas.
“Today, we have huge additional capacity in domestic refining, so the challenge is that the refining capacity is increasing.
“We have to increase our production capacity so that we remain the net exporters because we believe this would guarantee and fortify the future.”
Meanwhile, the Department has warned oil Marketers to desist from hoarding of fuel under any disguise during these Sallah holidays.
The Head, Public Affairs, DPR, Mr. Paul Osu gave the stern warning in a statement in Lagos.
Osu said there was product sufficiency nationwide, warning vmarketers against hoarding and creating artificial scarcity under any guise.
He said the DPR would intensify its monitoring and surveillance of petroleum products outlets to ensure compliance with quality, quantity, integrity and safety of operations in line with its regulatory mandate.
Osu thereby enjoined consumers to report any infraction such as under dispensing of products to any DPR office nationwide.
Osu further reiterated the DPR’s commitment to safety and advised consumers to observe all necessary safety protocols in the handling of petroleum products.
Osu said the regulatory agency would continue to initiate appropriate initiatives to enable business and create opportunities for investors and stakeholders in the oil and gas industry in Nigeria
He assured Nigerians that there were enough fuel supply in the country, thereby assuring them of the Department proactive monitoring.
