–We’re still negotiating with NNPC, Dangote
–Only unrestricted market can end queues, NNPC
–Marketers insist on equal access
Three days after the NNPC Limited increased the pump price of petrol and Dangote Refinery announced the commencement of petrol distribution from the $20 billion facility, queues at filling stations have failed to abate.
Checks in Abuja showed that very few stations were opened to customers despite the petrol hike which has seen black marketers selling the product N1,500 per litre.
To add to the supply challenge, Dangote Refinery has disclosed that NNPC which was made the sole off-taker of its premium motor spirit also known as petrol has not commenced the lifting of the product.
Dangote said it was still negotiating the terms of the contract with the national oil company.
Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina in a statement on Thursday said the company is not in a position to determine the price of petrol as the sector is regulated.
“We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.
“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.
“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities”.
He urged the public to disregard the reports “as it is misleading and does not represent the true position in this matter.
“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”
Bloomberg had reported that the Federal Government was reconsidering the decision to make NNPC the sole off-taker of petro from the refinery. The report added that the move would allow the refinery to set the price for its petrol rather than having the government peg the rate.
Only unrestricted market can end queues – NNPC
Speaking on the continuing queues at filling stations, the Executive Vice-President, Downstream, NNPC, Adedapo Segun, said only unrestricted and competitive pricing of the product can end queues at the petrol stations.
Segun who appeared as a guest in a national television programme pointed out that at N897 per litre the government is still paying subsidies on the product.
According to him, “If you look in section 205 of the PIA, that’s the Act that gave birth to NNPC Limited, it tells you that petroleum prices or fuel prices were based on unrestricted free market conditions. And so, when you have a situation where fuel prices remain the same, that’s what is unusual, you won’t see that in other climes, where you have prices fixed for a long period.
“It’s actually supposed to move in consonance with changes and market conditions. During the summer months, prices are high because it’s a driving season, in the winter months, prices come down and things like that. So, that’s what the PIA provides for, prices should move with the seasons.”
He insisted that the downstream sector “should be free market, unrestricted market-based conditions…what’s sustainable is the unrestricted free market pricing of PMS. That way, competition takes over, and Nigerians will get the best.
“Everyone will compete for market share, and the quality of service will improve. That feeling of entitlement by marketers or companies in the business will go away because they will compete against each other to serve consumers better.”
Mr. Segun said despite the challenges NNPC was working hard with marketers to address the problem of scarcity in the country, saying that the NNPC is working twenty-four-seven to solve the issue.
“We’re working with all of the marketers. You know we have almost a thousand stations around the country, but that’s not enough. We’re working with all of the marketers, engaging with them to ensure that fuel stations open early and close late, and make sure that there’s enough fuel in all of the stations. So, we are ensuring that deliveries are made to stations. We are doing our best to make sure that there are no diversions,” he said.
But speaking to Vanguard, the Public Relation Officer, Independent Petroleum Marketers Association, IPMAN, Chief Chinedu Ukadike said marketers were yet to receive any allocation from NNPC.
He said: “Nothing has changed and we are still waiting. There is confusion everywhere and we are struggling to differentiate what is real and what is not. Nobody has received any load from Dangote. We are waiting for information so that we know what to do.
“We are still insisting that every marketer should get access to Dangote products whether you are a major marketer or independent, it should be equal opportunity for all”, he added.
