Fresh Dispute Emerges Over Supply Volume Between NNPCL, Dangote Refinery

A new controversy has erupted between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over the supply volume of premium motor spirit (PMS), commonly known as petrol, in their ongoing sale-purchase agreement.

According to sources, NNPCL claims that Dangote has been unable to supply sufficient quantities of petrol as agreed. However, Dangote Refinery refuted these claims, stating it has already delivered 111 million litres of petrol over a three-day period, with continuous loading operations. NNPCL, on the other hand, had earlier stated that Dangote could only supply 16.8 million litres out of the agreed 25 million litres.

The tension comes as NNPCL recently intensified its petrol importation efforts, with over 135 million litres arriving in Nigeria between late September and early October 2024. Several vessels, including Mia Grace, Valle Azzurra, and Clean Justice, have been identified as bringing in substantial quantities of imported fuel.

Despite Dangote’s assertion that its refinery can help eliminate the need for imports, NNPCL has continued to bring in petrol shipments, raising questions about whether the country is facing an oversupply issue just days after widespread shortages led to price hikes.

Efforts to reach NNPCL for comment were unsuccessful, but in an earlier statement, the company claimed that only 16.8 million litres of petrol were ready for distribution from Dangote Refinery.

Meanwhile, NNPCL’s Executive Vice President of Downstream, Adedapo Segun, explained that oil marketers are struggling to import petrol due to market conditions, which make it unprofitable. Segun noted that while marketers are licensed to import various petroleum products, they often avoid importing petrol because it is still sold below cost. He also clarified that NNPCL remains the main off-taker from Dangote Refinery because marketers are unwilling to purchase at the market price.

As this situation unfolds, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), has called on the government to provide welfare packages to ease the burden on Nigerians. He warned that the recent fuel price increases have worsened inflation and negatively impacted citizens, many of whom are now forced to walk long distances due to the cost of transportation.