NNPCL and Dangote Engage in Intense Negotiations Over Petrol Prices
In Lagos, there’s a standoff between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over petrol pricing, partly due to ongoing supply issues in the oil sector. The two parties disagree on the price, with NNPCL favoring a price that includes subsidies and Dangote pushing for a market-based price. This disagreement has stalled negotiations for over two weeks, preventing Dangote from supplying petrol to local sellers.
Both sides are aware of each other’s limitations and are working towards a compromise that will provide stable pricing and supply. Another meeting is scheduled at NNPCL’s headquarters to hopefully resolve the issue.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, is hopeful that a mutually acceptable price will be agreed upon, but emphasized that NNPCL will adhere to the Petroleum Industry Act in any agreement.
NNPCL is also working to clear a backlog of petrol orders and plans to reopen its purchasing portal once this is done. The portal’s closure has led to concerns about supply delays and rising prices.
During a recent webinar, Huub Stokman, Chairman of the Major Energies Marketers Association of Nigeria (MEMAN), stressed the need for better cooperation among industry players to ensure quality and affordable products. He also highlighted the need for improved infrastructure and energy transition towards cleaner sources like CNG, LNG, and renewables.
Gabriel Ogbechie, CEO of Rainoil Limited, noted a 60% increase in petrol prices recently and called for more investment in infrastructure to improve delivery.
Dr. Billy Gillis-Harry, President of the Petroleum Retail Outlet of Nigeria, highlighted the benefits of deregulation, including better efficiency and government revenue.
Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association (ARDA), emphasized the importance of energy security and adding value in the midstream and downstream sectors.
In related news, Dangote Refinery has faced criticism from marketers over its reduced diesel prices, which have dropped from N1,200 to N900 per litre. Marketers have petitioned President Tinubu, claiming the lower price affects their profits. Dangote’s Vice President, Devakumar Edwin, mentioned that the refinery is struggling to sell diesel locally and may export more products if local demand doesn’t increase. He also noted challenges with crude oil supply, which has impacted the refinery’s operations and Nigeria’s economic recovery.
