As the Nigerian National Petroleum Company Limited (NNPCL) prepares to lift petrol from the $20 billion Dangote Petroleum Refinery on September 15, Nigerians are eagerly anticipating relief from the ongoing fuel scarcity.
The NNPCL, however, has cautioned that the price of Premium Motor Spirit (PMS) will be influenced by factors such as foreign exchange rates and market dynamics, as the market is now fully deregulated.
NNPCL’s Executive Vice President of Downstream, Adedapo Segun, on Thursday, noted that market forces would dictate fuel prices moving forward.
This comes as independent oil marketers reported that over 2,000 tankers are still waiting to load fuel at depots in Lagos, Warri, and Port Harcourt.
The Federal Government also announced that a massive supply of petrol would hit the market over the weekend, with vessels beginning to offload products, though it ruled out fixing petrol prices.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than the government or NNPCL,” Segun explained.
He further revealed that NNPC has already supplied 30 million barrels of crude oil to the Dangote Refinery and plans to deliver an additional 17 million barrels in the coming months.
Despite speculation that NNPCL had started lifting petrol from the refinery and was selling at ₦897 per litre, Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, denied these claims.
He clarified that no refined PMS had been lifted from the refinery yet, and price fixing does not fall under the company’s purview.
However, a Presidency source, who spoke on condition of anonymity because he was not authorized to speak on the matter, told The Punch that Dangote and not the NNPC would determine the price of the product, insisting that the refinery would not sell below the cost price.
The source said, “It’s a private business, Dangote will determine the price of the product based on market realities.
“The Federal Government has already intervened by asking NNPC to sell crude to Dangote in naira. So far, 30 million barrels of crude oil have been supplied to Dangote. Between now and October, Dangote’s refinery will receive 17.8 million barrels of crude from the Federal Government, in addition to the 30 million barrels already supplied.
“The Federal Government stated that going forward crude should be sold to Dangote in naira to alleviate the pressure of seeking foreign exchange. This also allows him to sell to marketers in naira. How else can the Federal Government intervene?
“Dangote claims that the Federal Government will determine his price, he is being economical with the truth. He certainly will not sell below his cost price.
“The only role of the government as a regulator is to ensure that businessmen like Dangote do not take undue advantage of Nigerians. The government will also ensure product quality and prevent Dangote from setting arbitrary prices. By implication, the government will not allow him to set arbitrary prices.”
The Minister for Petroleum Resources, Heineken Lokpobiri, expressed hope that there would be availability of petrol at the weekend.
He said this following a meeting with the Vice President, Kashim Shettima, as well as the Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, and the Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Ogbogu Ukoha, at the State House on Thursday.
Lokpobiri said the meeting was at the instance of President Bola Tinubu, who, he said, was concerned about the hardship being faced by Nigerians
He urged Nigerians to desist from panic buying, stating that while the government was not fixing prices, the prices would stabilise as soon as the product was made available.
Lokpobiri stated, “What is important is for us to convey to Nigerians that the President is empathetic about what is going on in the country. He is concerned about the hardship of Nigerians, and that was why he directed the Vice President to call this meeting, for us to reflect on what is going on in the country.
“What is important is that products are available in the country, and we believe that between now and the weekend, there will be availability of products across the length and breadth of the country.
“The price could be high in some other areas, much higher in some other locations, and in some locations, much more than you know in other areas. But we believe that by the time there is availability of products across the country, the price itself is stabilised.”
He added, “What is important is that the government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigeria to know.
“There are enough products in the country to be able to meet the demands of Nigerians; there should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians,” he said.
Executive Director, NMDPRA, Ukoha, while speaking with State House correspondents, stated, “All regulatory efforts are now geared towards stabilising supply, with a resultant impact that it will be positive also on the stability of price.
“To that objective, the regulator is ensuring that there are increased operating hours from all loading depots, vessels are being cleared promptly, and extended hours where safety can permit, for truck outs as well.
“More important also is the reinforcement of the support being given to local refinance, because with increased production from them, indeed, like the minister has said, there will be higher supply, which will stabilise the price. That’s the effort that the regulator is making.”
