Fuel Scarcity: NNPCL To Become First Buyer Of Petrol From Dangote Refinery – Report

The Nigerian National Petroleum Company Limited (NNPCL) is poised to become the primary exclusive purchaser of petrol products from the Dangote Refinery.

This is as the facility which has a capacity of 650,000 barrels per day, commences the processing of premium motor spirit (PMS), commonly referred to as petrol or fuel.

This development occurs against the backdrop of a deteriorating fuel supply situation in Nigeria, with NNPCL suggesting that the supply shortfall may worsen due to its financial obligations to importers.

After previously denying any issues, the national oil company acknowledged on Sunday that it is experiencing financial challenges, with reports indicating that its debts exceed $6 billion.

This acknowledgment follows the recent release of NNPCL’s 2023 audited financial statement, which revealed a dividend declaration of N3.1 trillion.

Fuel scarcity has been significantly affected nationwide, with many NNPCL retail outlets closed, leading motorists to pay as much as N1000 per litre across the country.

Nevertheless, a report from Reuters confirmed yesterday that the Dangote refinery is set to begin petrol distribution in the coming weeks, as testing has commenced.

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NNPC is anticipated to be the initial exclusive buyer, a strategic move aimed at alleviating the supply challenges currently faced by the national oil company.

Devakumar Edwin, the vice president at Dangote Industries Limited, was quoted by Reuters, stating that the national oil company is ready to exclusively procure its products to satisfy local demand.

He said: “We are testing the product (gasoline) and subsequently it will start flowing into the product tanks.

“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said. He, however, did not mention when the product will hit the market.

Reacting to the events when contacted, the NNPC Chief Corporate Communications Officer, Mr. Olufemi Soneye, told journalists that he was not aware of the deal with Dangote Refinery.

“I am not aware of that,” he said, adding that there was no way Dangote would sell below N1000.

“I don’t think marketers would buy at that amount. So, the sure bet is to sell to NNPC but then at what rate will NNPC be buying?

The situation regarding fuel scarcity has significantly deteriorated in Abuja, Lagos, and various other regions of the country, with prices reaching as high as N1000 per litre.

In Abuja, both travelers and motorists are expressing their frustrations over the escalating fuel shortage.

Recent investigations by Daily Trust revealed that many filling stations, operated by both independent and major oil marketers within the city and surrounding area councils of the Federal Capital Territory (FCT), have remained closed and devoid of fuel.

Journalists who visited some of the filling stations, particularly those dispensing fuel, observed extensive queues of vehicles and motorcycles awaiting their turn to purchase fuel.

At the AA Rano filling station along the Kubwa expressway, a long line of vehicles was observed waiting to refuel, while some motorists were seen struggling with gallons to obtain fuel.

Similarly, at the Enyo filling station in Zuba, located in the Gwagwalada Area Council, which is one of the satellite towns in the FCT, our correspondent noted a lengthy queue of vehicles and motorcycles eager to refill their tanks.

Despite the extensive lines, it was noted that the price of fuel per litre ranged from N980 to N1,200, with several filling stations remaining closed.

At the Doma filling station on Secretariat Road in Gwagwalada metropolis, a similar scene unfolded, with a long queue of vehicles and motorcycles, and our correspondent observed that a litre of Premium Motor Spirit (PMS) was being sold at N987.

Several motorists who engaged with one of our reporters conveyed their dissatisfaction regarding the ongoing fuel scarcity, which they indicated has resulted in significant difficulties for them.

The reporter further noted that the fuel shortage, coupled with rising transportation costs, has compelled numerous residents, particularly civil servants, to walk within the central area of Abuja, with some even opting to walk to their workplaces.

Mr. Clement Azuibuke, a commercial driver, shared with our reporter that the fuel scarcity has necessitated him to leave his vehicle at home.

Another motorist, Samson Kaura, who operates as a commercial driver between Gwagwalada and Garki Area 1, remarked that the persistent fuel scarcity in Abuja and its surrounding areas has exacerbated the challenges faced by individuals, especially civil servants, stating that approximately 85 percent of civil servants have been compelled to leave their vehicles at home.

Alhaji Yahuza Abdullahi, a director at one of the petrol stations, attributed the ongoing fuel scarcity in Abuja and its surroundings to the NNPCL.

Despite the extensive queues observed at nearly all NNPC filling stations, one of our correspondents reported that fuel prices have remained stable, with a litre still priced at N617, while non-NNPC stations are selling the product for between N700 and N720 per litre.