FOLLOWING weeks of media war and blame game, the Nigerian National Petroleum Corporation Limited (NNPCL) has finally reached a compromise with the Dangote Petroleum Refinery on Petroleum Motor Spirit (PMS) lifting.
The NNPCL confirmed this on its verified X handle in a two-paragraph tweet stating that “in preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Ltd. has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki.
“As of Saturday afternoon, NNPC Ltd. had deployed over 100 trucks, with hundreds more en route,” the tweet read.
This move is expected to finally clear perennial queues in fueling stations across the country that has seen Nigerians buy fuel at an all-time high ranging from N855 to N1,400.
Recall that the President and Chief Executive of the Dangote Industries Limited, Mr Aliko Dangote, in a live press briefing on September 3, 2024, announced the readiness of its 650,000 bpd refinery to start petroleum rollout.
Mr Dangote in separate interviews declared that the NNPCL would be the sole buyer of the petrol from its refinery, which has led to wild reactions from stakeholders in the petroleum industry.
Mr Dangote was also quot-ed, when asked about the likely price of the product, that “the NNPCL will determine pricing.”
According to inside sources,
the pronouncement didn’t go down well with the petroleum body, who only hastily adjusted their pump price to N855 per litre from N580 just few hours before the Dangote announcement.
The action of the NNPCL was greeted with mixed reactions as experts say it was a ploy to remove subsidy permanently before the Dangote petrol hits the streets.
The action of the NNPCL triggered a new price across the nation and even worse off as the product was not available across the country.
On its part, the Dangote Group insisted that the petrol sector is a regulated market and the sole responsibility of the NNPCL to determine the price.
In a partial response to a press release on the official X handle of the Dangote Group signed by the Group Chief of Brands and Communication, Mr Anthony Chiejina, the NNPCL noted that petrol is going to be bought on a willing buyer, willing seller basis and the Dangote Group is free to sell to any interested party at any amount.
While the blame game continued, inside sources told the Sunday Tribune that the Dangote Group might resort to selling it product outside Nigeria as NNPCL was stalling in activating the agreement.
During a X Space hosted by Nairametrics on Wednesday, September 11, the Vice Presi-dent, Oil and Gas of the Dan-gote Group, Mr Devakumar Edwin, lamented that the Dangote Group has suffered low patronage from within Nigeria.
In a press briefing on Friday, Chairman of the Federal Inland Revenue Service (FIRS), and member of the Presidential Committee on the Sale of Crude Oil and Refined Prod-ucts, Mr Zaccheous Adedeji, confirmed that the NNPCL will be the sole off-taker of the Dangote Petrol adding that “All agreements have been finalised, and loading of the first batch of Premium Motor Spirit (PMS) from the Dangote Refinery will start on Sunday, September 15.”
“Starting from October 1, NNPC will begin supplying approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments made in naira.
“In return, the refinery will provide PMS and diesel of equivalent value to the domestic market, also paid for in naira.
“Dangote Refinery will sell diesel to any interested buyer in naira, while PMS will be sold only to NNPC, which will then distribute it to other marketers. All related regulatory costs will also be paid in naira,” Adedeji explained.
While there seems to be no official confirmation of the loading price, it is unlikely that the NNPCL will change their new pump price and as such, Nigerians may have to buy petrol at the present rate with little changes in price.
However, with the landing cost of crude oil at over N800/L to the Dangote Refinery, the NNPCL in its arrangement with the Dangote Group might see both parties meet in middle ground to provide reasonable pricing to Nigerians especially when the crude for Naira exchange starts in October 1.
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