Dangote Refinery has confirmed that NNPC is yet to begin lifting petrol at the facility since both sides are still negotiating conditions.
Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, said in a statement on Thursday that the corporation is unable to determine petrol prices because the sector is regulated.
He disputed media reports that NNPC has begun extracting petrol from the facility. “We would like to highlight that NNPC has not started lifting refined Premium Motor Spirit (PMS), also known as petrol, from our Dangote Petroleum Refinery.
“As a result, the question of determining the price of petrol removed from our refinery does not arise, as we have yet to finalise our contract with NNPC.
“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities” .
He asked the people to dismiss the stories because they are misleading and do not reflect the true position in this matter.”
“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.
” Meanwhile, NNPC Limited announced that approximately 17.6 million barrels of crude oil will be transported to the Dangote Petroleum Refinery between September and October.
Adedapo Segun, Executive Vice-President, Downstream, NNPC, stated in a national television interview on Thursday that the move is part of the federal government’s effort to boost local petroleum product manufacturing.
“To date, we have supplied Dangote with around 30 million barrels. We will deliver 6.3 million this month, and 11.3 million in October,” he said.
In Essence
The ongoing contract negotiations between Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC) highlight the complexities of the petroleum industry in Nigeria, particularly during a time of significant changes in the sector.
The fact that NNPC has not yet begun lifting petrol from the Dangote facility suggests that both parties are working through the final details of their agreement, including pricing mechanisms and supply logistics.
From a strategic standpoint, this development signals a cautious approach by both sides, as they navigate the regulatory environment and aim to ensure a smooth and mutually beneficial partnership.
Dangote Refinery’s emphasis on the fact that petrol prices are regulated by the government also serves as a reminder that despite the country’s moves toward deregulation and increased local production, certain aspects of the fuel market remain under government control.
