By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has confirmed that petrol from the Dangote Refinery will begin circulating in the market starting September 15, 2024. In a statement issued by the company’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja, NNPCL highlighted that the pricing of Premium Motor Spirit (PMS) would be dictated by market forces, marking a shift in the downstream sector.
This follows the recent commencement of petrol refining at the Dangote Refinery. NNPCL’s Executive Vice President of Downstream, Adedapo Segun, emphasized that the deregulation of the downstream sector means the company will no longer fix prices. Segun’s comments quashed rumors that NNPCL would continue to regulate prices, despite the government’s announcement of deregulation.
“The Nigerian National Petroleum Company Limited has clarified that forex illiquidity has significantly impacted PMS price fluctuations, which are now driven by free market forces as outlined in the Petroleum Industry Act (PIA),” the statement noted.
Segun also addressed the current fuel scarcity, assuring that the situation would ease in a few days as more fuel stations recalibrate and resume PMS sales. He reiterated that Section 205 of the PIA enshrines that petroleum prices are set by the market, and exchange rates are a key factor in determining these prices.
Regarding the lifting of PMS from the Dangote Refinery, Segun confirmed that NNPCL was prepared for the September 15 timeline set by the refinery. He acknowledged the fuel shortage’s challenges, stating, “NNPCL is working with marketers to ensure filling stations nationwide remain operational with adequate fuel supply.”
The Federal Government had earlier announced a massive supply of petrol following vessel offloading but ruled out any price regulation.
NNPCL Supplies Crude Oil to Dangote Refinery
NNPCL further revealed that it has supplied 30 million barrels of crude oil to the Dangote Refinery, with plans to deliver an additional 17 million barrels. The company expects to supply 6.3 million barrels in September and 11.3 million in October.
Segun raised concerns that the current petrol pump price does not reflect market realities, noting that NNPCL remains the sole importer of PMS, a situation he described as “abnormal.”
He explained that NNPCL’s dominant role in petrol imports was not intentional but a response to market conditions. “We didn’t position ourselves as sole importers. We stepped in when others reduced their participation,” Segun stated, adding that a stable supply and pricing structure would depend on a more liquid foreign exchange market.
He concluded by saying, “Once the Dangote Refinery starts rolling out PMS and NNPCL begins lifting, further details will be communicated.”
