The Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery clashed yesterday over petrol pricing following NNPCL’s first lifting of the product from the refinery. NNPCL received the initial supply at N898 per litre, but Dangote Refinery stated that the price was not part of any agreed pricing structure.
Dangote clarified that the N898 per litre price was due to the use of imported crude for refining, making the cost tied to the dollar exchange rate. In a statement, Anthony Chiejina, Group Chief Branding and Communications Officer, called NNPCL’s claims about the price “misleading and mischievous.”
Mr. Olufemi Soneye, Chief Corporate Communications Officer, NNPC Limited, was earlier reported to have said it bought the product at N898 per litre, in contradiction to reports that it was sold to it N766 per litre.“Clarifying this, Dangote said: “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per f to the NNPCL.““This statement is both misleading and mischievous, deliberately aimed at undermining“the milestone achievement recorded today, September 15, 2024, towards addressing“energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.
““We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude“sales to local refineries, appointed by President Bola Ahmed Tinubu which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.““It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every“local government area of the country regardless of their remote nature.““We assure Nigerians of availability of quality petroleum product and putting an end to the“endemic fuel scarcity in the country.”
Meanwhile, reports suggest that Nigeria’s fuel shortage may persist due to a 38.8% shortfall in the initial delivery of premium motor spirit (PMS) from Dangote Refinery to NNPCL. The 650,000 barrels per day refinery was expected to supply 25 million litres of petrol but has so far only delivered 16.8 million litres.
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently noted that domestic petrol consumption has dropped by 33.58% to 44.3 million litres per day from 66.7 million litres, meaning the 16.8 million litres is insufficient to meet demand.
In a letter to NNPCL, Dangote Refinery confirmed the release of 12,200 metric tons of PMS to NNPC Trading Limited, to be transported by road trucks. To aid distribution, NNPCL has mobilized over 300 trucks and berthed a vessel for transport.
NNPCL had initially issued a Letter of Credit for over $120 million to cover the 25 million litres, but Dangote Refinery later informed them of the reduced delivery. The PMS from this batch was priced at N898 per litre as part of a “naira for crude” arrangement, where local refineries receive crude oil and sell petroleum products in naira.
NNPCL: We’re Lifting 16.8 Million Litres at N898/Litre
Confirming the development, yesterday, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said: “We successfully loaded PMS today (yesterday) at the Dangote Refinery. The report stating that we purchased it at N1, 300 per litre is false.
“For this initial loading, the price was N898 per litre. I can also confirm, in response to your inquiry, that we will receive 16.8 million litres. As of now, 4.09PM (Sunday) we have loaded over 70 trucks.”
Similarly, the Executive Vice President (Downstream) of the NNPCL, Dapo Segun, pledged the commitment of the NNPCL to the deal, saying: “As a shareholder in the Dangote refinery with 7.25 per cent interest, we are committed to the lifting of product.
“We are running a business. Dangote is running a business. I can tell you there’s nothing unfair going on. Everything that’s going on is according to the terms and conditions signed by both parties, and that is the way business should be done.”
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