Nigerians are facing economic gridlock following Nigerian National Petroleum Company Limited (NNPCL) firm grip to buy fuel from Dangote Refinery at N898 per litre and sell to marketers.
Though some filling stations sell fuel N1350 per litre, others dispense at N1400 while black marketers sell between N1500 and N1600 per litre to customers, economists and analysts predict that by December this year, a litre will go as high as N2,000.
This, according to them, is caused by undue interference and politics of NNPCL in the pricing of the fuel by not allowing Dangote Refinery to sell directly to marketers.
Before now, marketers had eyed Dangote Refinery would sell to them at N766 per litre until NNPCL stepped in and hijacked the fuel price.
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The marketers demanded direct access to Premium Motor Spirit (petrol) from the Dangote refinery, criticising the firm grip of the Nigerian National Petroleum Corporation on the market.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the market should be open for all in line with the willing-buyer and willing-seller commitment earlier made by the corporation.
Already, the oil firm had moved about 300 trucks to the 650,000 capacity refinery in Lagos, on Saturday, and loading commenced on Sunday.
Speaking with Daily Trust over the price of premium motor spirit (PMS), otherwise known as petrol, Chief Spokesperson of the NNPCL, Olufemi Soneye, said, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.”
Soneye said more than 70 trucks had been loaded and shipped out to their different destinations.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, had announced that NNPCL would be the sole off-taker of refined petrol from Dangote Refinery.
At the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, on Friday, the Finance Minister who was represented by Zacch Adedeji, Executive Chairman of Federal Inland Revenue Service (FIRS), had said diesel from the Dangote Refinery would be sold in Naira to any interested off-taker, while PMS would only be sold to NNPCL, which will then sell to various marketers.
He announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.
FEC under the leadership of President Tinubu had approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.
The government explained that the initiative was aimed at reducing pressure on the naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products in the country.
“Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.
“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September. From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.
“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira. Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.
He added that all associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira.
