Business

NNPC’s Plan to Get Petrol from Dangote Refinery in Doubt as Key Details Still Missing

Published by admin on September 11th, 2024.

NNPC’s Plan to Get Petrol from Dangote Refinery in Doubt as Key Details Still Missing

Aliko Dangote

As the September 15, 2024, date approaches for the Nigerian National Petroleum Company Limited (NNPC) to start lifting petrol from the Dangote Refinery, recent investigations by The PUNCH reveal that no commercial agreement has been finalized between the two parties.

Sources from both NNPC and Dangote confirmed on Tuesday that discussions about the quantity and pricing of Premium Motor Spirit (PMS) remain unresolved. Adedapo Segun, NNPC’s Executive Vice President of Downstream, had previously announced the planned lifting date during a television broadcast, noting that factors such as foreign exchange rates and market forces would impact petrol pricing due to market deregulation.

However, government sources indicated that no formal agreement has been signed for the petrol lift, suggesting that the deal’s terms and conditions are still under negotiation. A senior official at the Dangote refinery, speaking anonymously, stated that there has been no documentation or formal communication about the planned lift, and that discussions on pricing and other commercial terms are still pending.

The official explained that for the lifting process to proceed smoothly, there must be thorough discussions and legal agreements on pricing and other contractual terms. The standard procedure involves importing products, storing them in terminals, and then distributing them through marketers.

An official from the Federal Ministry of Petroleum Resources confirmed that no definitive agreements are in place yet, but the negotiation process is ongoing. Dan Kunle, a business adviser with extensive experience in Nigeria’s oil and gas sectors, has called on President Bola Tinubu to address the issues impacting petrol supply, which are exacerbating the country’s socioeconomic challenges.

The spokesperson for NNPC, Olufemi Soneye, had not responded to inquiries on the matter by the time of this report.

In related news, the Crude Oil Refiners Association of Nigeria (CORAN) suggested that Dangote’s petrol could potentially be cheaper if the Federal Government provides the necessary concessions. CORAN’s Publicity Secretary, Eche Idoko, assured that if government promises are fulfilled, Dangote’s petrol could be more affordable than current market prices.