• Dangote Refinery Denies Agreeing to N898 Per Litre Price
• NNPCL Confirms Receipt of 16.8 Million Litres at N898 Per Litre
• Fuel Supply Shortfall Hits 33.58% as Dangote Delivers Below Expectations
• IPMAN Frustrated Over NNPCL Portal Closure
• Depot Owners Await Price Clarification for Dangote Refinery Products”
A disagreement has surfaced between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery regarding the pricing of petrol supplied by the refinery. This dispute arose following NNPCL’s initial lifting of petrol from the Dangote Refinery.
NNPCL disclosed that it acquired the first supply at a rate of N898 per litre. However, Dangote Refinery quickly refuted this, stating that no final agreement on the pricing had been established.
According to Dangote, the N898 per litre price reflects the fact that the crude oil used for refining was imported and, therefore, the price was based on dollar equivalence.
In a statement issued by Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote, the company described NNPCL’s pricing claims as “misleading and mischievous.” Chiejina added, “Our attention has been drawn to the NNPCL’s statement on the pricing, which does not reflect the actual arrangement. We urge the public to await the outcome of the Technical Sub-Committee on Naira-based crude sales, which is expected to finalize pricing decisions by October 1, 2024.”
Fuel Supply Shortfall and Implications
While Dangote had initially planned to supply 25 million litres of petrol to NNPCL, it could only deliver 16.8 million litres due to unforeseen shortfalls. This is significantly below Nigeria’s current daily fuel consumption, which stands at 44.3 million litres, a 33.58% reduction from the previous 66.7 million litres daily consumption.
NNPCL confirmed receiving the 16.8 million litres at the N898 per litre rate, with over 70 trucks already loaded to transport the product. The delivery is part of a “naira for crude” initiative, allowing local refineries to purchase petroleum products in naira while acquiring crude oil.
Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, affirmed: “We received 16.8 million litres today at the agreed price of N898 per litre. There is no truth to claims of any higher prices.”
NNPC Portal Closure: IPMAN’s Frustration
In a related development, independent oil marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed frustration over the continued closure of NNPCL’s retail portal. This closure has denied them access to petrol sourced from Dangote Refinery. According to IPMAN’s Public Relations Officer, Chinedu Ukadike, “While we are pleased with Dangote’s commencement of supply, we hope to gain direct access to the refinery’s product as we control the majority of filling stations nationwide.”
The situation has left marketers waiting for the reopening of NNPCL’s portal, through which they can secure their allocations.
Depot Owners Await Price Clarifications
Depot owners, under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), have also shown interest in lifting petrol from the Dangote Refinery. However, they remain on standby for clearer details regarding the pricing mechanism. According to DAPPMAN Executive Secretary, Olufemi Adewole, “Once we receive clarity on the pricing, we are ready to commence lifting to meet Nigeria’s energy needs.”
Dangote Refinery Committed to Meeting Domestic and Export Demands
Devakumar Edwin, Vice President of Dangote Industries, emphasized the refinery’s capacity to satisfy Nigeria’s petrol demand while also producing excess for export. “The Dangote Refinery, with a 650,000 barrels per day capacity, will not only meet local demand but also generate foreign exchange through exports. This is a significant milestone for Nigeria’s energy independence,” he said.
Edwin further noted that 44% of the refinery’s output would be dedicated to the Nigerian market, while the remaining 56% would be exported, thereby positioning the refinery as a major player in the global petroleum market.
Lagos Government Implements E-Call Up System
In another development, the Lagos State Government has announced the implementation of an electronic call-up system to manage truck traffic along the Lekki-Epe corridor. This initiative, set to begin next week, aims to alleviate congestion caused by trucks serving the Dangote Refinery and other industries within the Free Trade Zone.
Seun Osiyemi, the state’s Commissioner for Transport, stated that the system is designed to synchronize truck movements and prevent gridlock. He added, “The e-call up system will ensure smooth movement of goods and services within this critical economic hub, enhancing both state and national development.”
The efficient management of this corridor is crucial for Nigeria’s economy, given the strategic importance of the Lekki Free Trade Zone, which houses major investments like the Dangote Refinery and Lekki Deep Sea Port.
