Energy Group Cautions NNPCL against Cutting Crude Oil Supply to Dangote, Other Local Refineries
- The Energy Reforms Advocates of Nigeria (ERAN) raised concerns over an alleged plan by the NNPCL to reduce crude oil supply to the Dangote Refinery and other local refineries
- ERAN said the alleged plan could force the facilities to operate below capacity, undermining their ability to meet domestic demand
- The group, therefore, called on the federal government to take immediate action to prevent the reduction and ensure the NNPCL's operations are subjected to independent audits
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Abuja, FCT - The Energy Reforms Advocates of Nigeria (ERAN) has raised the alarm over an alleged plan by the Nigerian National Petroleum Company Limited (NNPCL) to cut the supply of crude oil to the Dangote Refinery and other local refineries.
According to ERAN, led by Daniel Clarke, the alleged plan to cut crude oil supply could force the facility to operate below capacity and undermine its ability to meet domestic demand.
Source: Getty Images
ERAN: What will happen if NNPCL cuts crude supply to Dangote
Clarke, who spoke at a press conference in Abuja, said this would increase reliance on fuel imports, higher costs, and a return to the dreaded fuel queues.
Legit.ng gathers that ERAN's press conference follows a report by The Punch, which stated that the federal government may cut its crude oil supply to the Dangote Petroleum Refinery, reducing it from the current allocation of 300,000 barrels per day, except if there is a surge in Nigeria’s oil output.
The report added that the reduction is expected to take place as part of adjustments under the government’s naira-for-crude initiative following the coming onstream of the Warri and Port Harcourt refineries.
“It is clear that crude allocation to Dangote refinery and other local refineries will be reduced because all our refineries are coming back. Old Port Harcourt is working. New Port Harcourt is almost done. Warri just joined last week," The Punch quoted a source as saying.
However, ERAN said such a move would hinder Nigeria's quest for energy self-sufficiency.
"The recent news that NNPCL may cut crude oil supply to the Dangote Refinery and other local refineries is a cause for alarm. This decision, if implemented, would be patently unjustifiable and strategically detrimental to the refinery’s operational efficacy, thereby subverting Nigeria’s quest for energy self-sufficiency," ERAN said in a statement sent to Legit.ng on Sunday, January 5.
ERAN asks FG to take action
ERAN has called on the federal government to take immediate action to prevent any reduction in crude allocation to the Dangote Refinery and other local refineries.
The group also demanded that the NNPCL's operations be subjected to independent audits to ensure accountability.
ERAN hails Dangote Refinery over reduction of fuel price
Meanwhile, ERAN has praised the Dangote Refinery's recent decision to lower fuel prices during the Yuletide season, describing it as a bold statement of its commitment to Nigerians.
Clarke said the refinery's move shows its strong love for the people in easing the economic burden and strain.
Petrol price may crash as marketers partner with Dangote
In another report, more fuel marketers are partnering with the Dangote Refinery to guarantee Nigerians a consistent supply of petroleum products at reasonable costs.
A few weeks following the strategic partnership with MRS Oil Nigeria Plc, which allowed the company to sell fuel at a lower price than competitors, more petroleum marketers have continued to enter into agreements with the refining giant to increase sales and drive down prices.
Numerous petroleum marketers are considering signing a strategic agreement with Dangote Refinery to gain market dominance.
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Source: Legit.ng
