The Nigerian National Petroleum Company (NNPC) Limited is set to become the exclusive buyer of products from the Dangote Refinery as the 650,000 barrel per day plant begins processing of premium motor spirit (PMS). This comes amidst the worsening fuel supply in Nigeria, with the NNPCL indicating that the supply gap might get worse due to its indebtedness to importers.
The Dangote refinery is ready to roll out petrol in the coming weeks, with testing having begun. NNPC is expected to be the “initial exclusive buyer” to meet local demands. However, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, denied knowledge of the deal with Dangote.
The fuel scarcity has worsened in Abuja, Lagos, and other parts of the country, with a litre selling as much as N1000. Motorists and travelers are groaning over the scarcity, with long queues at filling stations. The NNPC has attributed the scarcity to its financial difficulty, with a report indicating that the company owes over $6 billion.
The NNPC has been paying N500 per litre for every Nigerian buying fuel within the past year, bearing the shortfall. However, the landing cost is N1,100, and the company can no longer bear the shortfall. The federal government and NNPC owners need to decide on the next line of action.
The fuel scarcity has caused hardship, with commuters forced to trek due to increased transport fares. The NNPC is working with stakeholders to address the shortage, but the situation remains dire.
