As Nigerians anticipate the release of petrol from the $20bn Dangote Petroleum Refinery, the Nigerian National Petroleum Company Limited (NNPC) has announced that it will lift the product from the plant on September 15. The company highlighted that foreign exchange rates and market forces would play a significant role in determining the price of petrol, as the market has been deregulated.
NNPC’s Executive Vice President of Downstream, Adedapo Segun, stated that the current fuel scarcity is expected to subside in the coming days as more stations begin selling Premium Motor Spirit (PMS). Segun emphasized that Section 205 of the Petroleum Industry Act (PIA) stipulates that petroleum prices are determined by unrestricted free market forces, and not by the government or NNPC.
Oil marketers have noted that approximately 2,000 tankers are currently awaiting to load petrol at NNPC depots in Lagos, Warri, and Port Harcourt. Meanwhile, the Federal Government has declared that a substantial supply of petrol is expected this weekend as vessels have started offloading, although it has ruled out any fixed pricing for PMS.
Experts suggest that the government’s latest stance on petrol pricing might indicate the end of petrol subsidies. NNPC acknowledged that foreign exchange illiquidity has contributed to the fluctuating prices of petrol, emphasizing that these prices are influenced by the free market as outlined in the PIA.
Dangote petrol
On the commencement of lifting PMS from the Dangote refinery, Segun said NNPC was awaiting the September 15 timeline provided by the refinery, adding that the national oil firm 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.”
“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,” he stated.
2,000 tankers
Meanwhile, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, Mustapha Zarma, told one of our correspondents that dealers had most of their trucks trapped at depots awaiting product from NNPC.
“The queues in Abuja are heavy. Nobody is loading. Right now, most of the tickets of independent marketers, which had been paid for since the last three months, have not been cleared to load,” Zarma told The PUNCH.
“And with the recent increase in the price of petrol, there has not been any official statement to say that this is the additional money you are supposed to pay before you lift your order. It is only the retail arm of NNPC that is lifting products to their stations.
“We have over 2,000 trucks that are at the various depots and they will not give you the product now until you pay up the difference. And up till now, they have not communicated to us what the difference is.”
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