South Africa has announced a reduction in petrol and diesel prices for April, bringing relief to motorists.
The price drop is driven by lower global oil prices and a stronger rand.
A statement issued by the Department of Mineral and Petroleum Resources confirmed 53 cents and 72 cents reduction for 93 and 95 octane petrol respectively.
Diesel price has also seen a decrease of 83 and 85 cents per litre, depending on the grade. Paraffin at the retail level has decreased by R1.14 per litre.
Fuel Pricing Manager at the Department of Mineral and Petroleum Resources Robert Maake says, “The reason for these decreases is the lower oil prices and stronger rand against the dollar during the period under review.
The minister has approved the annual adjustment to the transport tariffs and will range from zero cents per litre in zone 1a to 7.5 cents a litre in zone 14c, which is in Mokopane and Limpopo.
This means that the fuel price changes will be different in the 54 magisterial district zones.”
Source:https://energynewsafrica.com
The former Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, Esq., has expressed optimism that the 1,347 containers reported missing from ECG’s inventory are still at the Tema Port.
“Honestly, I strongly believe the containers are at the port,” Mahama stated confidently in an interview with Accra-based TV3.
His comments come in response to a report by a technical committee set up by the Minister of Energy and Green Transition to investigate procurement activities which revealed that over 1,300 containers with critical electrical equipment belonging to ECG had disappeared from the Tema Port.
The purported missing containers had raised concerns about possible mismanagement, corruption, or smuggling within ECG’s supply chain.
However, Mahama dismissed suggestions that ECG itself lost the containers, asserting that they were never in the company’s custody.
“This conversation would be different if we were saying that the containers were in the custody of ECG and got lost. But that is not the conversation. The conversation is that those containers are at the port, … have we visited the other terminals?” he asked.
He further questioned why ECG’s containers would be auctioned without the company’s knowledge, stating that unpaid duties should not lead to secretive disposal.
“ECG hasn’t paid its duties. So why auction a container belonging to ECG without notifying ECG? Because in my candid opinion, that’s the only way a container can leave the port,” he asserted.
Mahama also challenged the notion that a container could simply vanish.
“A container is not like a piece of paper that you fold and throw away. For international supply chain logistics, a container has a unique number,” he explained.
Source: https://energynewsafrica.com
The Volta River Authority (VRA), Ghana’s largest state-owned power generation company, held its annual employee volunteer program at Chemu Senior High Technical School in Tema Community 4.
This flagship program allows VRA staff to dedicate two working days to providing career guidance, counseling, and voluntary teaching at select senior high schools within VRA’s operational area.
Over 300 students attended this year’s event, which featured a Career Guidance ICT Boot Camp led by Prince Albert Tawiah, VRA’s Principal System Administrator.
Addressing the students, Mr. Samuel Fletcher, Acting Deputy Chief Executive in charge of Services at the Volta River Authority (VRA), advised them to discipline themselves and work towards developing their future careers.
Mr Fletcher reminded them they were in school to learn; therefore, “if it’s not about learning, then you have no business being in school.”
Mr. Fletcher stated that the programme was one of their corporate social responsibilities, adding that they believe that the students would have a better opportunity and make informed decisions about their future careers when they were engaged before completing school.
“We feel that opening these up and bringing them such education to complement what the teachers do will give the best opportunity to the children to make informed decisions going into the future,” he added.
He further said even though having 30 staff of the VRA out on the field to interact with the students was a lot of money, the authority believes in education, health, community interest activities, and the environment and was ready to therefore invest in them.
He further noted that providing such counselling would also help the students to be focused and get the chance to benefit from scholarships for tertiary students and become professionals to benefit the country.
He disclosed that since 2017, when the Employee Voluntary Programme commenced under its Community Development Programme, students from 26 schools across its operational regions have benefitted.
Mrs. Vincentia Kyere Anin-Agyei, headmistress of Chemu Senior High Technical School, commended the VRA for the initiative, noting that it would help in the students’ study as the new curriculum questions are mostly application-based.
Mrs. Anin-Agyei said, “It is important to give the students this kind of opportunity for them to learn outside the books; they should also have other engagements to broaden their knowledge.”
She appealed to the VRA and other institutions to help the school to acquire more computers to help the students have enough for practicals.
Source: https://energynewsafrica.com
Vivo Energy Ghana, the company responsible for marketing and distributing Shell-branded fuels and lubricants, has announced the appointment of Christian Li as its new Managing Director following the passing of former MD, Jean-Michel Arlandis.
Christian Li, a Mauritian national, brings nearly 30 years of experience in general management, business development, and sales and marketing across more than 20 African countries.
Prior to his appointment, he served as Head of International Business for Engen, overseeing operations in Namibia, Botswana, DRC, Mauritius, Lesotho, and Eswatini.
His leadership journey includes a four-year tenure as Managing Director of Engen Namibia, where he was recognized among the top 10 executives for three consecutive years.
Before that, he held senior roles in South Africa, Mauritius, and the Republic of Congo, including an eight-year stint with Chevron before joining Engen Mauritius in 2011.
Announcing his appointment, Franck Konan-Yahaut, Vivo Energy’s Executive Vice President for West and Central Africa, expressed confidence in Christian’s leadership:
“Christian brings a wealth of knowledge, a commitment to excellence, and a drive for continuous improvement. He will be an invaluable addition to our team.”
In response, Christian expressed gratitude for the opportunity and pledged to collaborate with industry players and stakeholders to foster innovation and excellence in Ghana’s downstream petroleum sector.
“Having worked in various capacities across multiple sectors, I am optimistic that we will elevate an already robust business to even greater heights,” he stated.
Source:https://energynewsafrica.com
A bipartisan group of 50 U.S. Senators has prepared a plan to slap a 500% tariff on imported goods from countries that buy Russian oil, gas, and uranium if Russia refuses to engage in good-faith negotiations for a lasting peace with Ukraine.
Senators Richard Blumenthal (D-Connecticut) and Lindsey Graham (R-South Carolina) led 50 of their colleagues – evenly divided by party affiliation – to propose “primary and secondary sanctions against Russia and actors supporting Russia’s aggression in Ukraine,” the statement from the Senators said.
“These sanctions would be imposed if Russia refuses to engage in good faith negotiations for a lasting peace with Ukraine or initiates another effort, including military invasion, that undermines the sovereignty of Ukraine after peace is negotiated.”
The hard-hitting sanctions on Russia “are at the ready and will receive overwhelming bipartisan, bicameral support if presented to the Senate and House for a vote,” the Senators said.
Congressional action could give U.S. President Donald Trump more munition to demand Russia’s good-faith engagement in talks about a lasting peace in Ukraine.
Last weekend, President Trump voiced frustration with Vladimir Putin, saying he was “pissed off” with the Russian President.
“If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia’s fault — which it might not be — but if I think it was Russia’s fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia,” Trump told NBC in an interview on Sunday.
In the statement announcing the proposed new sanctions on Russia, the U.S. Senators said “We share President Trump’s frustration with Russia when it comes to obtaining a ceasefire, and support President Trump’s desire to achieve a lasting, just and honorable peace.”
Russia signaled on Tuesday that it cannot accept the U.S. plan to end the war in Ukraine in the “current form.”
Source: Oilprice.com
Ghana’s Minister for Energy and Green Transition, Hon. John Abdulai Jinapor, is pushing for a forensic investigation into the disappearance of over 1,300 containers of critical electrical equipment belonging to Electricity Company of Ghana (ECG) from the Tema Port.
The disappearance of the containers has sparked widespread public outrage and concerns about possible corruption and misconduct.
According to reports, the containers were diverted through various means, with some allegedly cleared from the port but never delivered, while others ended up in private factories or were auctioned at suspiciously low prices.
The controversy gained attention after an investigative report revealed irregularities in ECG’s procurement process.
Minister Jinapor welcomed the public’s interest in the matter, emphasizing the need for accountability.
His ministry has begun tracking the missing containers using their unique identification numbers and ports of receipt.
Minister Jinapor revealed on Accra-based GhOne TV over the weekend that he has received multiple leads on the possible locations of the missing containers, and he has assured Ghanaians that immediate action will be taken.
To ensure transparency and accountability, Jinapor stressed the need for a specialized forensic committee to conduct a thorough investigation.
This committee will retrace the movement of the containers, expose those responsible, and determine which ports the containers were received from.
Source: https://energynewsafrica.com
Several people have been hospitalized in Malaysia on Tuesday after a huge fire broke out at a gas pipeline operated by state energy giant Petronas.
A report by Reuters quoting Malaysian authorities said the blaze which happened in the town of Puchong on the outskirts of the capital Kuala Lumpur had been extinguished by mid-afternoon.
The report said at least 305 people were affected, including those left homeless after some 190 homes were damaged.
No deaths were reported and the health minister said those admitted to hospital were all in a stable condition.
State news agency Bernama said 145 people had received hospital treatment and 41 had since been discharged, citing health ministry data.
They were treated for burns, other injuries and respiratory problems, state authorities said.
The fire started early on Tuesday with a towering orange flame and billowing smoke that could be seen on the horizon from far away, according to early images on news outlets and footage shared on social media.
Witnesses in evacuation centres described scenes of chaos that started with an explosion.
“The fire is really raging high. And then once you can see debris – you’re talking about debris which is still on fire – started to fall all over the place, that’s (when) we know something bad has happened,” said Raja Hilmy Bin Raja Idris, 59, whose house was 1 km (0.6 miles) from the fire.
Evian Wee, 50, said she initially thought a tornado or earthquake had struck.
“I saw a red glow moving around … I kept hearing things falling – glass, stones, all crashing in. All the windows were shattered,” she said.
“It started off with the explosion, then the windows started shaking violently.
That’s when we realised it was an explosion that led to the fire.”
Petronas said earlier it had isolated the pipeline and was working closely with all relevant parties to ensure the safety of the surrounding community, environment and security of gas supply to the country.
Malaysia’s Prime Minister Anwar Ibrahim said the state government and Petronas would take full responsibility for restoring the area, adding that the process could take a year.
“It will take some time to determine the cause. Let there be a thorough investigation. Our priority now is safety. It looks under control so far,” he said, adding that those affected would be given financial assistance in the interim.
Source:htttps://energynewsafrica.com
Nigeria’s President Bola Ahmed Tinubu has sacked Mele Kolo Kyari as the group chief executive officer (CEO) of the Nigerian National Petroleum Company (NNPC) Limited and dissolved its board, marking an end to his almost six years in the helm of NNPCL.
The decision, effective today April 2, 2025, was announced in a statement signed by Bayo Onanuga, special adviser to the president on information and strategy, on the morning of Wednesday, April 2, 2025.
Citing the need for “enhanced operational efficiency, restored investor confidence, and a more commercially viable NNPC”, Tinubu invoked his powers under section 59(2) of the Petroleum Industry Act (PIA) 2021 to carry out the sweeping reconstitution.
To see to the smooth running of the national oil company, the President has appointed Bayo Ojulari as the new group CEO, while Ahmadu Musa Kida has been appointed as NNPC’s new non-executive chairman, replacing Pius Akinyelure.
Also, Adedapo Segun has been confirmed as the company’s chief financial officer (CFO).
In line with the PIA, the president also appointed six non-executive directors from each geopolitical zone.
They include Bello Rabiu representing the north-west, Yusuf Usman from the north-east, and Babs Omotowa, a former managing director of the Nigerian Liquefied Natural Gas (NLNG), for the north-central.
Others are Austin Avuru for the south-south, David Ige for the south-west, and Henry Obih for the south-east.
Meanwhile, Lydia Shehu Jafiya, the permanent secretary of the federal ministry of finance, and Aminu Said Ahmed of the ministry of petroleum resources will represent their respective ministries on the new board.
“This restructuring is aimed at repositioning NNPC Limited for greater productivity and efficiency in line with global best practices. We are taking bold steps to transform the company into a more commercially driven and transparent entity,” the statement reads.
The changes take effect immediately, and the new board has been handed a strategic action plan, which includes a “review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives”.
Tinubu, who has prioritised investment-driven reforms in the oil sector, highlighted that since 2023, his administration had attracted $17 billion in new investments and is now targeting $30 billion by 2027 and $60 billion by 2030.
Also, the government aims to raise crude oil production to 2 million barrels daily by 2027 and 3 million by 2030, alongside a gas production goal of 8 billion cubic feet daily by 2027 and 10 billion cubic feet by 2030.
“Furthermore, President Tinubu expects the new board to elevate NNPC’s share of crude oil refining output to 200,000 barrels by 2027 and reach 500,000 by 2030,” the statement added.
The administration has prioritised domestic refining capacity to reduce reliance on fuel imports and strengthen Nigeria’s energy security.
Source:https://energynewsafrica.com
Lesotho Electricity Company (LEC) is facing a severe financial crisis, with its current liabilities exceeding its assets by M98.6 million, according to an external audit report.
The report revealed that LEC’s cash reserves had plummeted by M145.8 million, posing a severe threat to the nation’s power supply project.
Currently, LEC relies on electricity imports from South Africa’s Eskom and Mozambique’s EDM, following the shutdown of the ‘Muela Hydropower Station, which normally supplies 72 megawatts of electricity to the LEC.
The station has been undergoing maintenance since 1 October 2024 and is expected to remain offline until the end of this month.
Speaking to the media, Acting Minister of Energy, Mohlomi Moleko, said LEC’s financial difficulties stemmed from alleged gross financial mismanagement, governance failures, and low energy tariffs.
He disclosed that LEC was now reliant on government bailouts, with the government recently injecting M300 million to enable the company to continue purchasing electricity.
“External audit reports contain credible evidence exposing severe governance failures, fraudulent financial practices, and operational inefficiencies that have placed both the company and the national power supply at risk,” Mr. Moleko stated.
He further noted that LEC consistently failed to produce correct and balanced financial statements when audited by the Auditor General.
The external audit report highlighted LEC’s failure to comply with International Financial Reporting Standards (IFRS), leading auditors to issue a disclaimer opinion due to unverified financial accounts.
It also revealed that LEC had failed to adhere to company policies and corporate governance frameworks, including the King IV Code on Corporate Governance.
The report further flagged LEC’s reliance on manual financial journal entries without supporting documentation, creating a high risk of fraudulent transactions.
Mr Moleko pointed out that LEC’s financial woes were exacerbated by its practice of buying electricity from Eskom and EDM at high prices while selling it to consumers at lower prices, leading to significant losses.
He said the LEC had been struggling financially for over a decade and called for an urgent revision of electricity tariffs to make them cost-effective.
To address these challenges, Mr Moleko said the Ministry of Energy was reviewing the Energy Bill, soon to be presented to Parliament.
The Bill will propose tariff increases to make them sustainable and address conditions for electricity subsidies, ensuring that only vulnerable groups receive assistance.
He said the LEC’s financial difficulties had reached a critical point where the company could no longer afford to purchase electricity, let alone cover operational expenses.
“The root cause remains the high cost of electricity from Eskom and EDM, which is sold to consumers at a loss. There is an urgent need to revise energy tariffs to align more closely with those in South Africa,” he said.
Additionally, he accused LEC of inefficiencies in service delivery, poor responses to technical faults, and failure to maintain critical infrastructure, increasing the risk of system failure and network collapse.
Mr Moleko also addressed allegations of unfair labour practices within LEC, including wrongful dismissals, prolonged disciplinary hearings, and favouritism in hiring.
He claimed that the company had been “captured” by politicians and assured that the government was working tirelessly to restore proper management.
He said the LEC Board had suspended the entire LEC executive for three months to pave way for investigations.
Those suspended are LEC Managing Director Mohlomi Seitlheko, Corporate Secretary Attorney Khotso Nthontho, Head of Corporate Services Moipone Mashale, Head of Strategy and Growth Limpho Mokhesi, Head of Information Technology Sakhele Mapetja, Head of Finance ‘Makabelo Matsoso, Head of Customer Experience Lebohang Mohasoa, Head of Legal, Risk and Compliance Selebalo Ntepe, Head of Internal Audit Thato Matsoso and Head of Operations Serolo Tikoe.
LEC Board Chairperson, Ntsie Maphathe, who is acting as the MD, also told the media that actions would be taken against individuals found guilty of fraud and financial mismanagement.
He indicated that penalties would vary depending on the severity of each case, with the legal department advising on appropriate measures.
However, the LEC was unable to disclose how much electricity it was currently purchasing from Eskom and EDM, the associated costs, or the selling price to consumers to support its claims of financial losses and the need for tariff hikes.
Source: https://energynewsafrica.com
Vivo Energy Uganda, the company behind Shell fuels and lubricants, has embarked on a nationwide initiative to introduce Shell Gas as a clean and efficient cooking solution for schools.
The project kicked off at King’s College Budo, aligning with the government’s efforts to phase out traditional fuels like firewood and charcoal, which pose environmental and health concerns.
According to Joanita Menya, Managing Director of Energy at Vivo Energy, the project delivers a safe, efficient, and cost-effective solution for cooking in mass environments like schools.
The initiative includes installing a 1,000 kg LPG tank, piping, and providing technical training to school staff.
“We’ve delivered a safe, efficient, and clean solution for cooking in schools,” Menya said.
“Chefs no longer have to spend nights cooking; they can now prepare meals in the morning like anyone else. Beyond saving time, we’re preventing respiratory illnesses caused by smoke inhalation.”
Vivo Energy has also committed to maintaining the facility, ensuring long-term safety and efficiency.
The shift to Shell Gas has significantly reduced cooking times at King’s College Budo, with chefs reporting a 50% reduction in preparation time.
The school’s reliance on large quantities of firewood has been replaced with a one-ton LPG tank, resulting in substantial cost savings and a reduced environmental footprint.
Vivo Energy aims to expand this initiative to all schools, with a goal to increase LPG penetration to 4 kg per capita.
For schools unable to afford upfront costs, Vivo Energy offers free installations, charging only for gas refills.
The company assures that Shell Gas cylinders meet international safety standards, undergoing rigorous testing.
King’s College Budo’s success serves as a blueprint for other institutions, with benefits ranging from cost savings to environmental protection.
“This is just the beginning. Every school and household deserve clean, safe, and efficient energy,” Menya declared.
Source: https://energynewsafrica.com
The Acting Chief Executive Officer of Ghana National Gas Company, Judith Adjobah Blay has embarked on a three-day working visit to the Western Region.
The visit aimed to engage key stakeholders and assess the company’s operational sites.
Ms. Blay and her team began by paying a courtesy call on the Western Regional House of Chiefs, where she introduced herself and reaffirmed Ghana Gas’ commitment to the region’s development.
They also met with the Nzema Traditional Council and the Western Regional Minister, Hon. Joseph Nelson, to discuss areas of mutual interest.
The delegation toured Ghana Gas’ key operational sites, including the Gas Processing Plant, Takoradi Distribution Station,Anokyi Mainline Compressor Station, Sekondi Regulatory and Metering Station, and Trauma Center.
This visit provided an opportunity for the team to assess operations firsthand and engage with site personnel.
The three-day tour concluded with a staff durbar, where Ms. Blay praised the employees for their dedication to managing the plant. She encouraged them to maintain their efforts and expressed her commitment to guiding the company toward greater achievements.
Accompanying Ms. Blay were Ing. Dr. Robert Kofi Lartey, Deputy CEO; Mr. Richard Kirk Mensah, Head of Corporate Communications; and Miss Angela Carson, Acting General Manager, HR & IC.
Source:https://energynewsfrica.com
Umeme Limited, the main power distributor in the Republic of Uganda, has officially handed over electricity distribution infrastructure to the government following the expiration of a 20 year-old concession on, March 31, 2025.
Earlier this month, Ugandan Parliament approved $190 million loan for the government to payout Umeme Limited to enable it recover its investment for the past 20 years, and this portal understands the company received $118 million payout last Friday.
The handing over ceremony which was held at the Umeme Lugogo office in the Industrial Area, Kampala, was attended by host dignitaries including the Minister for Energy and Mineral Development, Hon. Ruth Nankabirwa Ssentamu, Umeme Managing Director, Selestino Babungi, and officials from the Uganda Electricity Transmission Company (UETCL).
Henceforth, electricity distribution in Uganda will be undertaken by the state-owned Uganda Electricity Distribution Company Limited (UEDCL) that initially managed electricity distribution before the Umeme concession began.
Taking to social media platform X, Energy and Mineral Development Minister Ruth Nankabirwa wrote: “Today, I presided over the handover of @UmemeLtd Umeme Limited’s electricity distribution assets to Uganda Electricity Distribution Company Limited (UEDCL). This marks the end of Umeme’s 20-year concession and a significant step in Uganda’s second-generation energy reforms.”
She added that UEDCLTD now assumes full responsibility for electricity distribution, aiming to enhance financial sustainability, expand access and improve reliability. It would maintain service continuity, with improvements to the network and services to ensure reliable electricity supply.
In a public advisory, UEDCL has assured customers that all electricity services would remain uninterrupted throughout and beyond the transition.
“Electricity vending and loading will continue normally via MTN, Airtel, banks, and other collection platforms,” the company said.
Despite the handover, public concern remains high about the risk of disruptions to electricity supply as Uganda transitions from a private distributor to full government control.
UEDCL has pledged continuity and stability as it assumes full operational control starting April 1, under ERA Licences No.ERA/LIC/DIS/024/231 and ERA/LIC/DIS/024/232.
With the curtain finally closing on Umeme’s controversial but pivotal two-decade run, all eyes are now on UEDCL and the government to deliver reliable power and usher in a new era for Uganda’s electricity sector.
Umeme’s 20-year concession in Uganda’s electricity distribution has been a mixed bag.
On one hand, the company has made significant contributions to the country’s power sector, including expanding electricity access from less than 5% to over 25% of the population, reducing energy losses from 38% to below 15%, and investing over $800 million in infrastructure to improve power reliability.
Source: https://energynewsafrica.com
Uganda has signed a final agreement with Alpha MBM Investments, a UAE-based company, to establish a 60,000 barrels per day oil refinery in Kabaale, Buseruka Sub-County, in Hoima District.”
The deal was signed between Uganda’s Ministry of Energy and Mineral Development and Alpha MBM Investments at the State House Entebbe, with President Yoweri Museveni in attendance.
This $4 billion project is expected to be a game-changer for Uganda’s energy sector, reducing the country’s reliance on imported petroleum products and serving neighboring countries.
The project will also include the construction of a 211 km multi-product pipeline to a storage terminal in Namwabula, Mpigi District, as well as a storage terminal for refined products in Namwabula.
The refinery is expected to be constructed within three years and will process crude oil from Uganda’s Albertine Graben region.
President Yoweri Museveni was overjoyed, beaming with smiles, as he expressed his heartfelt gratitude to the UAE-based company for choosing to invest in Uganda
“Today, I witnessed the signing of a historic oil refinery implementation agreement between Uganda and Alpha MBM Investments LLC, a company based in the UAE. This agreement will see the construction of a crude oil refinery in Hoima District, with a capacity of 60,000 barrels per day,” he added.
“The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them,” said Museveni.
”We must stop exporting raw materials and instead add value to everything we produce,” President Museveni said during his address at the signing ceremony.
President Yoweri Museveni at the middle.
The agreement paves the way for the design, construction, and operation of the 60,000 barrels-per-day (bpd) refinery, marking a critical step in Uganda’s quest to unlock value from its petroleum resources.
Once operational, the refinery will process Uganda’s crude oil into a range of petroleum products, including gasoline, diesel, kerosene, jet fuel, and heavy fuel oils.
It is expected to significantly reduce Uganda’s reliance on imported refined fuel, stabilize fuel prices, and boost national energy security.
Uganda’s oil imports have shown significant growth over recent years.
In 2020, the country imported mineral fuels and oils valued at approximately $976 million.
By 2022, this figure had increased to about $1.6 billion, with the majority of these imports originating from Gulf countries and approximately 90% transiting through Kenya.
Source: https://energynewsafrica.com
US President Donald Trump has threatened secondary sanctions on Russia’s energy industry if Washington and Moscow fail to seal a ceasefire deal for Ukraine.
“If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia’s fault — which it might not be — but if I think it was Russia’s fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia,” Trump told NBC in an interview.
Trump also said he was “pissed off” with comments that Russia’s Vladimir Putin made about the legitimacy of Volodymyr Zelensky’s government and the suggestion that the Ukrainian leadership must change if a peace agreement is to be legitimate.
Russia’s president has repeatedly argued that elections in Ukraine are key to the success of the peace-negotiations process.
It seems President Trump’s idea for additional punishment of Russia’s energy industry is the same as the one adopted with regard to Venezuela.
As Trump explained it to NBC, “That would be that if you buy oil from Russia, you can’t do business in the United States. There will be a 25% tariff on all oil, a 25- to 50-point tariff on all oil.”
Such a step would almost certainly push oil prices considerably higher, given Russia’s weight as an oil exporter, and that would go against Trump’s promise for cheap energy.
The 25% secondary tariffs on Venezuelan oil already had that effect on benchmarks. The tariff is activated for any trade with the U.S. of a country that imports Venezuelan crude.
Immediately after Trump’s announcement of the tariffs, loadings of Venezuelan oil slowed, according to a Bloomberg report from the end of last week. This pushed Brent crude and West Texas Intermediate to a third consecutive gain, although this week trade began with a dip for both benchmarks.
Source: Oilprice.com