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Why Dangote Refinery Petrol Is Not Yet Available

Published by Akinwale Fakinlede on September 6th, 2024.

Efforts are underway to address the severe petrol shortage affecting the nation. Despite the Dangote Refinery’s announcement of a product rollout on Tuesday, the promised availability at local pumps did not materialize as expected.

President Bola Ahmed Tinubu, currently on an official visit to China, has directed Vice President Kashim Shettima to lead a meeting involving Minister Heineken Lokpobiri, oil industry leader Mele Kyari, and National Security Adviser Nuhu Ribadu. The petrol scarcity, which has intensified since July, has led to long queues in major cities.

On the day the Dangote Refinery began production, the Nigerian National Petroleum Company (NNPC) Limited adjusted its filling station prices. In Lagos, petrol prices surged from N568 to N855 per litre, and in Abuja, from N617 to N897.

Petroleum regulatory agencies have taken steps to address the situation and have assured the public that petrol will soon become more widely available.

According to a statement from Dangote Refinery’s Group Chief Branding and Communications Officer, Mr. Anthony Chiejina, the refinery has not yet finalized a contract with NNPC and thus cannot set or influence the price of petrol, which is regulated by government authorities.

“We assure Nigerians of high-quality petroleum products that will be widely accessible,” Chiejina stated.

A source revealed that discussions with the government will focus on the production costs, which will influence the final price. Whether the refinery will adhere to the new pricing template announced on Tuesday depends on the cost details provided by Dangote Refineries.

In a television interview, NNPC Ltd.’s Executive Vice President for Downstream, Mr. Adedapo Segun, pointed out that foreign exchange issues have significantly impacted petrol price fluctuations. According to Segun, the Petroleum Industry Act (PIA) 2021 mandates that petrol prices are dictated by market forces rather than government or NNPC Ltd.

Segun anticipated that the fuel scarcity would ease within days as more stations adjust their meters and resume sales. He highlighted that the deregulation of the market means petrol prices are now influenced by market dynamics and exchange rates.

Regarding the timeline for lifting petrol from Dangote Refinery, Segun mentioned that NNPC Ltd. is awaiting the refinery’s September 15 deadline. He also noted that NNPCL is working with station operators to extend operating hours to ensure a steady fuel supply nationwide.