With just four days remaining before the Nigerian National Petroleum Company Limited (NNPC) is expected to begin lifting Premium Motor Spirit (PMS) from the Dangote Refinery, sources indicate that no commercial agreement has been finalized between both parties. This has raised concerns that the NNPC may not be able to proceed with lifting petrol on the scheduled date of September 15, 2024.
Multiple sources from both NNPC and Dangote confirmed on Tuesday that no agreement had been reached regarding the quantity and pricing of PMS. While the NNPC’s Executive Vice President of Downstream, Adedapo Segun, had previously announced that lifting would begin on September 15, critical details like pricing are still unresolved.
Segun had outlined that the price of petrol would depend on foreign exchange rates and market forces, emphasizing the market’s deregulation. However, on Tuesday, sources revealed that neither NNPC nor the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had provided documentation to Dangote regarding product lifting.
“For NNPC to lift products in just a few days, there must be discussions on pricing and other commercial terms,” said an official from Dangote, indicating that necessary agreements had not yet been reached.
Similarly, a Federal Ministry of Petroleum Resources official corroborated this, stating that the process of negotiation was ongoing, and nothing concrete had been agreed upon.
Experts are urging swift intervention from President Bola Tinubu to address the fuel supply concerns, which are exacerbating socioeconomic challenges across the country. Dan Kunle, a business adviser in the oil sector, called on the president to step in and resolve the lingering issues.
The Crude Oil Refiners Association of Nigeria (CORAN) also reacted to concerns that Dangote Refinery’s petrol might be more expensive once released. CORAN’s Publicity Secretary, Eche Idoko, stated that Dangote’s petrol could be cheaper if the government fulfills its promises, including offering necessary concessions. He emphasized the need for special pricing arrangements for local refining, similar to international practices.
Idoko added that CORAN is planning discussions with Dangote regarding the pricing of PMS and will make public their findings once talks are concluded.
As of Tuesday night, NNPC spokesperson Olufemi Soneye had not responded to inquiries on the status of the agreement.
4o
