NNPC mute, as marketers raise pump price of petrol to N179/litre

Nigerian National Petroleum Company (NNPC) Limited has continued to maintain sealed lips over last Tuesday’s reported approval for an upward increase in the pump price of Premium Motor Spirit (PMS), also known as petrol, with effect from Tuesday.

It would be recalled that early Tuesday morning, marketers had adjusted their meters to a new pump price of N179/per litre from the original N165/litre the commodity was sold for, across the country.

It was also widely reported that the NNPC had quietly directed its depot managers to effect the price increase, while also directing marketing to adjust the pump price of the commodity upwards to N179 per litre.

Oracle Today did not see the circular reportedly copied depot managers, however, barely hours after, marketer through their selling outlets had already hiked the pump price of the commodity to its new rate.

NNPC had in a notice to depot managers and marketers directed them to adjust the petrol pump price on pumps effective from Tuesday. This was even as the company equally increased the ex-depot price from N148.17 to N167 per litre, on a day it unveiled its new corporate image as a limited liability company.

Efforts to get a confirmation or denial on the authorisation from NNPC did not yield fruits as checks on the company’s social media handles failed to provide an affirmation to that effect, even as the company’s spokesperson, Mallam Garba Deen Muhammad, has yet to refute the directive to depot managers.

Checks on filling stations in Lagos and Abuja, by Tuesday afternoon, confirmed that marketers had already began selling petrol to motorists at the adjusted pump price.

NNPC Limited has previously refused to sanction any increase in the pump price of petrol, just as the Federal Government opted to revive its fuel subsidy payment regime.

It is believed that Tuesday’s development may not be unconnected with the unveiling of the new corporate identity of the oil firm, which took place inside the Presidential Villa,in Abuja,  later same Tuesday.

President Muhammadu Buhari had Tuesday officially unveiled a new corporate brand of the NNPC Limited which now transforms it into a limited liability business entity, away from its previous ‘Corporation’ public enterprise structure, in line with the requirements of the recently Petroleum Industry Act (PIA) of 2021.

The renew structure also transforms the position of Mele Kyari, the Group Managing Director (GMD) into Group Chief Executive Officer (GCEO).

Earlier, last Monday, President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources, along with the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed signed the transfer of assets documents from NNPC as a Corporation to the Limited version created by the Petroleum Industry Act (PIA).

By this move, the NNPC Limited has completely shed off its former toga and now wears the new look and operations of a limited liability company. It also means that all assets, interests and liabilities of the Corporation have been transferred to NNPC Limited.

Reacting to the move, the NNPC GMD recently assured local and foreign investors that the new entity that would be regulated in line with the provisions of the Companies and Allied Matters Act, will position it as a partner of choice to all oil and gas companies globally.

The Corporate Affairs Commission (CAC) had on September 21 last year completed the incorporation of the NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.

The NNPC GCEO, Mele Kyari had explained that one of the things that will be different as the NNPC transitions is that it is expected to become a commercially-oriented and profit-driven national petroleum company that would be the envy of all players in the sector.

“Section 54 of the PIA states that that Bonds, Hypathecations, Securities, Deeds, Contracts, Instruments, Documents and working arrangements with regards to assets, interests or liabilities transferred to NNPC Limited or any of its subsidiary under subsection (1) will be effective and enforceable against or in favour of NNPC Limited.

“Specifically, Section 54 of the Act stated that ‘The Minister (of Petroleum Resources) and the Minister of Finance shall within 18 months of the effective date determine the assets, interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the Minister shall cause such assets, interests and liabilities to be transferred to NNPC Limited.’

“Assets, interests and liabilities of NNPC not transferred to NNPC Limited or its subsidiary under subsection (1), shall remain the assets. interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 (1) of this Act, the Minister, the Minister of Finance and the Attorney-General of the Federation shall develop a framework for the payment of the liabilities not transferred to NNPC Limited and if such determination of which assets, interests and liabilities to be transferred has not been concluded within the stipulated period of 18 months. all the assets, interests, liabilities of NNPC is deemed to be transferred to NNPC Limited after 18 months from the effective date.

“NNPC shall cease to exist after its remaining assets, interests and liabilities other than its assets, interests and liabilities transferred to NNPC. Limited of its subsidiaries under subsection (1) shall have been extinguished or transferred to the Government.”

“The legislation added that any pending action of proceeding brought by or against NNPC before the transfer date with regard to assets, interests or liabilities transferred to NNPC Limited under subsection (1) may be enforced or continued by or against NNPC Limited as the successor of NNPC,” Kyari said.

Meanwhile, Buhari during the unveiling ceremony, Tuesday, at the Presidential Villa in Abuja, expressed delight that he had consistently had the opportunity to shape the course of the petroleum industry in the country.

He thanked the National Assembly for facilitating the passage of the Petroleum Industry Act (PIA), which had been in the works over different administrations but only came to reality during the current dispensation.

Buhari formally launched the new Nigerian National Petroleum Company Limited, with a new logo and also a new motto, “Energy for Today, Energy for Tomorrow”.

He said it is a landmark event for the Nigerian oil industry, citing that the NNPC Ltd will be an independent, commercially viable company that will adhere to global energy standards.

“We are transforming our petroleum industry, to strengthen capacity and market relevance.

“I was privileged to lead the transition in 1977 to a corporation and also sign the Petroleum Act in 2021.”

He added that the PIA gives new impetus, and enhances regulation to ‘create a commercial driven and independent national oil company that will operate without government funding and free from institutional needs such as treasury single account.’