Devakumar Edwin, Vice President of Dangote Industries Limited, stated that the national oil company is prepared to purchase its products exclusively to meet local demand.
“We are currently testing the product (gasoline), and it will soon begin flowing into the product tanks,” Edwin explained.
“If there are no local buyers, we will export it, just as we have been exporting our aviation jet fuel and diesel,” he added, though he did not specify when the gasoline would be available on the market.
Earlier, Nairametrics reported that NNPC Limited acknowledged its debt to international oil traders, which has greatly contributed to the fuel supply shortage faced by local marketers.
Recent reports reveal that NNPC owes these traders around $6 billion in subsidy obligations, prompting the traders to halt their supply of imported petrol to the national oil company.
Although NNPC initially denied these claims, it later admitted that its outstanding debts to suppliers have been a significant factor in the ongoing fuel scarcity across the country.
“NNPC Ltd. has noted recent reports in national newspapers about the company’s substantial debt to petrol suppliers. This financial burden has put considerable pressure on the company and threatens the sustainability of fuel supply,” NNPC stated. “In compliance with the Petroleum Industry Act (PIA), NNPC Ltd. remains committed to its role as the supplier of last resort to ensure national energy security. We are actively working with relevant government agencies and other stakeholders to maintain a steady supply of petroleum products nationwide.”
The announcement that the national oil company will become the exclusive buyer of petrol from the Dangote refinery could provide much-needed relief to NNPC, which is currently struggling with its international obligations to oil traders.
If the Dangote refinery supplies petrol exclusively to NNPC, it could significantly reduce importation and logistics costs, allowing local marketers to purchase petrol from NNPC at a lower price.
This arrangement could also help alleviate the persistent fuel scarcity that has affected the country for over a month, with little improvement from the national oil company so far.
The announcement that the national oil company will become the exclusive buyer of petrol from the Dangote refinery could provide much-needed relief to NNPC, which is currently struggling with its international obligations to oil traders.
If the Dangote refinery supplies petrol exclusively to NNPC, it could significantly reduce importation and logistics costs, allowing local marketers to purchase petrol from NNPC at a lower price.
This arrangement could also help alleviate the persistent fuel scarcity that has affected the country for over a month, with little improvement from the national oil company so far.
With the capacity to meet both domestic demand and export to other African countries, the Dangote refinery is set to play a key role in stabilizing Nigeria’s fuel supply.
Additionally, the Federal Executive Council has recently approved the sale of crude oil to the Dangote refinery in local currency, on the condition that the refinery will sell the processed petrol back to the country in the same currency.
These developments are expected to help resolve Nigeria’s ongoing fuel scarcity.
