The Dangote Refinery, one of the largest in the world, may begin exporting its Premium Motor Spirit (PMS), commonly known as petrol, as it faces reluctance from the Nigerian National Petroleum Company Limited (NNPC) to become its sole domestic buyer.…..For More READ THE FULL ARTICLE HERE ▶▶
Thank you for reading this post, don't forget to subscribe!According to PUNCH, on Saturday, NNPC spokesman Olufemi Soneye clarified the company’s stance, stating that it would not purchase Dangote’s petrol unless it was priced below the international market rate. “The pricing of petroleum products from any refinery, including Dangote Refinery Limited, is determined by global market forces,” Soneye explained.
This contradicts earlier statements by Aliko Dangote, the President of the Dangote Group, who had indicated that the refinery was poised to release its products pending NNPC’s readiness.
Dangote had optimistically said, “We are ready, we are waiting for them [NNPC], and I hope they will be ready like yesterday.” His remarks fueled expectations that the refinery would quickly supply petrol to Nigerian stations and reduce persistent fuel shortages and price hikes.
However, the NNPC has made it clear that it is not obligated to purchase from Dangote or act as the sole distributor of the refinery’s output. “NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment,” Soneye added, emphasizing that the Dangote Refinery, like other domestic producers, is free to sell to any marketer on a “willing buyer, willing seller” basis.
This response from the NNPC followed a statement by the Muslim Rights Concern (MURIC), which alleged that the NNPC was deliberately frustrating Dangote’s efforts. MURIC’s statement expressed concerns that NNPC’s recent adjustments to pump prices could prevent Dangote from offering competitive pricing, effectively sidelining the refinery from the local market.
As speculation grows about the refinery’s future role in Nigeria’s fuel supply chain, Dangote’s management has begun signaling a potential pivot to export markets. Devakumar Edwin, Dangote Industries’ Vice President for Oil and Gas, hinted that the company might have no choice but to focus on international buyers.
“If the traders or NNPC are not buying the product, obviously we will end up exporting the PMS as we are doing with aviation jet and diesel,” Edwin said during a recent interview.…..For More READ THE FULL ARTICLE HERE ▶▶
