VANGUARD
LAGOS — Amidst lingering supply bottlenecks in the petroleum downstream sector, the uncertainty around pricing has pitched the management of the Nigerian National Petroleum Company Limited (NNPCL) and that of Dangote Refinery in a battle to determine petrol price acceptable to all stakeholders in the petrol supply value chain.
The bone of contention includes the social impact factor in balancing market with affordability.
Vanguard learned that a wide gap exists between offer prices given by both parties, a situation which has stalled the negotiations for over two weeks now, making it difficult for Dangote to go ahead with rolling out its product to local marketers.
Insider sources told Vanguard that while NNPCL is going for a subsidy-compatible pricing, Dangote is positioning for a market-reflective pricing.
But the source said both parties are fully aware of each others’ constraints, and they are now going for a middle ground that will ensure stability and sustainability in both supply and pump price.
Another round of meeting, according to the source, has been scheduled for today at NNPCL headquarters where a likely shift in grounds may be achieved.
Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, who confirmed the negotiations, told Vanguard that they are optimistic that a mutually-agreeable price and other terms would be reached eventually.
He, however, said that NNPCL will be guided by its obligations as provided under the Petroleum Industry Act, PIA, in agreeing to any price.
We are working to clear supply backlog —NNPC
Meanwhile, the NNPCL said its purchasing portal will be reopened as soon as backlog of orders for petrol is cleared.
Marketers had complained about the portal shutdown, adding that it encourages round-tripping of product supplies, while driving up prices of petroleum products.
In a press statement yesterday, Soneye, said: “We have a significant backlog to address. The closure is intended to prevent us from holding marketers’ funds for an extended period.
“It will be reopened once the backlog has been sufficiently reduced. We are working to address it as soon as possible.”
However, speaking at a just-concluded webinar – ‘Optimising the Nigerian Oil and Gas Industry’ – Chairman, Major Energies Marketers Association of Nigeria, MEMAN, Huub Stokman, called for increased collaboration among oil and gas downstream stakeholders to provide quality products and services to consumers.
Stokman stressed the importance of unity among businesses, government agencies, and regulatory bodies to ensure affordable services and products.
He said: “Our primary focus should be on our customers. While running our organizations is important, our ultimate responsibility is to deliver quality goods and services.”
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