Chairman of Dangote Refinery, Aliko Dangote, has said that his refinery has sufficient petrol supply to eliminate fuel queues for up to 12 days.
He said this while fielding questions from State House correspondents after President Bola Tinubu met with members of the crude oil and refined products sales in local currency implementation committee led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
Dangote said the refinery in Lagos has the capacity to produce over 30 million liters of petrol daily, contingent on demand from the Nigerian National Petroleum Company (NNPC) and local retailers.
“We have 500 million liters in our tanks right now. Even without imports or production, this stock can sustain the country for more than 12 days. We are more than ready to supply a minimum of 30 million liters per day and ramp up production as needed,” he said.
Despite these assurances, fuel queues persist across major cities in Nigeria, leading to public frustration. When asked about the discrepancy between his claims and the reality on the streets, Dangote explained that his role as a producer does not extend to retail. “I am not in the business of retail. If I were, you could hold me accountable. Retailers need to come forward and collect the fuel we have available. We have what they need. If they come and pick up the fuel, you will not see any queues at filling stations. It’s costing me money every day to keep fuel in our tanks,” he said.
The businessman expressed confidence that if retailers are willing to buy fuel from his refinery, it would significantly alleviate the current shortages. “If they have been able to import 55 million liters, I see no reason why they wouldn’t come and collect our product for distribution,” he said.
Dangote, expressed optimism following what he described as a productive meeting with President Tinubu regarding the future of Nigeria’s fuel supply. He highlighted the importance of the discussions, which centered on utilising a market-determined exchange rate for crude oil and petroleum products.
“You heard what the chairman of the committee on naira, crude, and petroleum products said. We had a very good meeting where we agreed that NNPC will buy crude just like any other marketer. This is a significant step forward,” he said.
Dangote revealed that approximately 300,000 barrels of crude oil have been allocated to Trigo Refining and Petrochemical Company for the production of various petroleum products, including liquefied petroleum gas (LPG), petrol, aviation fuel, and more. He said the meeting also addressed the role of Afrexim as a settlement bank between Dangote and NNPC, facilitating smoother transactions in the crude oil market. “This initiative will breathe life into many industries, from plastics to aviation,” he stated.
While expressing confidence in the refinery’s ability to meet local demand, Dangote acknowledged that current consumption levels may fluctuate due to rising prices. “With our capacity ramping up to about 420,000 barrels per day, we will be able to satisfy the market fully,” he explained.
Earlier, Edun shared insights from the meeting with President Tinubu regarding the implementation of an initiative to sell crude oil to local refiners in naira.
He said, “The initiative allows local refiners to purchase crude oil and sell their products in naira to the Nigerian public. What we have achieved is the establishment of market pricing for petroleum products. This, coupled with market pricing for foreign exchange, sets our economy on a path toward industrialisation.”
While acknowledging that there are still challenges ahead, Edun expressed confidence in Nigeria’s trajectory toward industrial development. “Although it’s early days and much work remains, we now see a clear path toward modernising our economy,” he remarked.
Meanwhile, the NNPCL, yesterday, increased the pump price of Premium Motor Spirit (PMS), from N998 per litre to N1,025. The increase which has taken immediate effect across its entire retail outlet represents an increase of N27 per litre.
The latest hike confirms the Daily Sun exclusive report on Monday that fuel marketers have adopted a weekly review of petrol price increase. NNPC Retail had on October 9, 2024, increased its petrol pump price from N855 per litre set in September to N988.
Motorists, have expressed rage at the latest hike, saying the government is making life unbearable for the average Nigerian. In separate interviews with Daily Sun, motorists, mostly commercial bus drivers said their margins are weekly being eroded due to the frequent changes in petrol prices.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) in a recent statement raised concerns about the rising petrol pump prices in Lagos and Abuja, warning that this could trigger a cycle of economic hardship across the country.
The statement signed by NACCIMA’s national president, Mr. Dele Oye, noted that the prices, which have surged to N998 and N1,030 per litre respectively, are creating pressure on businesses and households nationwide. He warned that the price hike could drive up transportation costs, worsen inflation, and significantly affect small and medium-sized enterprises.
Oye emphasised the need for a thorough assessment of the economic impacts, especially on pricing for goods, services, and transportation.
“With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges. Given that fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria. Households will find themselves paying more not only for fuel, but also for everyday goods and services, prompting a vicious cycle of rising costs and economic hardship. The recent fuel price increase will have a profound impact on micro and nano businesses, many of which rely heavily on petrol generators to power their operations,” he said.
Credit: The Sun