The plan for the Nigerian National Petroleum Company Limited (NNPCL) to begin lifting petrol from Dangote Refinery on Sunday, September 15, 2024, is facing fresh challenges. Sources close to the matter indicate that both parties have not yet finalized an agreement on the quantity and price of Premium Motor Spirit (PMS) that will be supplied by Dangote Refinery.
Last week, Adedapo Segun, Executive Vice President of Downstream at NNPCL, announced that the company was set to start collecting petrol from Dangote Refinery on the specified date. He highlighted that the pricing of petrol would depend heavily on foreign exchange rates and market forces. However, as the date approaches, it seems that the agreement is still up in the air.
Government sources have disclosed that, as of now, there is no documentation from NNPCL or the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding the planned product lifting from Dangote Refinery. “There is no arrangement to lift petrol from Dangote Refinery on the 15th of September,” an anonymous source stated.
Efforts to get a response from NNPCL spokesperson, Olufemi Soneye, have been unsuccessful so far. Previously, the NNPCL stated that it would only fully take over petrol from Dangote Refinery if the market prices were higher than the pump prices in Nigeria. This has led to questions about whether pricing disagreements may be the root cause of the current delay.
Meanwhile, Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria, has expressed optimism. He believes that if the Federal Government follows through on its commitment to sell crude oil to domestic refineries in Naira, the price of Dangote Refinery’s petrol should remain affordable. “If the government’s concessions come through, Dangote’s fuel prices should be cheaper,” Idoko said.
As the clock ticks down to September 15, all eyes are on whether the deal between NNPCL and Dangote Refinery will materialize in time, or if further delays will push back the commencement of the much-anticipated fuel supply.
