New Challenge Looms For Dangote Refinery’s Sunday Launch

New Challenge Looms For Dangote Refinery’s Sunday Launch

There are indications that the Nigerian National Petroleum Company Limited (NNPCL) might not be able to lift Premium Motor Spirit (PMS) from Dangote Refinery by the announced date of Sunday, September 15, 2024.

Sources close to the situation reveal that negotiations between the oil firms on the quantity and pricing of the PMS to be lifted have yet to be finalized.

Last week, Adedapo Segun, the Executive Vice President of Downstream at NNPCL, stated on a live television program that the company was scheduled to lift petrol from Dangote Refinery on September 15. He highlighted that the price of petrol is influenced by factors such as foreign exchange rates and market dynamics.

However, with just days remaining until the proposed date, government sources have indicated that no agreement has been reached between NNPCL and Dangote Refinery regarding the lifting of petrol. “As of now, there is no documentation from NNPCL or the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) concerning product lifting from Dangote Refinery,” said the source, who wished to remain anonymous. “There is no arrangement in place to lift petrol from Dangote on September 15, 2024.”

Attempts to verify this information with NNPCL’s spokesperson, Olufemi Soneye, have been unsuccessful as of the time of this report.

NNPCL had previously stated that it would only fully off-take PMS from Dangote Refinery if market prices for the product exceed domestic pump prices.

In related news, Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria, commented that the price of petrol from Dangote Refinery should not be excessively high if the federal government fulfills its commitment to selling crude oil in Naira to domestic refineries. “If all the government’s concessions are implemented, Dangote’s fuel prices will likely be lower,” Idoko noted.