The Nigerian National Petroleum Company Limited (NNPCL) is encountering obstacles that may prevent it from lifting Premium Motor Spirit (PMS) from the Dangote Refinery by the previously announced date of September 15, 2024.
This development has raised concerns about the future of Nigeria's fuel supply chain. According to sources familiar with the situation, NNPCL and Dangote Refinery have yet to finalize agreements on the quantity and pricing of PMS.
Despite an earlier announcement by Adedapo Segun, NNPCL's Executive Vice President of Downstream, stating that the company would begin lifting petrol from Dangote Refinery by mid-September, a concrete deal remains elusive. "There is no arrangement to lift petrol from Dangote on 15 September 2024," a government source disclosed anonymously.
This statement shows the ongoing negotiations and unresolved issues between the two entities.
The NNPCL has indicated that it will only fully offtake PMS from Dangote Refinery if market prices exceed domestic pump prices.
This stance adds another layer of complexity to the already intricate negotiations. Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria, provided additional insight into the pricing dynamics. "There’s no way his [Dangote's] fuel will be too expensive if all the other concessions the government has arranged come to bear. So, if those come to bear, definitely his prices will be cheaper," Idoko explained.
Efforts to confirm these developments with NNPCL’s Spokesperson, Olufemi Soneye, have not yet yielded results as of the time of filing this report.
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