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UK petrol prices are closing in on all-time high, warns RAC

petrol prices

UK petrol prices are closing in on all-time high, warns RAC

Petrol prices could reach all-time highs before Christmas, the RAC warned, signalling “misery” for motorists still reeling from the fuel shortage crisis.

Amid signs that the number of petrol forecourts running dry was easing, the drivers’ organisation warned that anxiety about whether motorists could fill up their tanks was likely to be replaced by concern about how much it would cost.

The average price of a full tank was already about £12 higher in September than a year earlier, the RAC said, with rising oil prices putting more upward pressure on pump prices.

Both petrol and diesel had already reached levels last seen in autumn 2013 and were closing in on the all-time record set in April 2012, the RAC said. Petrol was less than 6p below the record of 142.48p a litre.

Unleaded petrol rose by 1.5p in September to 136.83p a litre, 22p more expensive than last year, while diesel rose by 2.5p to 139.25p, a rise of 21p on 2020 prices. This took the cost of filling a 55-litre tank to £75.26 for petrol and £76.59 for diesel – for each about £12 more than last year.

The RAC said the increases were not connected to the fuel shortages that had affected forecourts across the UK in recent weeks caused by a shortage of tanker drivers and panic-buying by motorists.

The organisation instead linked the prices to the cost of oil, which increased 10% in September and moved above $80 (£57) a barrel this week. The Wall Street bank Goldman Sachs has predicted further rises, to $90 (£66), by Christmas.

The RAC’s fuel spokesperson, Simon Williams, said that oil demand was outpacing supply as economies begin to pick up pace amid eased Covid restrictions, with the increase exacerbated by Opec opting not to increase oil flows significantly this week.

He said: “[The trend] looks likely to spell further misery for drivers at the pumps as we head towards Christmas … If this were to happen we could see the average price of unleaded hit a new record of around 143p per litre. Diesel would shoot up to 145p, which is only 3p off the record high of 147.93 in April 2021.”

Williams added that, despite a few isolated cases, more expensive pump prices were not due to retailers exploiting the fuel shortages to take advantage drivers.

Shortages were easing on Tuesday, as the Petrol Retailers Association (PRA) said that about 64% of fuel stations in London and south-east England, the regions worst hit by the crisis, had both petrol and diesel available; previously the figure was 62%. Just 15% were dry, an improvement on Monday’s 20%, while further 21% were offering either petrol or diesel, up from 18% a day earlier.

However, the PRA executive director, Gordon Balmer, said those regions were still lagging behind the rest of the country, despite the deployment of soldiers to drive fuel tankers so as to plug a persistent shortfall of HGV drivers that had also affected supply chains in the retail and food sectors.

The RAC said its breakdown service had attended 13 times as many cars that had run out of fuel as usual.

Williams said: “As forecourts’ fuel stocks return to normal drivers will inevitably switch from worrying about whether they can get the petrol or diesel they need, to just how much a fill-up is costing them.

“Drivers in London and the south-east will undoubtedly feel particularly hard done by as they are still experiencing problems with getting hold of fuel while also paying the highest prices in the UK.”

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Tinubu increases 2025 budget to N54.2tn

President Bola Tinubu has raised the proposed 2025 budget from ₦49.7 trillion to ₦54.2 trillion, citing additional revenues generated by key government agencies.

The President conveyed the budget adjustment in separate letters sent to both the Senate and the House of Representatives, which were read during plenary today by the Senate President, Godswill Akpabio.

According to President Tinubu, the increase was driven by ₦1.4 trillion in additional revenue from the Federal Inland Revenue Service (FIRS), ₦1.2 trillion from the Nigeria Customs Service (NCS), and ₦1.8 trillion generated by other government-owned agencies.

Following the announcement, the Senate President has referred the President’s request to the Senate Committee on Appropriations for urgent consideration.

He assured lawmakers that the budget would be finalised and passed before the end of February.

With this development, the National Assembly is expected to fast-track deliberations to ensure timely approval and implementation of the 2025 budget.

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NMDPRA seals off 19 illegal LPG depot in Delta

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has sealed 19 illegal Liquified Petroleum Gas, LPG, and category D cooking gas outlets in Delta State.

Speaking with newsmen on Tuesday in Warri, Coordinator, NMDPRA in Delta, Victor Ohwodiasa said the illegal gas outlets were sealed within the past two weeks.

He said they were shut in Orerokpe, Ogwashi-Ukwu and Warri and its environs of the state.

The category D class of LPG operators are the ones within localities that refill gas from licensed gas plants for customers to pick up from them.

Ohwodiasa said the illegal gas outlets were shut over offences ranging from lack of prerequisite approvals to operating such facilities in unsafe locations.

“During the operations, about 28 illegal outlets were spotted by the authorities. We tried to see if it is possible to have them regularised as they were wrongly sited.

“The outlet that was sealed in Ogwashi-Ukwu was a five metric tonnes refilling plant constructed on a roadside closed to a high tension cables.

“The authority looked at the environment, it was wrongly sited on a right of way and has no approval. It was sealed and a relocation order issued immediately.

“Other offenders were the ones doing what we called, “decanting”, meaning bottle to bottle transfer. We do not allow that.

“What they are expected to do is “bottle swap”, bring your empty cylinder and go with a filled one,” he said.

The coordinator said the essence of the exercise was not to frustrate the small scale gas business owners but to ensure they operate in a safe and secured environment.

Ohwodiasa appealed to landlords not to allocate portions to the LPG category D operators who want to do illegal business on their premises or properties.

According to him, the essence is to prevent possible fire outbreak that could destroy lives and properties of the operators and the neighbours.

He said that NMDPRA was committed to ensuring lives and properties were adequately protected.

“Imaging someone storing cooking gas close to where welding operation is taking place or where a woman is frying beans cake or roasting corn. Once there is a leakage, the resultant effect will be catastrophic.

“If the operator of the illegal outlet does not appreciate his life, it is our duty to ensure he does not kill himself and others by illegally operating such a facility,” he said.

Ohwodiasa said the regulatory authority would continue to sustain the exercise in the state and assured that anybody found wanting would face the full wrath of the law.

He also said that any offender that refused to relocate his facility would be handed over to the relevant security agencies for prosecution.

The coordinator appealed to the public to report anyone transferring cooking gas from one cylinder to another to the NMDPRA for prompt action, “help us to serve you better”.

Ohwodiasa while assuring that the regulatory body would continue to sensitise the operators, said the authority had annual stakeholders engagement with the gas plant owners and the category D operators.

He also said the regulatory authority organised jingles on Radio and Television stations to educate people on the best ways to handle cooking gas because of its volatility.

The coordinator thanked the Chief Executive of NMDPRA, Ahmed Faruok for his consistent support for the state’s operations.

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FG bans export of crude oil allocated to domestic refineries

The Federal Government has banned the export of crude oil meant for domestic refineries in the country.

About 500,000 barrels of crude oil per day meant for domestic refining have been finding their way to the international market as producers and traders shortchange the policy for quick foreign exchange proceeds.

Acting through the upstream sector regulator, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, the government warned that it will henceforth deny export permits for crude oil cargoes intended for domestic refining.

The commission in a statement in Abuja, insisted that any changes to cargoes designated for domestic refining must receive express approval from its chief executive.

In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the commission’s Chief Executive Officer, Engr. Gbenga Komolafe said diverting crude oil meant for local refineries is a violation of the extant laws of the country.

At a meeting last weekend, attended by more than 50 critical industry players, both refiners and producers blamed each other for inconsistencies in the implementation of the Domestic Crude Supply Obligation, DCSO, policy.

While refiners claimed that producers are not meeting supply terms and preferred to sell crude outside, forcing them to look elsewhere for feedstock, producers countered that refiners hardly meet commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.

They, however, agreed that the regulator has put in place appropriate measures for effective implementation of the law.

The regulator cautioned against any further breaches from either party, and advised refiners to adhere to international best practices in procurement and operational matters.

The commission reminded producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the chief executive before selling crude outside the agreed framework.

Komolafe referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure stable supply of crude to domestic refineries and strengthen the nation’s energy security.

He said NUPRC would, henceforth, strictly enforce the policy regarding implementation and defaults by oil companies.

He stated that significant regulatory actions had already been taken by the commission, in line with enabling laws to enforce compliance with the DCSO.

These actions, according to him, include development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as the creation of the DCSO framework and procedure guide for implementation.

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