On Tuesday, a number of NNPC and Dangote sources verified that the two oil companies were still unable to agree on the quantity and cost of PMS that the national oil corporation would lift.
In a live television broadcast on September 5, 2024, NNPC’s Executive Vice President of Downstream, Adedapo Segun, announced that the firm would remove Dangote gasoline on September 15.
In addition, he listed the variables that would affect the commodity’s price, emphasizing that the deregulated market would affect the price of gasoline due to market forces and foreign exchange rates.
However, on Tuesday, government sources with knowledge of the situation said that no documentation had been signed by either party authorizing NNPC to begin removing gasoline from the $20 billion Dangote refinery on September 15.
They emphasized that the national oil corporation may not lift any gasoline from Dangote on the scheduled date and said that the terms and circumstances necessary for the contract had not been agreed upon.
When asked if arrangements had been made for NNPC to stop selling Dangote gasoline on September 15, 2024, a senior official at the refinery—who spoke to one of our correspondents in confidence because they were not authorized to speak on the subject—said that nothing had been decided regarding price or the removal of Dangote gasoline, among other things.
There is currently no product lifting documentation available from NNPC or NMDPRA (the Nigerian Midstream and Downstream Petroleum Regulatory Authority). We have not heard from anyone expressing a desire to start PMS on September 15.
“There must be negotiations on pricing and other matters, which is the commercial engagement, before you can come and select stuff in five days. The source said, “Of course, there has to be an offer and other things; the lawyers will set up the terms and conditions.”
“It will be through the same way that products are imported and put in terminals before being lifted by marketers for distribution across the country,” the official said when asked how PMS from the Dangote refinery might be hoisted.
The Dangote source’s assertion was supported by another Federal Minister of Petroleum Resources official, who said that “nothing concrete has been agreed on right now in terms of petrol lifting, but I believe the process is still ongoing.”
The Dangote source’s assertion was supported by another Federal Minister of Petroleum Resources official, who said that “nothing concrete has been agreed on right now in terms of petrol lifting, but I believe the process is still ongoing.”
Mr. Dan Kunle, a seasoned business advisor to multiple corporations in Nigeria’s upstream, midstream, and downstream oil and gas sectors, pleaded with President Bola Tinubu to get involved in the situation.
“The President needs to take immediate action to address the concerns raised by the problems with the gasoline supply and how they have been exacerbating the socioeconomic crises throughout the nation,” the advisor said.
As of Tuesday night, when the report was filed, Olufemi Soneye, the NNPC spokesperson, has not responded to any inquiries regarding the situation.
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