Fresh Hurdle Emerges for Dangote Refinery’s Planned Fuel Supply to NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) may miss its scheduled date to lift Premium Motor Spirit (PMS) from the Dangote Refinery by Sunday, September 15, 2024, according to emerging reports. This follows unresolved issues between the two entities over the quantity and pricing of the refined product.

Last week, NNPCL’s Executive Vice President of Downstream, Adedapo Segun, announced on a live TV broadcast that the company was set to commence lifting PMS from Dangote Refinery on the given date. He also emphasized that the price of petrol would be dictated by foreign exchange rates and market forces.

However, sources within the industry have revealed that a formal agreement on the product’s pricing and supply logistics is yet to be finalized between NNPCL and the Dangote Refinery. A government insider, speaking on condition of anonymity, confirmed that no official documentation had been signed by NNPCL or the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding the product lifting.

“As of now, there is no arrangement in place for NNPCL to lift petrol from the Dangote Refinery by the 15th of September,” the source disclosed.

Attempts to get a response from NNPCL spokesperson Olufemi Soneye were unsuccessful at the time of reporting.

This development comes amid NNPCL’s recent statement that it would only fully offtake PMS from Dangote Refinery if market prices exceed current pump prices in Nigeria.

In a related statement, Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria, suggested that Dangote Refinery’s petrol prices could remain competitive if the government follows through on its plan to sell crude oil to domestic refineries in Naira. “If the government’s concessions take effect, there’s no reason Dangote’s fuel will be too expensive,” Idoko said.

As the September 15 date approaches, it remains uncertain whether the two parties can resolve their differences in time to meet the announced deadline.