NNPCL Announces Petrol Supply from Dangote Refinery to Begin September 15
The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery will begin to enter the market starting September 15, 2024. This follows the commencement of petrol refining at the Dangote Refinery earlier this week.
In a statement issued on Thursday in Abuja by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the company clarified that petrol prices would now be determined by market forces. The statement also addressed ongoing speculations about price control, reiterating that the downstream sector has been fully deregulated and that NNPCL would no longer set fuel prices.
Adedapo Segun, NNPCL’s Executive Vice President of Downstream, explained that foreign exchange (forex) illiquidity had been a significant factor influencing PMS price fluctuations, which are now regulated by the free market as mandated by the Petroleum Industry Act (PIA). Segun noted that the current fuel scarcity should ease within a few days as more filling stations recalibrate their systems and resume selling PMS.
He cited Section 205 of the PIA, which establishes that petroleum prices are governed by market forces rather than government intervention. He emphasized that the exchange rate plays a crucial role in determining fuel prices.
Regarding the supply of petrol from the Dangote Refinery, Segun stated that NNPCL is preparing for the September 15 timeline when products will be available for distribution. He assured Nigerians that the NNPCL is working closely with fuel marketers to ensure that stations remain open and well-stocked to meet demand, while measures are being taken to prevent product diversions.
Segun’s comments follow the Federal Government’s announcement of an impending boost in petrol supply over the weekend, with vessels already offloading. The government also reaffirmed that PMS prices will not be fixed by any authority.
The move to begin supplying petrol from the Dangote Refinery is expected to stabilize the fuel supply chain, reduce import dependence, and ensure a steady supply of petrol across Nigeria.
