NNPCL vs Dangote: We bought at N898/litre; it’s a lie, we sold at a lower price. Okay, disclose exactly how much you sold to us

Monday, 16 September 2024 04:33

NNPCL vs Dangote: We bought at N898/litre; it’s a lie, we sold at a lower price. Okay, disclose exactly how much you sold to us

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NNPCL vs Dangote: We bought at N898/litre; it’s a lie, we sold at a lower price. Okay, disclose exactly how much you sold to us

A controversy has emerged between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over the price of petroleum products, as the newly operational refinery began supplying petrol to the state-owned oil company on Sunday, September 15, 2024.

NNPCL's Chief Spokesperson, Olufemi Soneye, stated that the company purchased premium motor spirit (PMS), commonly known as petrol, from Dangote Refinery at N898 per liter. However, Dangote Refinery swiftly countered this claim, describing it as "misleading and mischievous."

In a statement, Anthony Chiejina, Dangote's Group Chief Branding and Communications Officer, urged the public to disregard NNPCL's assertion and await a formal pricing announcement from the government-appointed Technical Sub-Committee on Naira-based crude sales to local refineries.

Chiejina emphasized that their current stock of crude was procured in dollars and sold to NNPCL in dollars, resulting in "significant savings" compared to current imports.

Despite Dangote's denial, NNPCL has stood firm on its position. Soneye insisted, "If the price isn't N898, then what is it? We would be happy to receive a discount." He added that the government is not setting fuel prices, as it's a deregulated market where prices are determined by market forces.

The dispute comes in the wake of a recent Federal Executive Council directive for NNPCL to engage local refineries, including Dangote, in naira-based transactions for crude oil sales and refined products. This initiative aims to reduce pressure on the naira and improve fuel availability in Nigeria.

As the controversy unfolds, NNPCL has deployed hundreds of trucks to the 650,000 barrels per day Dangote Refinery, with loading operations commencing on Sunday. The state-owned company is set to be the sole off-taker of refined petrol from Dangote Refinery, which will then distribute to various marketers.

Both parties agree that this development marks a significant step towards addressing Nigeria's longstanding energy insufficiency. However, the pricing dispute highlights the complexities involved in transitioning to local refining and deregulated fuel pricing in Africa's largest oil-producing nation.