NNPC Gives Nigerians Hope, Speaks on Petrol Scarcity, Pump Price Increase
- The Nigerian National Petroleum Company Limited (NNPC) has disclosed why there is a persistent petrol scarcity
- The company’s vice president of Downstream Operations, Dapo Segun, said the scarcity is caused by FX liquidity and distribution challenges
- Segun, who did not provide specific dates the scarcity will end, said the company is working hard to restore normalcy in the system
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPCL) disclosed on Thursday, September 5, 2024, that it was working hard to resolve the country's current petrol scarcity.
NNPC’s vice president of Downstream Operations, Dapo Segun, blamed the shortages on forex liquidity, distribution challenges, and the need to balance imports with existing debts.
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No date yet to end scarcity
He did not provide a specific date for ending the petrol scarcity, which has caused long queues at filling stations.
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He disclosed this during an interview on Arise Television, stating that the company faces challenges in distributing fuel efficiently due to FX scarcity.
He disclosed that the company’s mounting debts add to the challenges, insisting that NNPC has a good business relationship with all its foreign customers.
NNPC supplies 30m crude barrels to Dangote
According to ThisDay, the NNPC has supplied the Dangote Petroleum Refinery with 30 million barrels of crude oil in the past, with 17.6 million barrels to be made available in the coming months.
He cited section 205 of the Petroleum Industry Act (PIA), which states that unrestricted market conditions should determine prices.
On another television programme, he explained that the company was waiting for the September 15 deadline given by the Dangote Refinery to commence product lifting.
NNPC has begun lifting products from Dangote
A previous report by Legit.ng disclosed that the Dangote Refinery stated a report alleging that the Nigerian NNPC had already started lifting from its facility in Lagos.
The company revealed this in a statement signed by Anthony Chiejine, the company’s Group Chief Branding and Communications Officer.
NNPC has not fixed prices of Dangote petrol
According to the statement, the NNPC has yet to commence product lifting at the refinery, let alone setting a price, stating that the PMS market is heavily regulated.
The refinery stated that it cannot determine, fix, or influence the product price, which falls under the purview of relevant government agencies.
The development comes amid the NNPC's increase in the petrol pump price, which has caused outrage among Nigerians in the last few days.
The NNPC said in an official statement on Thursday, September 2024, that market forces determine petrol prices.
Dangote Refinery launches new petrol-grade
Legit.ng earlier reported that Aliko Dangote, president of Dangote Industries Limited, has said that with the rollout of the PMS from the Dangote Petroleum Refinery, Nigerians will understand their fuel consumption for the first time.
The petrol production from the 650,000bpd-capacity refinery comes 28 years after Africa’s largest oil producer stopped PMS production from its three moribund refineries.
Dangote stated that the new petrol would improve everyone's health and ensure that Nigerians know there is a consistent supply to the market.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
