•N898 per litre based on crude imported in dollars — DANGOTE
•NNPC lifts 16.8m litres out of 25m
The Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery yesterday disagreed over the pricing of the petrol to be supplied by the refinery.
The disagreement came against the backdrop of the first lifting of the product from the refinery by NNPCL yesterday.
Although NNPCL got the first supply at N898 per litre, Dangote said the price was not reflective of any agreement on the pricing of its product.
Dangote argued that it sold the initial supplies for N898 per litre because the crude was imported for refining, hence it was selling at dollar equivalence.
In a statement by Anthony Chiejina, Group Chief Branding and Communications Officer, Dangote described the claims by NNPCL that it got the product for N898 per litre as “misleading and mischievous”.
Mr. Olufemi Soneye, Chief Corporate Communications Officer, NNPC Limited, was earlier reported to have said it bought the product at N898 per litre, in contradiction to reports that it was sold to it N766 per litre.“Clarifying this, Dangote said: “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per f to the NNPCL.““This statement is both misleading and mischievous, deliberately aimed at undermining“the milestone achievement recorded today, September 15, 2024, towards addressing“energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.
““We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude“sales to local refineries, appointed by President Bola Ahmed Tinubu which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.““It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every“local government area of the country regardless of their remote nature.““We assure Nigerians of availability of quality petroleum product and putting an end to the“endemic fuel scarcity in the country.”
Meanwhile, there were indications yesterday that Nigeria’s fuel shortage may linger due to a 38.8per cent shortfall in the first delivery of premium motor spirit, PMS, from Dangote Refinery to the NNPCL.
This is because the 650,000 barrels per day, bpd, refinery was scheduled to deliver 25 million litres of petrol to NNPCL but could only deliver 16.8 million litres for now.
Recalled that the Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had said that Nigeria’s domestic petrol consumption has dropped by 33.58 per cent to 44.3 million litres per day, from 66.7 million litres per day.
This indicates that the 16.8 million litres would be grossly inadequate for domestic consumption.
In a letter communicating the shortfall to the NNPCL, Dangote refinery, stated: “This is to formally notify you of the release of Twelve Thousand, Two hundred Metric Tons (12,200 MT) of Premium Motor Spirit (PMS) from Tank No.3201D at Dangote Petroleum Refinery and Petrochemicals, Lekki Free Trade Zone, Ibeju Lekki to Messrs. NNPC Trading Limited to be loaded via road trucks.”
To facilitate distribution, the NNPCL has mobilized over 300 trucks to transport the fuel from the refinery and also berthed a vessel for same.
It was gathered that the NNPCL had issued a Letter of Credit (LC Ref SBLCxxxxT0083) for over $120 million to cover the initial supply of 25 million litres before being informed by the Dangote refinery that it won’t be able to deliver as planned.
Vanguard has learned that the price of PMS from the Dangote Refinery for this initial loading is at N898 per liter.
The fuel lifting is part of a “naira for crude” arrangement, whereby crude oil is sold to local refineries and petroleum products are purchased in naira.
We are lifting 16.8 million litres at N898 per litre – NNPCL
Confirming the development, yesterday, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said: “We successfully loaded PMS today (yesterday) at the Dangote Refinery. The report stating that we purchased it at N1, 300 per litre is false.
“For this initial loading, the price was N898 per litre. I can also confirm, in response to your inquiry, that we will receive 16.8 million litres. As of now, 4.09PM (Sunday) we have loaded over 70 trucks.”
Similarly, the Executive Vice President (Downstream) of the NNPCL, Dapo Segun, pledged the commitment of the NNPCL to the deal, saying: “As a shareholder in the Dangote refinery with 7.25 per cent interest, we are committed to the lifting of product.
“We are running a business. Dangote is running a business. I can tell you there’s nothing unfair going on. Everything that’s going on is according to the terms and conditions signed by both parties, and that is the way business should be done.”
NNPC portal closure denies us access to Dangote petrol — Oil marketers
Meanwhile, the Independent Petroleum Marketers Association of Nigeria, IPMAN, has lamented that the continued closure of NNPCL’s Retail portal meant they would not be able to get access to petrol supplied by the Dangote Refinery through NNPC Limited.
An agreement between the Federal Government and the Dangote Refinery last Friday made NNPCL the sole off-taker of Dangote petrol, with other marketers expected to get their allocations from NNPC.
This, according to government sources, is to ensure that Nigerians do not pay much higher price for PMS.
But speaking to Vanguard yesterday, the Public Relations Officer of IPMAN, Chief Chinedu Ukadike, said: “We are happy that Dangote’s supply has commenced and we have another source of petroleum product supply. We are also not against the policy of selling the product to NNPC.
“But the independent marketers are saying we also want the refinery to deal directly with us.
We have the highest number of filling stations and will be the best partners for the refinery. We are waiting to hear from NNPC. We are still waiting for their portal to open, so we can make purchases.”
On his part, the Chairman, Lagos Chapter of the Petroleum Products Retail Outlets Owners Association, PETROAN, Joseph Ehimen, said: “We are all waiting for Dangote refinery petrol. We need to see the product at the market place. We need to know the price. We do not want the price to be fixed by anyone. Let the market forces determine the price.
“It should be noted that other investors would be encouraged to do businesses in the sector when prices are not pegged. We need more investors to step up investments in the sector in order to stimulate lasting growth. No single public or private single investor can do it alone.”
We look forward to lifting if price is right — Depot owners
Also, Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Olufemi Adewole, said: “We have been lifting diesel (AGO) and aviation fuel (Jet fuel) and we look forward to lifting petrol (PMS).
“We await clarity in respect of the pricing mode and once that is clarified, we’ll do the needful towards meeting the energy needs of Nigerians.”
Dangote refinery to meet domestic demand, export — Edwin
In an interview with the media, yesterday, the Vice President, Dangote Industries Limited, Devakumar Edwin, said: “Fifty two years ago, we were trying to see how to solve the problem of PMS supply and the queues. Now, after 52 years, we have a solution.
‘’The solution is local production and it is from a Nigerian owned company. It was constructed by a Nigerian company.
“So, it is a matter of great pride that a Nigerian-owned company, constructed by a Nigerian owned company, is able to refine PMS from the local crude and deliver not only to meet the entire requirements of Nigeria but we can also have surplus to export.
“It is time and a moment of great pride for every Nigerian. Every day with 650,000 barrels of crude, we can generate more than 54 million litres of PMS. The refinery has a capacity to produce various other products too.
‘’Also, 44% of the production can meet the entire requirements of the country, while 56% of the production has to be exported.
“It is not only going to be impacting in terms of import substitution alone, but also going to generate forex through export. At a go, we can load 86 trucks. We dedicate 40 gantries to PMS alone.”
Dangote refinery petrol supply to NNPC’ll eliminate queues – Otedola
Reacting to the lifting of petrol from the refinery yesterday, billionaire businessman, Femi Otedola, the owner of Zenon Petroleum, said the lifting of fuel from the refinery by NNPCL will eliminate queues at retail stations.
Otedola in a post on X, said: “Kudos to President Tinubu for making this a reality! Fuel queues are now a thing of the past as Dangote Refinery starts loading PMS today (yesterday), Sunday, September 15, 2024.”
LASG begins implementation of E-call up on Lekki – Epe port corridor
Meanwhile, in a bid to avert severe congestion by articulated trucks and improve the efficient logistics operations within the Lekki-Epe Free Trade Zone corridor, Lagos State government has announced the commencement of the e-call up system to manage truck movements within the axis from next week.
The commencement date, according to a statement signed by Mrs Bolanle Ogunlolu, Deputy Director, Public Affairs at the Lagos State Ministry of Transport, was earlier extended on stakeholders request to give adequate room for full compliance.
The Commissioner for Transport, Seun Osiyemi, disclosed that the e-call up system was ready for implementation for a sustainable, effective and technology-driven solution of truck movement in the Lekki-Epe corridor.
Osiyemi explained that the application of e-call up system would help synchronize movement of trucks accessing the Lekki Deep Seaport and other industries within the corridor, starting from Eleko junction to Lekki Free Trade Zone.
Highlighting the state and federal government’s plans on road network expansion and inter-modal transport systems to streamline vehicular traffic and enhance free movement in one of Lagos’ most critical economic zones, the commissioner opined that the e-call system would control the corridor.
Osiyemi said: “The e-call up system, an advanced digital platform, is designed to regulate the entry and exit of trucks in the Lekki-Epe area by scheduling and coordinating their movements.
‘’This system will help prevent the chaotic traffic situations often caused by the indiscriminate parking and movement of trucks within the corridor.
“The Lekki-Epe corridor, a key economic hub in Lagos, is home to numerous industries, including the Lekki Free Trade Zone, the Dangote Refinery, and the Lekki Deep Sea Port.
‘’The efficient movement of goods and services in this area is crucial for the state’s economy, making the e-call up system an essential tool for sustainable development.”
Also speaking on the development, the Special Adviser to the Governor on Transportation, Sola Giwa, who is saddled with the enforcement of the e-call up system, said an interim arrangement was being put in place to decongest the roads through evacuation of all illegal tankers from the red zone by a joint TASKFORCE of the state, local government areas/local community development areas, LCDAs, security agencies and stakeholders.
Giwa urged truck operators and logistics companies to comply with the new system to ensure its success.
VANGUARD
