Biden Calls On Congress To Suspend Federal Gas Tax
U.S. President Joe Biden has called on Congress to suspend the federal gas tax for the next 90 days.
“Today, I’m calling on Congress to suspend the federal gas tax for the next 90 days through the busy summer season—the busy travel season,” the President said on Wednesday.
The suspension of the gas tax—effectively a federal gas tax holiday–would amount to an 18 cent reduction in the price of gasoline and a 24 cent reduction in the price of diesel.
“I call on the companies to pass this along—every penny of this 18 cent reduction—to the consumer. This is no time now for profiteering.”
President Biden also called on Congress to move other proposals forward that are moving through the House and Senate.
The President also suggested that further reductions in the gasoline prices could come from suspending state gas taxes as well.
Biden stressed that this gas tax holiday—whether a federal gas tax holiday or a combination of federal and state gas tax holidays—alone won’t fix the problem.
President Biden asked the industry to refine more oil into gasoline to bring down gas prices, arguing that the high gas prices weren’t due to a lack of crude oil production, but a lack of refining.
“I’m calling on the industry to refine more oil into gasoline and to bring down gas prices,” Biden said. U.S. refiners are currently operating at 93.7% of their operable capacity, according to the Energy Information Administration.
“I know my Republican friends claim we’re not producing enough oil and I’m limiting oil production. Quite frankly, that’s nonsense. Here’s the truth: just this month, America produced 12 million barrels of oil per day—that’s higher than average under my predecessor,” Biden said, citing the prowess of the U.S. crude oil industry under his administration.
U.S. crude oil production averaged 12.289 million bpd in 2019–the year before the pandemic under U.S. President Donald Trump, before sinking as oil companies responded to the reduced demand. Last year, U.S. crude production averaged just 11.188 million bpd.
Biden called on the oil companies to work with my admin to bring refineries that were shut during the pandemic back online.
A meeting is scheduled for Thursday between some of the largest U.S. refiners and U.S. Secretary Jennifer Granholm to discuss ways to accomplish this.
Source: Oilprice.com
Ayodele Calls For Better Cooperation For Improved Energy Demand &Supply In Africa
Lack of keeping accurate data for energy demand across African countries has been one of the banes affecting the improvement of power in the energy sector for optimal performance.
The Chief Operating Officer of Ibadan Electricity Distribution Company (IBEDC), Engr John Ayodele, made this assertion at the Power and Water Exhibition & Conference in Lagos on Tuesday 21st June this year.
The conference, designed to deliberate on problems bedevilling the Energy and Water sector as well as proffer solutions to tackle some of them, attracted a global audience with a common goal.
Engr Ayodele, who was a panellist at the discussant level on ‘Together for A Better Tomorrow-Regional Electricity Cooperation and Integration’, opined: “African nations should devote parts of the money used for ammunition on electricity as such move will have a direct improvement in the standard of living in the continent.”
According to him, “for Africa to be self-sufficient, we must integrate ourselves and be willing to do the needful.”
He said the Conference came up at a very appropriate time with huge responsibilities on stakeholders to look for solutions, engage in technical discussion and do a-spot assessment of the region’s opportunities in power generation and distribution.”
The IBEDC COO expressed confidence that “the event provides the opportunity for the players in the industry to be acquainted with innovations and inventions that will greatly improve our services to our esteemed customers.”
The 3-day event tagged Digitalization, Sustainability and Optimization is a brainchild of Vertex NEXT, a global business optimization solutions provider.
Source: https://energynewsafrica.com
Ghana: Frustrated Napo Washes Hands Off Tema Oil Refinery Affairs Due To Interference
Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh, who is popularly known as Napo, is in pain and getting frustrated each passing day due to interferences in his role by relatives of the President.
Opoku Prempeh, who is supervising 15 energy sector agencies under his ministry, has allegedly washed off his hands of Tema Oil Refinery (TOR) after people close to His Excellency President Akufo-Addo managed to put pressure on him to get the Interim Management Committee (IMC) he constituted after the dismissal of the Managing Director, Francis Boateng, and his deputy, Mr. Ato Morrison, to pack out and brought in their darling boy Mr. Jerry Kofi Hinson, as the new Managing Director of TOR.
The three-member Interim Management Committee (IMC) chaired by Ing Norbert Cormla -Djamposu Anku among other things was to do comprehensive auditing of TOR.
A few weeks into their role, the IMC uncovered massive rot in the refinery.
A statement issued by the IMC said its investigation uncovered the disappearance of 18 drums of electrical cables valued at Ghc10.4 million, the disappearance of LPG belonging to a client between 2012 and 2015 as a result of which TOR became indebted to the client to the tune of US$4.8 million.
Also, the IMC revealed the disappearance of 105,927 litres of gas oil on September 4, 2021.
In addition, there was a wrongful loading of 252,000 litres of Aviation Turbine Kerosene (ATK) instead of regular kerosene into BRV trucks at the loading gantry between September 21 and September 25, 2021.
In the process, 14 top management executives were interdicted.
They included Daniel Osei Appiah, Director for Finance; Abraham Quayson, GM Production; Julius Ogo at the RFCC; Christopher Boateng, Movement of Product Unit; Daniel Fugah, Production Unit; Kobina Takyi Koomson, Production Unit; Matthew Adu-Gyamfi, Production Unit.
The rest were William Frimpong, Production Unit, Emmanuel Tetteh Doku, Movement of Production Unit; Edmond Kojo Baiden, Movement of Product Unit; George Kweku Gaisie, Finance Department; Joseph Akure, Finance Department; Abu Osman, Distribution; and Victor Dekayie, Import & Export (Shipping).
Surprisingly, the Minister’s effort, through the IMC to weed out bad elements from the nation’s premier refinery, seems to have stepped on toes within the government and executives of senior staff association who are allegedly members of the opposition National Democratic Congress (NDC).
Energynewsafrica.com’s sources within the refinery some weeks ago indicated that the Union was putting pressure on President Akufo-Addo’s relative, Mr Gabby Asare Otchere Bediako, to get the interdicted staff reinstated.
The information available to energynrwsafrica.com indicates that two of the interdicted staff were recalled last month and were working when the new Managing Director, Jerry Kofi Hinson, who was the hand man of Gabby Asare Otchere Darko, assumed post few weeks ago.
The latest development indicates that six of the 14 people have also been recalled and are due to start work this by the end of this month, confirming the claim that the Union was putting pressure on President Akufo-Addo’s cousin to get them back to work.
A letter to one of the interdicted staff sighted by energynewsafrica.com reads, “You are hereby declared fully exonerated from the incident and are being requested to report to work on Tuesday 28th June 2022.”
The exonerated workers include Mr Emmanuel Tetteh Doku, MOP Unit; Mr Joseph Akuure of the Finance Unit; Mr George Kweku Gaisie also from Finance; Edmund Kojo Baiden from Movement of Product (MOP); Mr Victor Dekayie, Import and Export Unit; who are all senior staff, and junior staff, Mr Abu Osman from the Distribution Unit.
“By a copy of this letter, the Acting General Manager (GM) for Finance is requested to restore your full salary and benefits from the date of interdiction to date, as per the Human Resource Management, Administrative Policies, Systems and Procedures Manual Section 6.3.1 and Article 55 Section 7 of the Collective Agreement between Tema Oil Refinery (TOR) and the Union of Industry, Commerce and Finance Workers (UNICOF).
“Management recognises the inherent difficulties you have encountered in having to stay away from under such anxious circumstances and is appreciative of your patience,” another letter to the senior staff from the Finance Department in our possession stated.
This move by the new management has eroded the confidence the staff had in the turnaround of the refinery.
Energynewsafrica.com checks at the refinery have revealed that there is despondency apparently among the staff.
During the few months the IMC stayed at the refinery, they were able to put control measures in place and have helped to stem product losses.
“We have not witnessed product losses for the past few months,” Ing Norbert Anku, Chairman of the IMC told energynewsafrica.com before their exit.
He told this portal that they had plans to enhance the security of products by installing flow meters at the loading gantry, constructing a new laboratory, refurbishing the gantry and installing a Close Circuit Television (CCTV) at the refinery.
He was of the view that when these things were done, they would go a long way to guarantee product security at the refinery.
Energnewafrica.com is reliably informed that the IMC engaged Intercontinental Energy Consortium and was working very hard to agree with them to come on board as a strategic partner.
Sadly, energynewsafrica.com is reliably informed that the new MD, backed by President Akufo-Addo’s relative, is planning to bring Decimal Capital Ltd., a private limited liability company offering financial solutions to a wide variety of individuals and business.
Many industry players and watchers are worried about the current situation at TOR.
The question many people are asking is, if the new management claims the interdicted staff are not culpable for the financial losses recorded in TOR, then who are the culprits? Again, who took the 18 drums of cables worth GH10 million?
Stay tuned for more
Source: https://energynewsafrica.com
The Cost Of A Litre Of Petrol, Diesel In Some West African Nations
As the price of crude oil continues to soar on the global market, fuel prices are also witnessing hikes either on a weekly or on monthly basis across the globe, especially in Africa.
The rising cost of fuel is making life unbearable to most people, especially in low-income areas.
Energynewsafrica.com has compiled this data to help our readers to be abreast of the cost of a litre of petrol and diesel sold in some African nations.
Ghana: ECG Training School Trains Sierra Leone Engineers
The Managing Director of the Electricity Company of Ghana (ECG), Mr. Samuel Dubik Masubir Mahama, has launched a one-month World Bank-sponsored training course on Electric Distribution Power Systems Planning, Design and Operations for engineers of the Electricity Distribution and Supply Authority of Sierra Leone (EDSA) in Tema in the Greater Accra Region of Republic of Ghana.
Speaking at the launch of the training, Mr Samuel Mahama admonished the participants to take the course seriously and to ensure that they are up to the task of keeping the supply on for the customer while ensuring profitability for their company.
He added that “at the end of the day, it doesn’t matter how genius an engineering work is if it is unable to maintain supply and ensure that the business remains relevant and viable.”
He noted that for every business to be in good standing, a lot depends on the employees who are charged with manning various aspects of the operations to ensure that the business grows.
A representative of EDSA, Mr Peter Kamuray, who spoke at the event, appreciated the relationship between Ghana and Sierra Leone and hoped that it would keep getting better.
According to him, four years ago, access to energy in his home country stood at 11 per cent.
He, however, said with deliberate planning, that figure rose to 33 per cent and that there are plans to increase this.
Mr. Kamuray mentioned that the capacity training instituted for the engineers of EDSA is part of the deliberate attempt at augmenting their energy access as they would need engineers to man the various aspects of the energy supply network.
The Director for ECG Training School, Ing. Dr. Marfo informed the participating engineers that the training would be made up of thirty per cent theory and 70 per cent practical.
He charged them to be diligent and interested in what they would be taught so that they can, on their own, manage the electricity supply system of EDSA on their own, without having to rely much on external support.
Dr. Marfo also appreciated the Management of ECG and EDSA for the training session, while he specifically mentioned and appreciated the World Bank for sponsoring the training programme.
Source: https://energynewsafrica.com
Nigeria: We Feel Your Pain And Are Working To Fix Power Challenges-AEDC To Customers
The Abuja Electricity Distribution Company (AEDC) has assured customers in its franchise area that it has adopted several measures to boost power generation to ensure quality and reliable power supply.
According to AEDC, it feels the pain and trauma its customers are going through due to low generation and system instability and has, therefore, worked in concert with partners and other stakeholders to address the problem.
In a statement, AEDC said the number of interventions includes a discussion with some power developers capable of giving them within a few months a good level of embedded generation.
“We also write to intimate you, our dear customers, of some quick-win intervention projects that we, as Abuja Electricity, have specifically recently undertaken with the sole objective of quickly improving the supply of power to our franchise area. First amongst this is the fact that we are in various stages of discussions with some power developers capable of giving us, within a few months, a good level of embedded power generation to boost and complement whatever else we get from the National Grid, this is especially to improve supply to Metropolitan FCT.
“Additionally, aside from the low generation being experienced nationwide, we at AEDC have embarked upon some 40 Quick win projects that are geared towards rehabilitating our network and thereby increasing availability and customer satisfaction. They range from de-loading the overloaded feeders, Purchase 81 new distribution transformers and repair of 78 existing distribution transformers. We are also carrying out major maintenance on 34 power transformers.
“We assure you again that our sincere and much-desired goal is to provide you with acceptable levels of power always. Our collective effort as a management team in the pursuit of this goal is not limited only to the above-mentioned interventions. We seek new ways every day to achieve this objective very quickly and efficiently. And we commit to you that in a matter of weeks to a few months (staggered), depending on the duration of these different projects, the power supply situation overall will be significantly improved”, the statement concluded.
Source: https://energynewsafrica.com
EU Turns To Egypt In Rush To Replace Russian Gas
The European Commission has proposed a deal to accelerate natural gas imports from Egypt in a bid to reduce its reliance on Russian gas.
With Egypt ramping up efforts to become a major liquefied natural gas (LNG) player through increased exploration, production and infrastructure build up and modernization, the North African country is well positioned to expand energy exports to Europe while addressing African energy demand.
Egypt’s Emerging Gas Economy
Owing to its strategic location in close proximity to European markets as well as its success as a gas exporter, Egypt has emerged as an ideal supplier for Europe in the wake of the Russian-Ukraine conflict.
In 2021, Egypt exported approximately 8.9 billion cubic meters (bcm) of LNG, with 63% destined for Asian markets and 31% for Europe.
In 2022, this figure is expected to increase significantly following upstream developments including the Zohr, Atoll, Nooros and West Nile Delta discoveries as well as new commitments by Europe to invest in Egyptian gas projects.
With the Egyptian government set to introduce new licensing rounds in offshore frontier regions, new players are anticipated to enter the market while existing firms boost their own exploration initiatives.
Already, Italian energy major Eni has acquired two exploration blocks in the Meleiha concession following April 2022’s oil and gas discoveries in the Nada E Deep 1X well.
Meanwhile, firms including BP, APEX international, Energeen Egypt, INA-lndustrija Nafte d.d, Sipetrol, and United Energy are expected to pump new investments, drilling up to 33 new wells as part of the licenses awarded by the government in the 2021 International Bidding Round in first quarter of 2022.
These licensing round coupled with the government’s new exploration drive have positioned the country as a highly competitive market as well as top global exporter.
EU Turns To Egypt
As Egypt looks to increase exports, European nations are turning their attention to the north African country, recognizing the opportunity to replace Russian gas with Egypt’s.
This month, the European Commission proposed a deal between EU states and Egypt and Israel whereby the East Mediterranean states will increase gas exports to the bloc.
Expected to be signed at the end of June 2022 following government approvals, the deal will usher in a new era of trilateral trade while strengthening European energy security.
Meanwhile, European-based energy major Eni is focused on scaling-up exploration and production in Egypt in order to strengthen supply channels between the north African country and Europe. In April 2022, Eni signed a deal with Egyptian state energy firm, the Egyptian Natural Gas Holding Company, to increase exploration in the Nile Delta, Eastern Mediterranean and Western Desert regions, boost production and streamline export processes by restarting the development of the multi-billion Damietta liquefaction plant and gas export terminal in Damiette. The deal will not only improve E&P in Egypt but will position the country as a global energy exporter and Europe’s preferred supplier.
Furthermore, with the deal paving the way for Egypt to export up to three bcm of LNG to Europe via Italy as from 2022, gas monetization in the North African country will reach greater heights. Already, Egypt has witnessed a 98% increase in export revenues to $3.892 billion in the first four months of 2022 and a 768% increase between 2020 and 2021, according to the Ministry of Petroleum and Mineral Resources.
Africa Must Develop Gas Resources To Spur Industrialisation-Dr Ackah“Egypt’s gas may just be the solution Europe is looking for. An already strong gas market, a new exploration drive and close ties to European countries including Italy make the country an ideal partner as the bloc seeks alternative gas supplies in 2022 and beyond. The Chamber welcomes potential partnerships such as those between the EU and Egypt, and hopes to see other agreements established with other African gas producers. At African Energy Week in Cape Town, this very topic will form the base of many discussions, with new deals expected to be signed that will increase African gas trade,” states NJ Ayuk, the Executive Chairman of the AEC. The AEC’s annual event, African Energy Week (AEW), which takes place from 18 – 21 October 2022 in Cape Town under the theme, “Exploring and Investing in Africa’s Energy Future while Driving an Enabling Environment,” provides a perfect platform for more European-African energy deals to be discussed, negotiated and signed. AEW 2022 will host panel discussions, high-level meetings and various summits to discuss challenges and solutions for the African energy sector and investment opportunities across the continent’s entire oil and gas value chain. Source: https://energynewsafrica.com
Ghana, Lesotho Collaborate On Petroleum Downstream
Ghana’s petroleum downstream regulator, the National Petroleum Authority (NPA) and its counterpart in Lesotho, the Petroleum Fund, are collaborating to improve efficiency in the petroleum downstream in both countries.
In furtherance of the collaboration, a team from the Petroleum Fund, led by its Chief Executive Officer, Mr. Thato Mohasoa, paid a courtesy call on the Chief Executive of the NPA, Dr. Mustapha Abdul-Hamid, in Accra, the capital of Ghana.
The partnership between the two entities will, among other things, share experiences of mutual benefit in the petroleum downstream industry, especially in the management of the Unified Petroleum Price Fund (UPPF) which ensures that prices of petroleum products are the same across the country.
The team is in Ghana to also understudy Liquefied Petroleum Gas (LPG) regulation in Ghana.
Welcoming the delegation, the CEO of the NPA said he was elated to host his guests to study the downstream regulations of LPG.
“It is important that Africans go to each other for solutions to Africa’s problems rather than travelling abroad to seek solutions which are not feasible,” Dr. Abdul-Hamid added.
On his part, the Petroleum Fund CEO of Lesotho, Thato Mohasoa, said he was happy about the warm welcome and that the team was in anticipation to learn about the successes of the NPA’s Unified Petroleum Price Fund and “the groundbreaking role of the downstream sector of Ghana has achieved in regulating LPG.”
The four-member team from Lesotho also included Mohloko Lepamo; Finance Manager of PF, Lebohang Makhoali; Operations Manager of PF and Thato Kolisang; Corporate Affairs Manager.
The team also visited the Ghana National Gas Company and the Tema Oil Refinery as part of their working visit.
Source: https://energynewsafrica.com
The team is in Ghana to also understudy Liquefied Petroleum Gas (LPG) regulation in Ghana.
Welcoming the delegation, the CEO of the NPA said he was elated to host his guests to study the downstream regulations of LPG.
“It is important that Africans go to each other for solutions to Africa’s problems rather than travelling abroad to seek solutions which are not feasible,” Dr. Abdul-Hamid added.
On his part, the Petroleum Fund CEO of Lesotho, Thato Mohasoa, said he was happy about the warm welcome and that the team was in anticipation to learn about the successes of the NPA’s Unified Petroleum Price Fund and “the groundbreaking role of the downstream sector of Ghana has achieved in regulating LPG.”
The four-member team from Lesotho also included Mohloko Lepamo; Finance Manager of PF, Lebohang Makhoali; Operations Manager of PF and Thato Kolisang; Corporate Affairs Manager.
The team also visited the Ghana National Gas Company and the Tema Oil Refinery as part of their working visit.
Source: https://energynewsafrica.com Ghana Has Best Quality Fuel In West Africa-NPA
Ghana’s petroleum downstream regulator, NPA, has asked fuel consumers not to worry about the fuel they buy from retail outlets because the country has the best quality fuel in West Africa.
Head of Quality Assurance at the National Petroleum Authority (NPA), Saeed Ubeidalah, said: “So far as the fuel station is operating and has not been shut down, you should be assured of high-quality product for your vehicle or machine,” adding that, “Ghana is the only country in West Africa that sells petroleum products at 50 parts per million (ppm) since 2017.”
Addressing journalists at a capacity-building workshop in Kumasi, Ashanti Region, on petroleum pricing formula, post-deregulation and fuel quality on Friday, he said some consumers are sensitive to pricing while others are to the brand.
However, according to the Quality Assurance Head, “Ghanaians are made to believe the cheaper the price, the lesser quality or if you want a good product, go to the big fuel stations. If you want to compromise the integrity of your engine, go to the other stations.
“I’ve always said that not until NPA closes a fuel station, the presumption is that the station has been monitored, the quality of the product has been guaranteed and it is certified to be sold to the public” he added.
Mr Saeed explained that the Authority has developed an electronic tracking device that monitored the movement of petroleum products from depots to locations to ensure that petrol and diesel are not diluted or adulterated.
He said high-quality petrol and diesel remained the hallmark of the Authority at all the 4,000 retail outlets across the country, saying, “We are always monitoring to ensure that the various retail outlets meet specifications and standards.”
That notwithstanding, he admitted there were a few bad nuts who were not playing by the rules of NPA and advised consumers of petroleum products to report suspected contamination of the commodity to the Authority for investigation.
He asked consumers to consider their shared responsibilities in helping the Authority fight fuel contamination by making use of the complaints platform to get their grievances across.
“We recommend that such cases are reported to the NPA within 48 hours for prompt investigation by contacting any of our regional offices across the country,” he said.
“We’ve had instances, where offenders have been charged to replace car engines of consumers and also compensate for other damages caused the vehicle” he emphasised.
Source: https://energynewsafrica.com
Germany To Fire Up Coal Plants As Russia Turns Down Gas
The German Economy Minister says Germany must curb its gas use as Russia reduces its supply, warning that things “could get tight in winter.’
“Germany must limit its use of gas for electricity production and prioritise the filling of storage facilities to compensate for a drop in supply from Russia,” Economy Minister Robert Habeck said on Sunday.
In a move that goes against the principles of his environmentally-friendly Green Party, the country will also have to increase the burning of coal, Habeck said.
Russian gas company, Gazprom, announced last week that it was reducing supplies through the Nord Stream 1 pipeline for technical reasons, saying there had been delays in the repair of compressor turbines by the German company Siemens Energy.
Germany has come under intense criticism in the past, particularly from the US, for its reliance on cheap Russian energy sources, which Washington has always seen as a security risk for Europe.
“To reduce gas consumption, less gas must be used to generate electricity. Coal-fired power plants will have to be used more instead,” the Economy Ministry said in a statement carried by dw.com.
Habeck also said that more gas had to be pumped into storage facilities.
“Otherwise, it will be tight in winter,” he warned.
Currently, gas storage facilities in Germany are around 57 per cent full.
Habeck lamented the necessity to use coal more to produce electricity but described the current situation as serious.
“That’s bitter, but it’s simply necessary for this situation to lower gas usage,” he said.
Habeck had also proposed putting a cap on domestic heating.
The government also wants to set up a gas auction model this summer to incentivise the saving of gas by industry.
Under the scheme, industrial customers who can do without gas will reduce their consumption in exchange for financial compensation.
The gas saved will then be put into storage.
The government is also planning an additional credit line of €15 billion ($15.7 billion) via the state bank KfW to enable the German gas market area manager Trading Hub Europe (THE) to buy gas to fill the storage facilities.
The third party in the government coalition, the business-friendly Free Democrats (FDP), has also called for Germany to reconsider its 2017 ban on unconventional fracking amid the supply problems.
Fracking is a process of extracting oil and gas from shale rock using chemicals and pressure that is considered by many environmentalists as extremely damaging to nature.
But the FDP’s Parliamentary Director, Torsten Herbst, told the Welt Am Sonntag newspaper that such objections were no longer relevant.
“As scientific studies show, under modern security standards, fracking causes no relevant environmental damage,” he said.
Referring to the fact that Germany intends to import fracking gas from the US, he said that those in favour of the move could not oppose the promotion of safe fracking in Germany itself.
Source: https://energynewsafrica.com
Nigeria: Petrol Subsidy Is Crippling Our Economy- Zainab Ahmed
Nigeria’s economy is being hurt by petrol subsidy and making it difficult for the Federal Government to service debt, Minister for Finance, Budget and National Planning, Zainab Ahmed has said.
The World Bank, in its Nigeria’s Development Update (NDU), launched last Tuesday, projected that fuel subsidy would gulp N5 trillion (US$12,025,000,000 ) in 2022—more than Nigeria’s N4 trillion subsidy budget.
“Already, we have borrowing increasing significantly and we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate so it is a very difficult situation.
“So Nigerians need to understand that this PMS subsidy we are carrying now is hurting the nation, it’s impeding the government’s ability to be able to invest in human capital development.
“With oil prices going up significantly, and with it, the price of imported gasoline, we now estimate that the foregone revenues as a result of gasoline subsidies will be closer to 5 trillion Naira in 2022,” quoted thewhistler.ng from the report.
This year alone, NNPC has spent N947.53 billion (US$2,278,809,650) on petrol subsidy payments.
Speaking at the hybrid launch of the World Bank’s report, the Finance Minister urged Nigerians to understand that petrol subsidy is causing a massive fiscal burden, thus impeding the country’s economic growth.
She said important investments in the oil and gas sector are being delayed because of the heavy fiscal burden of fuel subsidies.
“This premium motor spirit (PMS) subsidy is costing us an additional N4 trillion than was originally planned. So, this is an unplanned deficit,” Ahmed said.
“We have gone to the National Assembly; we have gotten approvals, but the approval was simply for us to cut down on some of the investment costs.
“So, investments that we needed to make in oil and gas sector which are delaying and deferring to a later time and reducing the rollout of those investments. But we also had asked that we needed to borrow more which is very serious.”
According to her, the N4 trillion earmarked for payment of fuel subsidy this year could have been invested in the health or education sector.
“But we are investing it (N4 trillion) in consumption, which is very wasteful. How many Nigerians own cars that are benefiting from this subsidy?” she asked.
She said Nigeria was facing many challenges on multiple fronts as the country is unable to gain from the current oil price rally.
“We are at some kind of crossroads. It is not hearsay to say that Nigeria has not derived what it should from the current high crude oil prices, rather rising crude oil prices are posing significant fiscal challenges to our economy and may lead to some negative receipts and indeed we have started seeing already those negative receipts,” Ahmed added.
“Three factors are preventing Nigeria from fully benefiting from the current boom in the international crisis.
“First of all, our prediction had fallen below Nigeria’s estimated capacity and the OPEC quota because of insecurity, vandalism and theft.
“Secondly, the domestic price of payments has remained fixed, while global PMS prices have continued to rise.
“The third is that rising international crude prices also increase the burden of PMS because we buy refined petroleum products.
“The higher crude oil price goes in the global market, the more we’re paying for PMS, and by maintaining this PMS subsidy we as a country, unfortunately, forego investments that will have used the monies into essential infrastructure, goods or services that would have increased the overall productivity of the nation. So this is the bane of the major issue that we’re facing now.”
Source: https://energynewsafrica.com
Fuel Hikes: Ghanaians Lament As Diesel Price Nears Gh¢14 Per Litre, Petrol Gh¢11Per Litre
Ghanaians have been lamenting over the rising cost of petrol and diesel in the West African nation, and are calling on President Akufo-Addo to subsidise the commodity to save them from hardship.
Fuel prices have been soaring and pushing prices of goods and services higher in the country.
As of Friday, most oil marketing companies adjusted their pump prices upward, sparking debate on social media.
Leading oil marketing companies, GOIL and Total, adjusted their diesel prices from Gh¢12.20 per litre to Gh¢13.39 per and from Gh¢12.40 to Gh¢13.50 respectively.
The OMCs also adjusted the petrol price to Gh¢10.99(US$1.36 ) per litre from Gh¢ 10.10 per litre.
Star Oil adjusted its diesel price to Gh¢13.58(US$1.68) per litre from Gh¢12.58 (US$1.57) per litre while petrol price was adjusted to Gh¢10.48 per litre.
On its part, Allied Oil adjusted its diesel price to Gh¢13.47 per litre from Gh¢12.50 (US$12.50) per litre with petrol going up to Gh¢10.99, while Lucky Oil adjusted its diesel price to Gh¢13.10 per litre and petrol to Gh¢10.70 per litre.
Unlike in the past when political actors would be seen defending their party in government, the trend has changed with some members of the governing party expressing their frustrations about the rising cost of fuel.
Energynewsafrica.com has been monitoring comments on social media, following the hikes in fuel prices and here are some of the comments:
One Sarfo Kantanka wrote: “I’m begging the government to subsidise fuel small…cost of living plus the complaints are becoming too much for us. ‘Adware k3se3’ can’t win elections in 2024 should things continue like this. I’m even preparing to enter the village for farming.”
Speaker Ntow Fianko also wrote on Facebook: “The economy in chargers, any solution? Or we should endure till when? Don’t tell me it’s so in the US and London. What’s their minimum wage? Please, slash the taxes off if you feel the pain of Ghanaians because difficult times require heavy decisions. Leaders are there to pave the way in the wilderness. It’s getting out of hand if not out of hands already. Don’t also tell me we need the taxes for development cos we used these same taxes to collapse businesses so why can’t we use these same taxes to offset some huge loads from Ghanaians.”
Source: https://energynewsafrica.com
Energynewsafrica.com has been monitoring comments on social media, following the hikes in fuel prices and here are some of the comments:
One Sarfo Kantanka wrote: “I’m begging the government to subsidise fuel small…cost of living plus the complaints are becoming too much for us. ‘Adware k3se3’ can’t win elections in 2024 should things continue like this. I’m even preparing to enter the village for farming.”
Speaker Ntow Fianko also wrote on Facebook: “The economy in chargers, any solution? Or we should endure till when? Don’t tell me it’s so in the US and London. What’s their minimum wage? Please, slash the taxes off if you feel the pain of Ghanaians because difficult times require heavy decisions. Leaders are there to pave the way in the wilderness. It’s getting out of hand if not out of hands already. Don’t also tell me we need the taxes for development cos we used these same taxes to collapse businesses so why can’t we use these same taxes to offset some huge loads from Ghanaians.”
Source: https://energynewsafrica.com Nigeria: Buhari Approves TCN Unbundling
Nigeria’s President H.E Muhammadu Buhari has approved and given his support for the unbundling of the Transmission Company of Nigeria (TCN).
The West African nation’s Minister for Power, Aliyu Abubakar, revealed this when he responded to a question about calls for the unbundling of TCN at the NexTier Power Dialogue in Abuja on Tuesday night.
After the power sector was privatised in 2013 and the successor generation and distribution companies handed over to private investors, the TCN was left under the ownership and management of the Federal Government.
The TCN has remained so since then, although operating under some strategic departments, among which include two key components known as the Transmission Service Provider and the System Operator.
Industry experts and operators in other arms of the power value chain had often called for the unbundling of the transmission company into its two key entities, as the calls became loud, following the incessant collapse of the national power grid under the management of TCN.
The Power Minister stated that the process had reached an advanced stage.
Mr Abubakar also told participants at the dialogue that Buhari was supporting the unbundling of the transmission company, adding that recommendations would be made by the office of the Power Minister soon.
He said, “We are working on that and we have gone very far. As I speak with you now, I have some documents which were brought to me in that regard this afternoon. I’ve not gone through them because I had to prepare for this meeting.
“But as soon as I leave here, I will look at them. Very soon, we will separate the two certificates to unbundle the TCN into two entities. And as we go along we will further unbundle to probably make them three.
“But for this one, we have gone very far with it and I don’t want to preempt what was brought to me in terms of recommendation. However, very soon we will do that. We have got the support of Mr President to that effect.”
Source: https://energynewsafrica.com
Ghana: President Akufo-Addo Must Save TOR From Collapsing-IES
The Institute for Energy Security (IES), an energy think tank in the Republic of Ghana, is urging President Akufo-Addo to take urgent steps to rescue Tema Oil Refinery (TOR) from total collapse.
According to the think tank, poor management of the refinery in almost the six years of the Akufo-Addo administration is one of the reasons why Ghanaians are paying more for fuel.
IES noted that TOR is sitting idle and rusting away despite the opportunities that the Russian-Ukraine war presents for the country’s petroleum value chain.
“After close to six years of poor management of this vital state institution, the refinery sits idle and hopeless; losing out on the prospects of the Russian-Ukraine conflict, plus the potential of generating that synergy between the upstream and the downstream sectors of the Ghanaian petroleum industry.
“Over the period, successive management and boards of the refinery have failed to provide that vital leadership required to maintain and grow the refinery; particularly so, when the present government in January 2017 inherited a refinery that had cracked approximately 7 million barrels of crude between mid-2015 and end 2016,” IES said in a statement issued by Fritz Moses.
The IES also took on the country’s Energy Minister, Dr. Matthew Opoku Prempeh, for being clueless and failing to provide a single strategic option to lift TOR out of its present condition while clamouring for another refinery.
“It is reported that the Minister is uncooperative with TOR’s Management and Board decisions and strategic directions, a situation which would generate another round of leadership failure at the State refinery,” the IES said.
Full Statement
THE PRESIDENT MUST INTERVENE TO SAVE THE TEMA OIL REFINERY (TOR) FROM DEAD COLLAPSE
While the price of a gallon of Diesel draws closer to Gh¢60, the Institute for Energy Security (IES) wishes to put the President H.E. Nana Addo Dankwa Akufu-Addo on notice that “the Tema Oil Refinery (TOR) is still in coma, requiring his urgent intervention to save the State facility which is saddled with over Gh¢400 million debt, from total collapse.”
After close to 6 years of poor management of this vital State institution, the refinery sits idle and hopeless; losing out on the prospects of the Russian-Ukraine conflict, plus the potential of generating that synergy between the upstream and the downstream sectors of the Ghanaian petroleum industry.
Although the global economic crisis caused by the pandemic, and the Russian-Ukraine war somehow presents an opportunity for the country’s petroleum sector to exploit opportunities in the petroleum value chain, TOR sits idle, rusting away.
Over the period, successive managements and Boards of the refinery have literally failed to provide that vital leadership required to maintain and grow the refinery; particularly so, when the present government in January 2017 inherited a refinery that had cracked approximately 7 million barrels of crude between mid-2015 and end 2016.
A combination of bad sales and purchase agreements, poor facility maintenance, capacity under-utilization, operational inefficiencies, under-investment, carelessness, and incoherent policies, have diminished any hope that the refinery could run uninterrupted and even profitably.
At a time this nation needs it most, the refinery has ceased to play any meaningful role in managing fuel price and supply risks, while pockets of fuel shortages are recorded with the price of fuel almost quadrupling in the past 6 and half years, stoking inflationary pressures on the entire economy, as Ghanaians will attest.
Unfortunately, the Energy Minister Dr. Matthew Opoku Prempeh sits clueless, failing to provide a single strategic option to lift TOR out of its present condition while clamoring towards another refinery. Instead, it is reported that the Minister is uncooperative with TOR’s Management and Board decisions and strategic directions, a situation which would definitely generate another round of leadership failure at the State refinery.
After a year and half in office, the Energy Minister has failed to provide that leadership necessary for the restoration of TOR. Put bluntly, the Minister has failed to find for TOR a strategic partner and direction to overturn the crippling state of the refinery.
As a result of all the above, and by virtue of TOR’s strategic place in the Ghanaian economy, the IES wishes to call on the President to as a matter of urgency intervene and restore the facility to a sustainable operational path, before it collapses dead in only a matter of months.
Finally, we do not want to hold the belief that the President, H.E. Nana Akufo-Addo, is not interested in the functionality of TOR and the ongoing fuel price hikes hurting Ghanaians at the pump.
IES, therefore, wishes to call on the President to ensure the refinery’s Management and Board develop a comprehensive business strategy that ensures that TOR is operationally and financially viable, as developments on the international fuel market will continue to have a direct effect on the Ghanaian fuel market.
Signed:
Fritz Moses
Research Analyst, IES
([email protected])
Source: https://energynewsafrica.com