Dangote Refinery has clarified that NNPC Limited is yet to commence the lifting of petrol at the facility as both parties are still negotiating terms.
This is as the NNPC emphoasised that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA).
Group chief branding and communications officer, Dangote Group, Anthony Chiejina in a statement on
Thursday said the company is not in a position to determine the price of petrol as the sector is regulated.
He faulted the media report that NNPC had commenced the lifting of petrol from the refinery.
“We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.
“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalise our contract with NNPC.
“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities”.
He urged the public to disregard the reports “as it is misleading and does not represent the true position in this matter.
“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”
Meanwhile, the NNPC has explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.
Speaking in a national television programme on Thursday, executive vice-president, Downstream, NNPC, Adedapo Segun, said Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by unrestricted free market forces.
According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd.
Additionally, the exchange rate plays a significant role in influencing these prices.”
On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd was awaiting the September 15th timeline provided by the refinery
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd had nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”
The NNPC also disclosed that over 17.6 million barrels of crude oil will be delivered to Dangote Petroleum Refinery between September and October.
said the move is part of the federal government’s push to drive local production of petroleum products.
“We have supplied about 30 million barrels to Dangote so far. Six-point-three million this month, and we will supply 11.3 million in October,” he added.
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