- NNPC Becomes Sole Buyer Of PMS From Dangote – FG
- Sale Of Crude Oil In Naira Commences
- Moves to Stop PMS Import by October
- We Don’t Know What The Government Is Doing – Marketers
The Nigerian National Petroleum Company Limited, NNPCL has delivered on its promises to begin lifting petrol from the Dangote Refinery on September 15, 2024 in line with the refinery’s schedule.
According to the federal government, the move is expected to ease the ongoing fuel shortages and reduce long queues at filling stations across the country. The petrol company (NNPC) has also implemented measures to ensure a steady and uninterrupted supply of petrol nationwide.
Ahead of the scheduled petrol loading on Sunday, NNPCL has deployed a total of 300 trucks to the Dangote Refinery, set to transport the fuel.
NNPCL Chief Corporate Communications Officer, Mr. Olufemi Soneye, confirmed this development to newsmen. He said: “We have started deploying our trucks and vessels to the Dangote Refinery to lift PMS (petrol) in preparation for the scheduled lifting on September 15.”
“We are expecting more trucks, and the deployment will continue throughout the weekend so we can start loading as soon as the refinery begins operations on the 15th (tomorrow).
However, unless there are last-minute changes, the Dangote Refinery is expected to release the first batch of 16.3 million litres of Premium Motor Spirit (PMS), commonly known as petrol, to the NNPCL
Hopes are high as Nigeria expects a reduction in the price of petrol. The NNPCL’s current petrol pump price is N897 per litre with independent marketers vending the product for as much as N1,200 per litre and black marketers selling in plastic Jerry cans uncontrollably for as much as N13,000 per 10 litre.
NNPC Sole Buyer Of PMS From Dangote – FG
In the absence of marketers occupying the Dangote refinery with their trucks, the Federal Government has reiterated that the Nigerian National Petroleum Company Limited (NNPCL) will serve as the exclusive buyer of Premium Motor Spirit (PMS) from the Dangote Refinery.
Marketers interested in purchasing PMS will therefore need to buy the product from NNPC Ltd through its trading company.
Honorable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the clarification during a press briefing.
“For now, PMS will only be sold to NNPC, which will then distribute it to various marketers.” his statement in part.
However, this development, contrasts with a previous NNPC statement earlier this month, where the company claimed it did not intend to be the sole distributor of petrol from the Dangote Refinery.
Therefore, if the Federal Government takes this new line of action, the new directive also suggests that the government may still influence pricing, as it will be determined by agreements between the government and the refinery.
READ ALSO: PHOTOS: NNPCL Deploys Over 100 Trucks To Dangote Refinery For Petrol Lift
In-between, the Independent Petroleum Marketers Association of Nigeria and other sister marketers call on the federal government to give unrestricted access to Premium Motor Spirit (petrol) from the Dangote refinery, criticizing the Nigerian National Petroleum Corporation’s (NNPCL) dominance in the market.
Reacting to the back-track, and statement made by the federal government, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, said the market should be open for all in line for those who are willing to buy and willing to sell.
Also, the National President of the Petroleum Products Retail Outlets Association of Nigeria, Billy Gillis-Harry, raised concerns over the risks of creating a new domestic monopoly in the oil and gas sector. he said : “Right now, even on Saturday, that business (petrol) is going to start rolling out tomorrow (Sunday), we don’t know what the price might be.
Nobody has informed us about anything; we are not aware of what the government is doing.
“We don’t know any of the pricing templates yet or the matrix that will bring about the pricing template. We have been asking Dangote or anybody that is in charge of this transaction to be transparent, but somehow, we have not got any of that information.
“We are about to leave the NNPC monopoly from importation and now we are also going to have that in a domestic environment, that portends danger for the industry.”
Dangote Petrol Per Litre
While both Dangote, NNPC and the Federal Government have kept Nigerians on suspense, there are speculations from different quarters of the industry that the Dangote refinery would sell its petrol at N766 to the NNPC; others claim it would be reduced from the initial 890/Litre to N820 Per Litre.
Sale Of Crude Oil In Naira Commences
On the approval to sell crude oil to local refineries in naira and purchase petrol from the refiners in the local currency, the Federal Ministry of Information and National Orientation released a statement on September 14, announcing a groundbreaking initiative to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve petroleum product availability.
READ ALSO: Dangote Refinery: Marketers Refute Boycott Claims
The Federal Government has successfully launched the sale of crude oil to local refineries and the corresponding purchase of petroleum products in Naira.
Following a Technical Sub-Committee meeting, the Minister of Finance, Wale Edun, revealed that all agreements and modalities for implementing the Federal Executive Council’s (FEC) approval have been finalized. The FEC had previously approved the sale of crude oil to local refineries in Naira and the corresponding purchase of petroleum products in Naira.
This initiative aims to alleviate pressure on the Naira, reduce transaction costs, and enhance petroleum product availability nationwide. The implementation committee, chaired by the Minister of Finance, and the technical committee have worked closely with NNPCL and Dangote Refinery to establish the implementation details.
The statement concluded by announcing that all agreements are now in place, and the first batch of PMS from the Dangote Refinery will be loaded starting Sunday, September 15.
