With just days left before the Nigerian National Petroleum Company Limited (NNPC) was scheduled to start lifting Premium Motor Spirit (PMS) from the Dangote Refinery on September 15, 2024, crucial commercial agreements have yet to be finalized. Despite announcements by NNPC’s Executive Vice President of Downstream, Adedapo Segun, on a recent live TV program that the NNPC would begin operations with the Dangote Refinery mid-September, both parties remain at a standstill regarding pricing and quantity.
This revelation follows a series of investigative reports highlighting that neither quantity agreements nor pricing structures have been established. A senior official at the Dangote Refinery emphasized the lack of preparedness, noting that significant commercial engagements such as pricing discussions and legal documentation are incomplete.
Meanwhile, the Crude Oil Refiners Association of Nigeria (CORAN) suggests that PMS prices could remain competitive if the Federal Government grants the necessary concessions to Dangote. Speculation about the potential high costs of Dangote’s petrol—potentially reaching N1,000 per litre due to the current landing costs—continues to unsettle markets and stakeholders.
