Petroleum Pump price: Who is deceiving Nigerians between NNPCL and Dangote refinery
By:- By -Abba Hamisu Sani and Bala Salihu Dawakin kudu
26-09-2024
Africa-Press – Nigeria. The recent unfoldings between the Nigerian National Petroleum Company PLC and the 20 billion dollars refinery is a source of concern as Nigerians expected the lingering fuel scarcity and high price to become a thing of the past but, the face off that is taking place between the Dangote refinery and NNPC is making the situation worst.
Nigerians have been waiting for the Dangote refinery to start fuel discharge to the market after years of expectations.
The private refinery began operations in 2023 as it was inaugurated by the immediate former President of Nigeria Muhammadu Buhari.
It started with the production of diesel and Jet A 1 for both domestic use and exportation.
The diesel production by Dangote refinery makes the price of the product low compared to the imported product.
The confrontation between NNPCL and Dangote
It is no longer news that the National Petroleum Company -NNPC and Dangote refinery are in cold war over the pump price of the long awaited fuel produced by one of the largest single refineries in the world.
On Sunday 13th September, 2024 Dangote refinery announced that 25 million liters of fuel are ready for distribution to market on a daily basis through the NNPC retail outlets across Nigeria.
But the pump price of the petrol remained unchanged.This situation created so much discord in the minds of Nigerians who have high expectations on Dangote refinery which was expected to be a game changer on the lingering fuel scarcity and high price.
Available news shows that the pump price of petrol will remain unchanged despite the introduction of Dangote product in the market.The initial daily allocation is expected to be 25 million liters, delivered through the NNPC Trading Limited at a cost of 765 to marketers.
“NNPC Trading Limited will continue to import a shortfall of 15 million liters to meet Nigeria’s daily demand for petrol estimated at 40-50 million liters a day”
Each marketer will take a maximum of 50 trucks daily.They will buy at a price of 765.99 through the NNPC Trading Limited, including their costs movement and sell at the current pump price of 855 naira to 897 depending on the location per liter engine.”a source said.
Challenges from different angles should be expected by Dangote Refinery
Dr.Abdullahi Abubakar Gwandu is an economist and a lecturer with the Department of Business Management Kaduna Polytechnic.
He said Dangote refinery has the capacity to make a difference in the oil and Gas Industry sector not only in Nigeria but across the African continent.
It’s capacity has all it takes to accelerate development and expand Nigeria’s economy, and it will solve a lot of problems that has been bedeviling Nigeria especially in Energy sector.
” Dangote refinery where it is. Happily fully taken off. It has started production in Ernest. However, Nigerians are in a very skeptical situation especially when its products have been mistaken and NNPC started telling Nigerians the price it’s going to be bought and sold.
What I want to say is that for Nigerians to start judging that, their expectations are dashed. I think they are being too much in hurry, they are being too much in haste and they are not being patient because the product has just been rolled out.
Dangote from day 1 has been facing a lot of challenges with the Nigerian government and also with the NNPC which is the sole leader, manager, coordinator and controller originator of energy especially fuel in Nigeria.
There are a lot of problems and I think over time these problems will be sorted out” Dr. Gwandu said.
Who is deceiving Nigerians between Dangote refinery and NNPC
With regard to who is deceiving Nigerians between Dangote and NNPC the economist stated that, is not the responsibility of Dangote to provide fuel to Nigeria. Dangote set up a refinery not for Nigeria only. It’s a business outlet.
Dangote is a private person, the responsibility of supplying fuel to Nigeria is not that of Dangote, it’s that of NNPC.
Dangote is only coming in to take advantage of the situation and contribute his own quota. That is one.
Secondly, Nigerians should know that the Nigerian government has failed, they have privatized and they have no hand in it.They have said that market forces should take responsibility. They are talking about total withdrawal in oil business and the subsidy has also been withdrawn. So I feel NNPC has no business with Dangote to the extent of either blaming him over the problem.
This is the same NNPC that for over the past 25 years, none of their refineries is working, this is the same NNPC that is exporting crude and buying the refined oil into Nigeria.
” He said anybody that wants to take up an additional refinery let them do it. If NNPC wants to revise their own refinery let them revise their own refinery but I think NNPC should completely withdraw its hand.
And for the government to be responsible, they should ban NNPC because NNPC is a public desk, or equally dead.the NNPC has no value in fact it doesn’t exist. Nigeria should allow whoever has money to import oil to do so. Those with money to set up a refinery should go ahead. I think that is what they should do” He added
The negative impact of the crisis
Dr: Gwandu said the before the negative impacts ,there is need to look at the positive impact of Dangote refinery particularly, not only Dangote but any refinery that is going to be established in Nigeria to refine its oil, will have a lot of benefits to Nigerian economy and to the nigerian populace.
“Firstly, it will save Nigerian currency (naira). You know, the exchange rate of naira to buy fuel in dollars has affected the value of our currency seriously.
Secondly, it will boost business activities within Nigeria and the federal government will also be able to generate a lot of revenue for development ,it will also increase tax and other royalties that are going to be paid and so Nigerians are going to be employed so it has a lot of benefits” the analyst stated.
Dr: Gwandu said the issue is not going to be permanent ,so to say there are people called cabal or mafias that have been benefiting from this oil importation. These people see Dangote refinery as a threat to them ,and they will do anything to see that they fight back and that is what is happening, the federal government or NNPC has no business in fixing the price for Dangote refinery. Why won’t they allow marketers to deal directly with Dangote?
Why will they have to be the buyer and sell to the marketers before reaching the public?
Why will they fix the price for Dangote?
Dangote refinery is not owned by the government so what is their claim or them fixing the price and determining who should buy and who should not buy? I believe this is a temporary issue and not a permanent one ,eventually it will be resolved” Dr. Gwandu stated.
He said with the Dangote refinery producing fuel, Nigerians expectations were high with regard to having relief on the price and availability of the highly needed product.
“We really expected that with the presence of this refinery Nigerians will be Emancipated from the domination of foreign powers and oil mafias.And what I call a long enslavement of Nigerians by the oil marketers, as African interest within and outside the continent are dictated, despite the fact that the product is produce in our country and is belong to us as citizens,but yet we could not benefit from it, as few individuals are already there, manipulating the situation to their own advantage ,taking advantage of our ignorance and illiteracy , amazing wealth illegally in the name of oil business” Ambassador Waiya stated.
The civil society activist said Nigerians have been exploited for a long time but with the coming of Dangote refinery,Nigerians think there is going to be an end to the slavery ,but unfortunately,things are turning out to be different from what Nigerians expected.
“The reverse is becoming the case as things are taking a new dimension as powerful forces within and outside Nigeria are conflicting with each other.
We are considering all that is taking place as manipulation and an effort to sabotage the Nigerians interest of enjoying their God given natural resources”Waiya stated.
Ibrahim Abdullahi said Nigerians are now waiting for the second concern from Dangote refinery as they said the first one ,was based on dollar rate.
Other analysts are of the opinion that the NNPCL is not comfortable with Dangote refinery in the business that is why they prefer to continue with the importation of the product despite the lower price which they manipulate.
Available data shows that the Dangote refinery price of PMS is lower than what is obtained in neighboring countries like Ghana and other European countries.
They added that Dangote refinery should be a pride to NNPC ,Nigerian government and all Nigerians and Africans as it’s only two African countries Algeria and Libya are refining their oil but the rest are selling raw material and are importing products.
