The recent petrol price increase by the Nigerian National Petroleum Company Limited (NNPCL) has brought Nigerians nothing but pain and misery.
Adding to this misery is the frustration that comes with the scarcity of the product.
However, Nigerians are hopeful.
This is because, the NNPC is preparing to lift petrol from the $20 billion Dangote Petroleum Refinery on September 15.
Now, Nigerians are eagerly anticipating relief from the ongoing fuel scarcity.
Indeed, this development will bring an end to the ongoing scarcity in the country, but then, there comes the problem of petrol prices.
Exchange Rates
For the NNPCL the price of Premium Motor Spirit (PMS) will be influenced by factors such as foreign exchange rates and market dynamics, as the market is now fully deregulated.
NNPCL’s Executive Vice President of Downstream, Adedapo Segun noted that market forces would dictate fuel prices moving forward.
This comes as independent oil marketers reported that over 2,000 tankers are still waiting to load fuel at depots in Lagos, Warri, and Port Harcourt.
Also, the government announced that a massive supply of petrol would hit the market over the weekend, with vessels beginning to offload products, though it ruled out fixing petrol prices.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than the government or NNPCL,” Segun explained.
He further revealed that NNPC has already supplied 30 million barrels of crude oil to the Dangote Refinery.
Plans are underway to deliver an additional 17 million barrels in the coming months.
Dangote Refinery
There are speculations that the NNPCL had started lifting petrol from the refinery and was selling at ₦897 per litre.
Well, Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, denied these claims.
He clarified that no refined PMS had been lifted from the refinery yet, and price fixing does not fall under the company’s purview.
However, a Presidency source, who spoke on condition of anonymity because he was not authorized to speak on the matter, told The Punch that Dangote and not the NNPC would determine the price of the product.
The source insisted that the refinery would not sell below the cost price.
According to the source: “It’s a private business, Dangote will determine the price of the product based on market realities.
All Eyes On Dangote
“The Federal Government has already intervened by asking NNPC to sell crude to Dangote in naira.
So far, 30 million barrels of crude oil have been supplied to Dangote.
“Between now and October, Dangote’s refinery will receive 17.8 million barrels of crude from the Federal Government, in addition to the 30 million barrels already supplied.
“The Federal Government stated that going forward crude should be sold to Dangote in naira to alleviate the pressure of seeking foreign exchange.
This also allows him to sell to marketers in naira. How else can the Federal Government intervene?
“Dangote claims that the Federal Government will determine his price, he is being economical with the truth. He certainly will not sell below his cost price.
“The only role of the government as a regulator is to ensure that businessmen like Dangote do not take undue advantage of Nigerians.
The government will also ensure product quality and prevent Dangote from setting arbitrary prices.
By implication, the government will not allow him to set arbitrary prices.”
