The Nigerian National Petroleum Company (NNPC) Limited is set to become the “initial exclusive buyer” of products from the Dangote Refinery as the 650,000 barrel per day plant begins processing of premium motor spirit (PMS) also known as petroleum, report has indicated.
This is coming amidst the worsening fuel supply in Nigeria with the NNPCL indicating that the supply gap might get worse following its indebtedness to importers.
After several denials, the national oil company admitted on Sunday that it was facing financial difficulty with a report indicating that the company is owing over $6billion.
This came about a week after the NNPCL published its 2023 audited financial statement and declared a dividend of N3.1trillion.
Fuel supply has been impaired nationwide with most NNPCL retail outlets under lock and key while motorists pay as much as N1000 per litre across the country.
However, a report by Reuters yesterday confirmed that the Dangote refinery is ready to roll out petrol in the coming weeks as testing has begun while NNPC is expected to be the “initial exclusive buyer” – a move projected to address the supply gap which the national oil company is contending with in recent times.
The vice president at Dangote Industries Limited, Devakumar Edwin, who was quoted by Reuters also indicated that the national oil company is prepared to purchase its products exclusively to meet local demands.
“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.
When contacted yesterday, the NNPC Chief Corporate Communications Officer, Mr. Olufemi Soneye said he was not aware of the deal with Dangote.
“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?
But fuel scarcity has worsened in Abuja, Lagos and other parts of the country with a litre selling as much as N1000.
In Abuja, both travellers and motorists have continued to groan over the worsening scarcity.
Daily Trust findings showed that filing stations of both the independent and major oil marketers within Abuja city and some area councils of the FCT have remained closed without fuel.
A visit by our reporter to some filling stations, especially where fuel is being dispensed indicated a long queue of vehicles and motorcycles waiting to buy fuel.
At AA Rano filling station, along Kubwa expressway, there is a long queue of vehicles waiting to refill their tanks, even as some motorists were seen with gallons struggling to buy the fuel.
Also at Enyo filling station in Zuba, Gwagwalada Area Council, one of the satellite towns in the FCT, our reporter observed a long queue of vehicles and motorcycles waiting to refill their tanks.
It was observed that despite the long queue, a litre of fuel is sold between N980 and N1, 200, even as some filling stations have remained closed.
At Doma filling station, which is located along Secretariat road in Gwagwalada metropolis, there was also a long queue of vehicles and motorcycles, even as our reporter also observed a litre of PMS is sold at N987 per litre.
However, some motorists, who spoke with one of our reporters, expressed their frustration over the fuel scarcity which they said has posed serious hardship to them.
Our reporter further observed that the fuel scarcity and increase in transport fare has forced many residents, especially civil servants , to trek within the city center of Abuja while some even trekked to their work places.
A commercial driver, Mr Clement Azuibuke, who spoke with our reporter, said the fuel scarcity has forced him to park his car at home.
Another motorist, Samson Kaura, who is also a commercial driver that shuttles between Gwagwalada to Garki Area 1, said the continued fuel scarcity in Abuja and its environs has caused more hardships on people especially civil servants, saying 85 per cent of civil servants were forced to abandon their vehicles at home.
A director of one of the petrol stations, Alhaji Yahuza Abdullahi, blamed the NNPCL for the lingering fuel scarcity in Abuja and its environs.
However, despite the long queues at almost all NNPC filling stations, one of our correspondents reported that there is no increase in fuel prices as a litre is still sold at N617 while non-NNPC stations sell the product between N700 to N720 per litre.
The stations visited included, Rain Oil, Amaded, AA Rano, and Nipco in Gwarimpa and along Airport Road in Lugbe.
Kasim Atiku, a commercial motorist, told our reporter that he had spent hours on the queue at an NNPC filling station in Gwarimpa.
Another motorist who spoke to our reporter on the phone, Sani Funtua lamented the impact of the fuel scarcity on his taxiing business.
In Lagos, the worsening scarcity has forced motorists to increase intrastate transportation fare amidst shortage of buses during the peak of the day, forcing drivers to hike transportation.
A commuter, who identified herself as Victoria, expressed concerns over the hike of transport fares, saying fare from Kola to Igando has increased by over 100 percent.
Checks by our correspondent indicated that most NNPC filling stations were not dispensing while there was gridlock at some major filling stations dispensing yesterday.
It was observed that all the three NNPC stations along Ogunnusi Road connecting the Lagos-Ibadan expressway were not dispensing.
And due to the gridlock at a few stations dispensing, officers of the Nigeria Police, Lagos command and the Lagos State Traffic Management Authority (LASTMA) have extended their services daily to filling stations congested with long queues in Lagos.
Daily Trust observed the presence of the joint officers at Total and Northwest fillings station along Mobolaji Bank-Anthony expressway, MRS in Ikeja and few other places.
‘We are working with stakeholders to arrest the scarcity’
Speaking further with our correspondent, Soneye who reiterated that the NNPC is working with relevant stakeholders to arrest the fuel shortage said, “I think the important thing for us on our own part is to let the whole world know that we are in trouble if we continue. NNPC has been paying N500 per litre for every Nigerian that has been buying fuel within the past one year.”
“So, the truth of the matter is that Nigerians have been getting cheap fuel because the NNPC is doing something for them. NNPC has been bearing the shortfall and it is now unbearable. The landing cost is N1,100, that shortfall is what we have been bearing.”
He stated that it is now left for the owners of the NNPC and the federal government to decide the next line of action(Daily Trust)
