Oil Prices Climb Toward $90 On Geopolitical Risk And A U.S. Stock Draw
Brent crude ticked up closer to $90 per barrel today after the American Petroleum Institute reported a larger than expected draw in U.S. inventories and as geopolitical tensions remained intense.
The U.S. inventory report of the API showed draws across the board, with crude oil shedding 2.3 million barrels, with gasoline stocks down by 1.4 million barrels and middle distillate inventories down by 2.5 million barrels.
The geopolitical updates included yet another Ukrainian drone attack on a Russian refinery and Iran vowing to retaliate for Israel’s strike on the Iranian consulate in Damascus that killed five people.
Both developments are cause for worry about, first, oil supply from one of the world’s top three exporters, and, second, a significant escalation in the Middle East that could threaten the security of oil supply.
In addition to all this, Mexico’s Pemex said it would reduce exports of crude oil by over 400,000 bpd as it diverts barrels to local processing capacity, Bloomberg reported this week.
Citing unnamed sources, the publication wrote that Pemex had canceled several delivery contracts with U.S., European, and Asian clients to move more oil to the new Dos Bocas refinery aiming to boost domestic fuel production ahead of the presidential vote in June.
Now focus is on the OPEC+ meeting today, where members are expected to stay the course of limited oil production until the end of June, at least.
This means persistently tight supply that will likely push prices higher still, especially as neither Ukraine has any intention to stop droning Russian refineries nor Israel has any intention of changing course in what increasingly seems like a war on all anti-Israel groups in the Middle East.
Even so, some analysts still expect lower prices—because of Chinese demand.
“Brent oil futures should track closer to $75 to $80 a barrel in coming months given our view that China’s oil demand growth will disappoint,” Commonwealth Bank of Australia analyst Vivek Dhar told Bloomberg earlier today.
This is an interesting expectation given the latest manufacturing figures out of Beijing that showed a pickup in activity—for the first time in six months.
Source: Irina Slav
Ghana: NPA Issues Petroleum Products Guidelines…Sets Price Floors For BIDECs, OMCs
Ghana’s petroleum downstream regulator – National Petroleum Authority (NPA) – has amended its petroleum pricing guidelines to, among other things, prevent oil marketing companies (OMCs) and liquefied petroleum gas marketing companies (LPGMCs) from selling products below benchmark price.
The petroleum downstream sector of the West African nation is deregulated, that is, fuel prices are determined by factors including the cost of finished products on the global market and exchange rate.
However, the regulator, in a letter to industry signed by the Deputy Chief Executive, Curtis Perry Okudzeto, for the chief executive officer, said beginning from April 1, it shall set and communicate price floors for the deregulated products, namely gasoline (petrol), gasoil (diesel), kerosene, liquefied petroleum gas (LPG) and marine gas oil for each pricing window, which is 1st to 15th of each month and 16th to 30th of each month.
For the regulated products, namely premix fuel, residual fuel oil (RFO), aviation turbine kerosene (ATK), gasoil mines, gasoil rig and marine gasoil (MGO) foreign, the regulator said it shall determine their prices and communicate to stakeholders prior to the start of every pricing window.
The move is part of efforts to deal with concerns from industry players about serious price undercutting in the industry by some oil marketing companies in the country.
The National Petroleum Authority promised that it shall periodically furnish Petroleum Service Providers with the full pricing formula stating the specific taxes, levies, and margins applicable for each pricing window in excel format.
“Bulk import, distribution and export companies (BIDECs) will independently
determine suppliers’ premiums and exchange rates used in setting their ex-refinery prices, while Oil/LPG marketing companies (OMCs/LPGMCs) will
independently determine the marketers’ and dealers’ margins used in setting their ex-pump prices.
“The applicable pricing benchmarks are to be used as the reference for the FOB prices as well as the conversion factors for each product,” the letter said.
“OMCs and LPGMCs shall ensure that all retail outlets operating under their sponsorship always have a uniform ex-pump price, and that these prices are the same as those that have been communicated to the NPA.
The letter mentioned that notwithstanding the above, a retail outlet may offer discounts to consumers. However, this discount shall not exceed 2% of the prevailing ex-pump price of its sponsoring OMC or LPGMC.
“OMCs shall not sell products that are regulated above the prices communicated
by the NPA,” it said.
The NPA cautioned that Oil Marketing Companies that fail to comply with the guidelines could be fined from 5,000 to 20,000 Ghana Cedis thousand for violating any of the specific guidelines.
The National Petroleum Authority has given the firm assurance that it will not hesitate to sanction any Oil Marketing Company, Bulk Oil Distribution firm and Liquefied Petroleum Gas Marketing Company if they fail to comply with these new guidelines as they were based on recommendations from the various players in the industry.
Mechanism For Setting Ex-Refinery And Ex-Pump Price Floors
Ex-Refinery Price Floor:- Average FOB price for the window.
- All known fixed costs that apply to imports (excluding IOTC premium and BIDEC margin).
- BoG FX rate from the auction for the window.
- Ex-Refinery price floor for the window.
- Taxes, levies and margins in the PBU for the window (excluding OMC/LPGMC margin).
- IOTC premiums and BIDEC margins vary for each BIDEC hence they are considered as variable costs which they will independently determine. This allows for competitive pricing amongst them.
- The BoG FX rate for each window is to be used because its can easily be referred to and is general to all BIDECs. It is also mostly the least FX rate for each window.
- OMC/LPGMC margins are excluded to allow them to determine their own margins, and allows for competitive pricing amongst them.
Ukrainian Drones Hit Russia’s Third-Largest Oil Refinery
Ukrainian drones hit the primary refining unit of Russia’s third-largest refinery southeast of Moscow more than 800 miles from the front line, Reuters reported on Tuesday.
The Taneco refinery of Russian company Tatneft in Tatarstan, an industrialized region southeast of Moscow, was attacked by Ukrainian drones in the latest such attack from Ukraine on Russian refining infrastructure.
The refinery has a capacity to process 340,000 barrels per day (bpd) of crude. Its primary refining unit, with a capacity to process about 155,000 bpd, was hit in Tuesday’s attack, according to pictures seen by Reuters.
The unit caught fire, which was swiftly extinguished, Russian media report.
They also quote Ramil Mullin, the mayor of the city of Nizhnekamsk, where the refinery is located, as saying that there have been no injured people in the attack.
“There are no injuries or serious damage,” Mullin wrote on Telegram.
“The technological process of the enterprise has not been disrupted,” the mayor added.
A source with the Ukrainian intelligence in Kyiv told Reuters that Ukraine hit a major Russian oil facility in Tatarstan to reduce Russian oil revenues.
Ukraine has stepped up attacks on oil refineries in Russia in recent weeks, which have reduced Russian refining capacity, and which, reportedly, have the White House concerned about rising international prices.
The United States has repeatedly urged Ukraine to halt its drone attacks on Russian oil refineries due to Washington’s assessment that the strikes could lead to Russian retaliation and push up global oil prices, the Financial Times reported last month, citing sources familiar with the exchange.
According to Reuters estimates, the amount of Russian oil refining capacity that has been taken offline due to Ukrainian drone strikes is 14% of Russia’s total refining capacity.
Calculations show that 900,000 bpd of refining capacity have been taken offline by drone strikes, Reuters reported last week
Source: Oilprice.com
South Africa: Motorists Outraged By Yet Another Fuel Price Hike
Motorists in South Africa have expressed outrage over yet another fuel price hike which will take effect on Wednesday.
The Energy Department said the price of 93 unleaded petrol will increase by 65 cents per litre and 95 unleaded by 67 cents.
Diesel with higher sulphur content will go up by just more than three cents a litre while low sulphur diesel will decrease by one-point-seven-eight cents.
Some motorists who spoke to state broadcaster, SABC described the increment as unjust.
“Just when we thought this country couldn’t get any worse, we are seeing another fuel increase.
“It is just getting really difficult because we live month to month and our salary doesn’t even cover the basic stuff we need and here we are.
“The upcoming fuel prices makes me so frustrated because water and electricity is already so high and now the fuel is also going up, like the cost of living is so high and I am frustrated and tired and sick of this,” some motorists said as reported by SABC.
The prices take effect from midnight on Tuesday next week.
The department says the wholesale price of illuminating paraffin will decline by 29 cents a litre.
The increases are attributed to a slew of factors including an increase in the slate levy, higher carbon fuel levy and rising international oil prices.
Source: https://energynewsafrica.com
South Africa: Eskom Applies Electricity Tariff Increase
The price of electricity will increase this week, following Eskom’s implementation of its new electricity tariff of between 12.72% and 12.74%.
This after the National Energy Regulator of South Africa (NERSA) determined the increases in December last year.
The increases are as follows:
- Local Authority Tariff Charges: 1 July 2024 – 30 June 2025: 12.72%
- Eskom Direct Customers: 1 April 2024 – 31 March 2025:
- All tariff charges except the affordability subsidy charge: 12.74%.
- Homelight 20A: 12.74%.
- Affordability Subsidy Charge: 25.24%
Ghana: GRIDCo’s Silence On Happenings In Power Sector Unusual – IES
The Institute for Energy Security (IES), one of the think tanks in the energy sector, has urged Ghana’s power transmission company – Ghana Grid Company Limited (GRIDCo) – to break its silence on the happenings in the sector.
According to IES, GRIDCo’s silence on the current happenings in the energy sector is unusual of the company.
A statement issued by its Executive Director, Nana Amoasi VII, expressed worry about what he called misleading statements by the power distribution company – Electricity Company of Ghana (ECG) – that sought to equate “stable national power supply” to “stable national grid”.
“The IES is scandalised by this misleading statement, and the inconsistencies in ECG’s public releases relative to the recent power outages being recorded across the country.
“These public relation (PR) gimmicks by the ECG are unwarranted, disgusting, and diversionary, capable of denting the reputation and credibility of the institution,” Nana Amoasi VII said.
Below is the full statement
The attention of the Institute for Energy Security (IES) has been drawn to yet another statement from the Electricity Company of Ghana (ECG), which states that “The Electricity Company of Ghana wishes to inform our cherished customers and the general public that we have a stable national power supply (stable national grid).”
“The IES is scandalised by this misleading statement, and the inconsistencies in ECG’s public releases relative to the recent power outages being recorded across the country.
In the recent statement, the ECG sought to equate “stable national power supply” to “stable national grid,” both of which are non-existent in our present power sub-sector.
The IES is appalled by the extent to which the ECG is permitting the powers that be to frustrate its eligible business and to embarrass itself in the eye of the public. These public relation (PR) gimmicks by the ECG are unwarranted, disgusting, and diversionary; capable of denting the reputation and credibility of the institution.
In any case, how can we have a stable national power supply when since the start of the year, the ECG barely receives from GRIDCo 85% of power required to fully meet the demand of its customers.
Again, one wonders the capacity of the ECG to confidently suggest that Ghana has a stable national grid.
Where the power sector finds itself today, the best utility to speak to issues of power supply stability and grid stability Is the system operator the Ghana Grid Company Limited (GRIDCo). Unfortunately, GRIDCo has gone mute, an attitude uncharacteristic of the entity.
IES’ Demands
1. The Ghana Grid Company Limited (GRIDCo) must break its silence on happenings in the power sector and be willing to indicate to the Electricity Company of Ghana (ECG) the quantum of power that could be made available to the ECG within a set time frame. Such an information is vital for the ECG to plan its load response with a timetable.
2. The ECG must concern itself with its load management based on the quantum of power made available by GRIDCo, as well as its effective mobilisation of revenue; necessary to prove full cost recovery.
3. The Public Utility and Regulatory Commission (PURC) must look beyond the ECG to audit the upstream segment of the power sub-sector, particularly the GRIDCo, and export sales by the Volta River Authority (VRA).
4. The Minister of Energy, and by extension, the government must allow the ECG to freely deliver its mandate without the usual political interference. The best intervention Ghanaians can expect from government at this critical moment is to cause the ECG and GRIDCo to cooperate so a load-shedding timetable can be issued as expected by Ghanaians.
Thank you.
SIGNED
NANA AMOASI VII
EXECUTIVE DIRECTOR, IES
Source: https://energynewsafrica.com
Nigeria: Tinubu, Nigeria Needs Stable Electricity Supply(Article)
It is very disheartening that in 2024, the provision of a stable electricity supply remains a political campaign rhetoric.
Nigeria is a laughing stock of the global community as a country whose citizens rely on different sizes and shapes of private electricity generators to power their homes and businesses. Billions of dollars of investments in the power sector have only yielded a mere 4,500 megawatts of public electricity supply.
All the various reforms including privatisation of electricity generation and distribution haven’t impacted positively on the electricity supply chain. Even the payment of subsidies to power distribution companies has not made electricity readily available to consumers.
Nigeria at present has 27 electricity generating companies popularly called GenCos and 11 power distribution companies better known as DisCos and they include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola DisCos.
The Minister of Power, Chief Adebayo Adelabu, recently disclosed that the Federal Government is subsidising the electricity bills of consumers nationwide by about 65 per cent.
Quite unfortunately, despite the widespread blackout and the worsening state of electricity supply in Nigeria, the recent figures on the daily load summary of power distribution companies indicate that the firms failed to distribute about 1,769.91 megawatts of electricity between February 1 and 14, 2024.
According to the March 5, 2024 edition of this newspaper, “Findings revealed that some distribution companies were deliberately not taking up power supply from the Transmission Company of Nigeria while some power lines were also damaged by vandals in Abuja, Benin, Port Harcourt and Ibadan regions.”
There are myriads of challenges facing Nigeria’s electricity sector. There is the problem of vandalism of electricity installations including transmission lines and cables. The Guardian newspaper of March 26, 2024, reported that between January 2022 and March 2024, 117 transmission towers have been vandalised by unscrupulous elements.
It cost the TCN N110m to repair each of the vandalised towers. Poor wheeling capacity and grid collapse have kept the transmission of electricity below 4, 500MW.
Meanwhile, over $7bn was borrowed by the immediate past administration of President Muhammadu Buhari to fix the transmission infrastructure. Can sabotage be ruled out of these acts of vandalism?
Aside from this, the Federal Government owes gas suppliers and electricity-generating companies huge sums of money. Likewise, customers – government ministries, departments and agencies, hospitals, military institutions and individuals – owe distribution companies billions of naira.
On Monday, February 19, 2024, the Abuja Electricity Distribution Company threatened to disconnect the electricity supply to the Presidential Villa and 86 Federal Government’s MDAs over N47.195bn outstanding debts as of December 2023.
Some of the affected MDAs are Chief of Defence Staff – Barracks and military formations owing N12bn, the Federal Capital Territory ministry, Ministry of Finance, Ministry of State Petroleum, Ministry of Health, Ministry of Information, Ministry of Education, Ministry of Agriculture.
Others are the Federal Inland Revenue Service, Ministry of Education, Central Bank of Nigeria, Ministry of Foreign Affairs, Ministry of Budget and National Planning, Ministry of Culture and Tourism, Ministry of Interior, Head ECOWAS, and Ministry of Transport, among others.
Furthermore, the Ibadan Electricity Distribution Company better known as IBEDC has disconnected electricity supply to the University College Hospital, Ibadan thrice this year alone over N495m debt.
Other challenges being faced by DisCos include energy theft whereby unscrupulous customers bypass meters and connect their high-electricity consuming devices such as air-conditioners and cookers directly without any meter reading.
On the part of the electricity consumers, they still face the problem of estimated billings for homes, offices and businesses without pre-paid meters. Supply of pre-paid meters has been tardy even as customers pay exorbitant fees for what was initially meant to be supplied to them for free.
Clearing faults is not prompt as many technical staff members of distribution companies demand bribes before coming around to clear faults at the transformers or electricity poles.
SERVICOM does not exist in the lexicon of DisCos. Every opportunity to exploit customers is explored.
If Nigeria is not doing well in the supply of public electricity to her citizens, she’s in a good company. Most African countries are similarly performing woefully. My research shows that Africa has 18 per cent of the world’s population, but just 3 per cent of the world’s electricity generation. However, South Africa and Ghana are the shining lights.
According to the Ministry of Mineral Resources and Energy, South Africa’s total domestic electricity generation capacity is 58,095MW from all sources.
The total installed capacity for existing plants in Ghana is 5,134 MW, with a dependable capacity of 4,710 MW. Thermal generation accounts for the largest share of Ghana’s power generation, representing 66 per cent, with hydro accounting for 33 per cent. Ghana exports power to Togo, Benin, and Burkina Faso.
What are the likely impacts of the lack of public electricity supply?
The first is the exponential increase in the cost of doing business. With petrol selling at about N700 per litre and diesel at about N1,500, it costs a lot more to run factories, industries and even small-scale businesses on power-generating sets. Doing so will make the cost of goods and services to be expensive.
The noise pollution generated by private electricity generating sets and the carbon monoxide fumes emitted from the exhaust pipes of these devices pollute the environment and have killed many people who operate these devices in ill-ventilated enclosures.
Epileptic electricity supply has prevented many wives from making bulk purchases as their fridges and freezers lack electricity to power them to preserve items meant for storage. In this heat period, many people are suffering from heat rashes and meningitis due to lack of electricity to power their air conditioners and fans. It’s quite frustrating when there is no public electricity supply.
This is because most Information Communication Technology and electronic gadgets are powered by electricity thus, once there is no electricity to power them, they are just like a piece of monuments.
Tinubu and his Minister of Power, Adebayo Adelabu (grandson of the maverick politician, Adegoke Adelabu of Penkelemes fame in Ibadan), should do all they can to deliver a stable electricity supply to Nigerians because there lies the key to unlock Nigeria’s economic growth and development.
I do hope taking electricity from exclusive to concurrent legislative list and other legal reforms recently initiated by President Tinubu will yield positive results.
Source: Jide Ojo
This article was first published by Punch Nigeria
Tanzania: Power Restored After Nationwide Blackout
Power has been restored in Tanzania after a massive nationwide blackout that affected several islands and most of the mainland on Monday.
The electricity outage struck shortly after 02:00 local time on Monday, privately owned newspaper Daily Citizen reported.
State-run power company Tanesco said the outage was caused by a technical fault at the Kidatu hydroelectric power plant in the east of the country.
Its water intake control equipment was affected.
The fault resulted in large volumes of water entering the systems, causing them to “suddenly shut down to protect themselves”, and in turn impacting the national power grid, Tanesco added.
Energy Minister Doto Mashaka Biteko ordered power officials who were on their Easter break to return to work immediately in order to restore power supplies.
On Monday evening, Tanesco said it had restored power to most parts of the country, although several Tanzanians continued to complain of outages on social media.
Source: BBC
France Set To Commission New Nuclear Plant
France’s state-owned energy company EDF announced last week that the nuclear supervisory authority had approved final preparatory steps for putting a new reactor into operation.
The plant is now meant to be loaded with nuclear fuel in the coming weeks.
The reactor, in Flamanville on the English Channel, is scheduled to be connected to the grid in mid-2024 — 12 years later than initially planned — and will be the first to be commissioned by France in more than two decades.
Massively over-budget
Construction of the Flamanville reactor started in 2007.
The facility was originally planned to cost €3.3 billion ($3.6 billion), but it is now expected to eat up more than €12 billion.
Work on the reactor has been plagued by delays, with leaking weld seams in the steel shell the most recent cause.
France, the second largest producer of nuclear power in the world after the US, is considering the construction of 14 or even more new plants amid a nuclear revival prompted partly by concerns about global warming.
It is also planning to extend the operating life of 32 of its 56 existing reactors if safety concerns are met.
France’s plans are in stark contrast to those of neighboring Germany, where nuclear power has been phased out amid a planned transition to renewable sources of energy such as wind.
Source : DW
Zambia: Zesco Begins Load-shedding In Parts Of Lusaka
Zambia’s power utility company, Zesco Limited, has announced plans to implement a staggered eight-hour daily load-shedding for some residential areas in Lusaka, the capital of Zambia, beginning April 1.
According to the power distribution company, the affected areas will experience two power outages of four hours each, spread throughout the day.
In a statement issued by Matongo Maumbi, spokesperson for Zesco Limited, it said the aim of the load-shedding is to minimise disruption and ensure grid stability due to low generation capacity.
The Southern African nation has an installed generation capacity of 3356.6MW.
This capacity comprises of 83 percent of hydro, nine percent of coal, five percent of heavy fuel oil and three percent solar PV.
The mining sector remains the largest consumer of power at 51 per cent of total generated electricity, followed by the domestic sector at 33 per cent.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Ghana: Jubilee Oil Field Partners Commit To Raise US$704 Million Towards Decommissioning In 2036
Ghana has started the processes for the Jubilee Oil Field Decommissioning which is about twelve years away by signing an agreement with all the partners involved in the operation of the field.
The decommissioning of the field is expected to cost about US$704 million and for this reason, Ghana and Jubilee partners have consented to create a Trust Fund where monies could be lodged by the partners based on the Petroleum Agreement covering the field and used for the decommissioning of the field in 2036.
Last Monday, officials of the Ministry of Finance, Bank of Ghana, Petroleum Commission and Jubilee partners namely Tullow Ghana Ltd, Kosmos Energy, Petro SA and the GNPC convened at the Ministry of Energy to sign agreements to that effect.
Speaking before the signing of the agreements, the Chief Director for the Ministry of Energy, Mrs. Wilhelmina Asamoah said despite the several challenges along the way, the relevant stakeholders remained focused and would work hard towards the realisation of the huge landmark ahead.
The sector Minister, Dr. Prempeh noted that the successful establishment of the Fund and the effective discharge of obligations by the contractor parties and trustee would ensure the availability of adequate measures for decommissioning the Jubilee Field upon reaching the end of its operational life.
“This will address environmental, health and safety concerns and facilitate the restoration of lands affected by petroleum operations conducted in the Jubilee Field,” he stated.
The Minister further paid tribute to all who played varying roles on this important journey.
In 2019, Tullow Ghana Limited notified the Ministry of Energy of the necessity to initiate the fulfilment of the Conditions Precedent for establishing the Jubilee Decommissioning Trust Fund, as stipulated in the Unitisation and Unit Operating Agreement (UUOA).
Dr. Prempeh noted that the appointment of the Bank of Ghana as Trustee for the Decommissioning Fund sets a crucial precedent for decommissioning procedures in all other producing fields in Ghana.
“As stewards of state institutions and industry entities, we bear the responsibility to ensure the restoration of affected lands at the conclusion of the exploration and production life of an oil field, and this ceremony marks an important milestone in the realisation of this important duty to the good people of Ghana” the Minister noted.
Source: https://energynewsafrica.com
Russia To Cut Oil Production By 350,000 bpd In April
Russia will be cutting oil production instead of exports in the second quarter of 2024 so that all OPEC+ producers that reduce output contribute equally to the cuts, Russian Deputy Prime Minister Alexander Novak said on Friday.
“This is a move to ensure an equal contribution of all countries to the production cuts,” Novak was quoted as saying by Russian news agency Interfax.
“The moment has come when we are reducing production instead of exports,” Russia’s top oil official added.
When the OPEC+ members announced in early March their intentions to extend the cuts into the second quarter, Russia changed its production/ export cut plan and said that it in the second quarter it would reduce supply by 471,000 bpd in the form of cuts to oil production and exports.
In April, Russia will reduce production by 350,000 bpd and exports by 121,000 bpd. In May, the 471,000 bpd reduction would be in the form of a 400,000-bpd cut to production and 71,000 bpd cut to exports, and in June the Russian supply cut would be 471,000 bpd entirely from production reductions.
Output cuts will be most of the extra Russian supply cut, and they could be the result of reduced refining capacity with maintenance coming in Q2 and refinery rates estimated to have slumped due to Ukrainian drone attacks on Russian refineries. These attacks are estimated to have cut Russia’s crude processing capacity and, in the absence of spare storage capacity, Moscow needs to cut output.
According to Reuters estimates, the amount of Russian oil refining capacity that has been taken offline due to Ukrainian drone strikes is 14% of the total refining capacity.
Calculations show that 900,000 barrels per day of refining capacity have been taken offline by drone strikes, Reuters reported earlier in the week. This includes Lukoil’s Norsi and Volgograd refineries, and Rosneft’s Kuibyshev and Ryazan refineries, among others.
Source: Charles Kennedy
Ghana: Gov’t Suspends Price Stabilisation And Recovery Levy On Fuel For Three Months
The Government of Ghana has directed the National Petroleum Authority (NPA) to suspend Price Stabilisation and Recovery Levy (PSRL), one of the levies on petroleum products, for three months effective April 1, 2024.
Consequently, the price of petrol will be reduced by 16 pesewas while diesel and LPG will be reduced by 14 pesewas respectively.
This is expected to cushion consumers from paying high costs of fuel at the pumps due to rising global prices.
A letter signed by the Deputy CEO of NPA, Perry Okudzeto, to all the players in the oil and marketing distribution sector said the suspension is effective from 1st April to 30th June 2024.
“The Ministry of Finance, through the Energy Ministry, has directed the National Petroleum Authority (NPA) to remove the price stabilisation and recovery levy (PSRL) from price build in accordance with section 2(b) of the Energy Sector Recovery Levies Act 2015(Act 899) amended 2021 Act 1064 for three months.
“In view of the above directive, the NPA, hereby, wishes to inform all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) that the PSRL has been revised for the period 1st April to 30th June 2024,” the letter said.
Despite the suspension of the PSRL, fuel prices are likely to witness a marginal increase due to the exchange rate and rising cost of finished products on the international market.
Currently, the three major OMCs namely GOIL, Shell and TotalEnergies are selling petrol and diesel at Gh¢13.49 per litre and Gh¢14.49 per litre respectfully.
Source: https://energynewsafrica.com
South Africa: Eskom Cuts Off Cape Town School For Failing To Pay R39,000 Bill
A primary school in Delft, Cape Town owed Eskom about R39,000 and has been without electricity since February.
The education department is trying to assist the school but this is not the first time it has been bailed out.
Vergenoegd Primary is a non-fee paying school, which means it is allocated money by the Western Cape Education Department (WCED).
But the school is responsible for using that money, including ordering stationery and textbooks, paying water and electricity accounts and undertaking maintenance.
The school has over 1,500 learners.
Despite attempts to make payment arrangements with Eskom, a teacher who asked not to be named, says the power utility has been unwilling to assist the school.
The teacher said the staff were shocked when Eskom cut the school’s power. The teacher said the school had discovered that its bursar office missed payments from August 2023.
By the time the fault was discovered, Eskom said they had accumulated arrears of about R28,000, which the school could not afford to pay.
On 9 March, the school held a food fair on its premises to raise emergency funds to pay their outstanding bill. They raised about R20,500. It was apparently paid to Eskom the next week.
According to the teacher, the school contacted Eskom again after making the payment to ask that their electricity be reconnected, but Eskom refused because the school was still many thousands of rands in arrears.
In email correspondence between Eskom and the school, which GroundUp has seen, Eskom confirmed it had received the school’s payment of R20,500.
But since the school’s account was already R39,000 in arrears, it needed to pay at least R15,000 of the R18,500 that it owes, as well as a R2,070 reconnection fee before electricity could be reconnected.
The teacher said the school is still investigating why its bursar’s office had failed to pay the power utility.
WCED spokesperson Bronagh Hammond said the district office is aware of the issues and is working with the school to resolve this matter.
Hammond said Vergenoegd Primary received more than R1.8-million in 2023 to cover expenses like municipal services and utility accounts. “As a Section 21 school, it receives the total allocation to manage accordingly,” she said.
Hammond said that in the last two years, the WCED has assisted the school with nearly R480,000 to pay its outstanding municipal debt.
Eskom spokesperson Kyle Cookson said that the power utility had notified the department’s district office before disconnecting the school on 27 February.
Cookson confirmed that the school remains without electricity.
“The school ran up arrears and made a short payment on 12 March after they were disconnected. This payment was not sufficient to cover the arrears as well as the reconnection fee,” he said.
Cookson did not comment on the allegation that Eskom was not willing to agree to a payment arrangement with the school.
Source: mybroadband.co.za