Nigerians across the country are lamenting as the cost of Premium Motor Spirit (Petrol) has gone over N1000 per liter in many parts of the country.
This comes as Dangote Refinery offers the Nigerian National Petroleum Company Limited a lifeline to exit the petrol importation burden.
Earlier, the 650,000 barrels per day Lagos-based refinery confirmed that it has commenced PMS production.
Spokesperson of Dangote Group, Anthony Chiejina, on Monday, stated that the Dangote petrol would ease endless fuel queues, foster the country’s productivity and ensure energy security.
“The Refinery has started producing Premium Motor Spirit. When it gets to commercial quantity and hits the market, you will know”, he stated.
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“The aim is to ensure that the product is available and affordable, so that Nigerians will not continue to queue endlessly losing man-hours of work.
“All the man-hours lost, productivity lost due to fuel queues, people don’t have to queue. You get your fuel as at when you want it. You can imagine the level of productivity the country will gain”, he added.
Dangote Petrol processing kick-off comes amid the anxiety created by NNPCL’s admission of financial strain over sustainable supply costs and indebtedness to oil suppliers amounting to over $6 billion.
The state-owned company’s spokesperson, Olufemi Soneye said at the weekend that, “This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply”.
This implies that NNPCL is constrained to the under-recovery cost of petrol, otherwise known as subsidy as import bills rise.
The NNPCL’s admittance of financial strain is generating reactions among stakeholders and public analysts which further compounded the crisis in Nigeria’s oil and gas sector.
Reacting to the development, the President of Independent Petroleum Marketers of Nigeria, IPMAN, Abubakar Maigandi urged Nigerians not to panic over NNPCL’s admittance of financial indebtedness and anxiety over the pump price hike.
“Nigerians should not panic about the position of financial strain by NNPCL. It is normal for businesses to be indebted.
“We are working with NNPCL to see that the product is available for Nigerians.
“If there is a price increment, NNPCL would have announced, same with the availability of the product”.
When asked about the cost marketers are buying petrol, he said, “those who obtain their product through the NNPCL sell at N650 to N700 per liter and those who get through the private depot owners sell at N920.
“Marketers who carry the product, especially those who are carrying from Lagos State to Maiduguri in Borno or Calabar, Cross State to Maiduguri, will be above N920 because they have to add their transportation cost and profit margin.
“We want NNPCL to give petrol to our members directly.”
Meanwhile, around the nation’s Capital, only a few filling stations were dispensing fuel with long queues.
Only NNPCL and a few other retail outlets were seen dispensing fuel at N617 per litre along Kubwa Expressway. RainOil in Gwarimpa sold at N720 per litre.
In Nasarawa, Niger and Kogi states, the product was sold for between N850 to N1,100 per liter on Monday.
Delta, Bayelsa, Cross Rivers, Imo, Enugu and Abia state residents got petrol between N870 to N1000 per liter.
“Presently, the products are not available as they should be. The products are not sufficiently available because some marketers are still waiting for the supply.
“We are waiting for a response from Dangote Refinery on PMS loading. For now, we have not gotten any written documents.
“If the directive comes, we will direct our marketers to go there for Petrol”.
As a solution, the leader of IPMAN said, “The government should fast-track the CNG program to provide a better alternative for Nigerians.”
