The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the commencement of petrol lifting from the Dangote Refinery on Sunday, September 15, 2024, marking a landmark for the nation’s energy sector.
The announcement, which confirmed the deployment of over 100 trucks to the refinery’s fuel loading gantry in Ibeju-Lekki, has generated reactions from Nigerians on X (formerly Twitter), with many expressing optimisms, while others were concerned about the lack of transparency surrounding fuel pricing which is the primary interest of the common man in the oil-rich country.
NNPCL stated: “In preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Ltd. has been mobilizing trucks to the refinery’s fuel loading gantry in Ibeju-Lekki. As of Saturday afternoon, NNPC Ltd. had deployed over 100 trucks, with hundreds more en route.”
Sanusi Dantata, an X user, expressed excitement about the refinery’s potential to revolutionize Nigeria’s fuel supply, stating that Nigerians need both NNPC & Dangote Refinery to succeed, arguing that the commencement marks the beginning of a new era for Energy Security.
His optimism was shared by many who see this development as a potential end to perennial fuel shortages in the country. They believe that if both NNPCL and the Dangote Refinery succeed, it could significantly boost Nigeria’s energy independence.
However, not all reactions were positive. Concerns over pricing transparency were raised by several users.
Hon. Rilwan questioned the lack of clarity surrounding the price at which NNPCL would be lifting petrol from the refinery.
He stressed that the public would appreciate clarity regarding the price at which NNPCL will be lifting the product. “We are anticipating PMS pegged at N200/ltr,” he added.
Similarly, a user ‘Man of the Letters‘, expressed frustration over the secrecy surrounding the pricing structure:
“How much is Dangote Refineries Ltd selling to the NNPCL per litre? What would be the retail price across Nigeria? Why is there so much secrecy around this deal which is a local deal in every sense? Why can’t we have clarity. What’s there to hide?” He enquired.
Concerns Over Monopoly
Nwo Diali, another X user added concerns about NNPCL being the sole buyer of Dangote’s petrol products, fearing a monopolistic arrangement: “NNPC/NNPCL to be the sole buyer of Dangote Fuel (PMS), then sell to independent marketers. That’s monopsony. If this decision will crash the pump price, then it’s okay. All we need is for it to have a positive impact on the economy. Also, we need to know how much Dangote is selling a litre to NNPC.”
Auwal Alhassan echoed similar concerns, accusing NNPCL of monopolizing the fuel supply chain by sidelining the country’s other refineries:
“I have never ever seen a ridiculous system akin to NNPCL. A country with 4 refineries owned by govt and none of them failed to work despite millions of dollars spent, now they hijacked private refinery just to continue subjecting Nigerians into difficult life. It’s a syndicate,” he tweeted.
Marketers Weigh In
Imraan Muhammad shared a statement by Ukadike Chinedu, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), calling for a more inclusive distribution process:
“NNPCL has huge investment in Dangote Refinery. They are giving them the first offer of refusal. They will start with NNPCL, and we’re not against that; however, for us to compete as they are given NNPCL, they should also give us. We will determine our price and sell cheaper.”
The NNPC Ltd has in the last couple of weeks increased the price of petrol from N617/litre to N855 and N897, depending on the location.
Hitherto, Nigerians have continued to face long queues at petrol stations, where many stations across the country either have no fuel to sell or are selling it at higher prices.
The situation led to frustration among Nigerians, who are questioning the reasons behind the scarcity and price hike.
NNPC explained that the fuel scarcity is due to the corporation owing large sums of money, with the debt linked to the high costs of petrol supply, which is affecting the sustainability of fuel availability.
