NNPC Moves To Shut Down Stations Hoarding Fuel

Aside the directive to dispense free fuel to the public at any petrol station hoarding the product given to the Department of Petroleum Resources (DPR), the body will be further empowered to shut down erring stations.

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru made this known on Tuesday in Ogun state at the commissioning of Petrolex’s 300-million litres tank firm in Ibefun, Ogun state.

Baru blamed the resurgence of queues at petrol stations on the activities of independent marketers bent on hoarding the product in anticipation of scarcity.

He said: “We must have noticed the sudden return of fuel queues in some parts of the country last week; this is unfortunately attributable to the activities of some independent marketers who are hoarding the product in anticipation of perceived (increase in) price of petroleum product.

“We’ve said it time and time that the government and NNPC has no intention of increasing the price of petroleum at this moment.

“Moving forward however, DPR will be more aggressive in curtailing this menace by sealing any petrol station found hording petroleum products. The products will be dispensed to motorists free of charge, so be on notice.”

Source: TheHerald

Oil prices reach previous high of 2015!

Brent crude, the international benchmark for crude oil, traded at $65.24 a barrel.

Brent crude oil prices jumped above $65 per barrel after the shut-down of the Forties North Sea pipeline knocked out significant supplies.

The last time oil prices reached this point was in June 2015 when it traded at $65.49.

United States West Texas Intermediate (WTI) crude futures rose to $58.21 a barrel on Wednesday.

Britain’s Forties oil pipeline, the country’s largest at a capacity of 450,000 barrels per day (bpd), stopped production on Monday after cracks were revealed.

“The market reaction shows that in a tight market, any supply issue will quickly be reflected in higher prices,” said ANZ bank.

The jump in Brent prices widened its premium to WTI prices, making U.S oil exports more attractive. The Organisation of Petroleum Exporting Countries (OPEC) had agreed on an output production cut to reduce the supply glut which led to a decline in oil prices.

Nigeria and Libya were exempted from the cuts due to crisis in the Niger Delta but the two countries are now signalling their intention to raise output next year.

While several ministers at the November 30 meeting of OPEC suggested the two nations had joined the output-curbing deal, both are working to add to their peak production from 2018.