THE NATION
- Agreement on pricing template between firm, govt yet to be reached
- NMDPRA battles to end scarcity, restore supply sanity
A flurry of activities is going on to end the crippling petrol scarcity in the country.
The Dangote Refinery which announced the rollout of the product from its plant on Tuesday could not make it available for at the pumps yesterday as promised.
President Bola Ahmed Tinubu, who is away in China on official assignment, directed a meeting chaired by Vice President Kashim Shettima, attended by Minister Heineken Lokpobiri, oil giant chief Mele Kyari and National Security Adviser (NSA) Nuhu Ribadu.
Petrol scarcity has been biting since July, with queues worsening across cities.
On the day Dangote Refinery commenced petrol production with a promise to make it available in 48 hours, the Nigerian National Petroleum Company (NNPC) Limited filling stations adjusted their meters to reflect new prices.
Petrol which sold for N568 at NNPCL filling stations in Lagos went for N855 per litre.
In Abuja where it sold for N617, the oil firm’s filling stations moved the price to N897.
Petroleum regulatory agencies took significant steps and gave assurances that petrol would soon flood the market.
Dangote Refinery yesterday said NNPCL was yet to lift petrol from its facility.
Group Chief Branding and Communications Officer, Mr. Anthony Chiejina, in a statement, said the issue of fixing the price of petrol was not yet decided as the refinery was yet to finalise its contract with NNPCL.
“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.
“We are guaranteeing Nigerians of exceptionally high-quality petroleum products that will be readily available all over the country,” the company said.
A source said yesterday that one issue to be considered while discussing with the government is the cost of production or what was termed “production template.”
“The price will be determined by this,” the source said.
On whether the refinery will apply the new template made public on Tuesday, the highly knowledgeable source said that would depend on what Dangote Refineries presents as its production cost.
Speaking on a television programme yesterday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun, said foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in petrol prices.
These, he said, are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
He explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate their metres and begin selling PMS.”
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