The Nigerian National Petroleum Company Limited (NNPCL) is poised to become the “initial exclusive buyer” of products from the Dangote Refinery as the 650,000 barrels per day plant begins production of premium motor spirit (PMS), commonly known as petrol. This development comes at a time when Nigeria is grappling with severe fuel shortages, with many NNPCL retail outlets closed and fuel prices soaring to as much as N1,000 per litre across the country.
Reports have indicated that the NNPCL is currently facing financial challenges, including a debt of over $6 billion. This situation has significantly impacted the nation’s fuel supply, causing long queues at filling stations and forcing many motorists to endure extended wait times. Some stations have also remained closed due to the scarcity of fuel, further aggravating the situation.
According to a report by Reuters, the Dangote Refinery is expected to start supplying petrol in the coming weeks, with the NNPCL acting as the exclusive buyer initially. This move is anticipated to help address the current fuel supply gap in the country.
Devakumar Edwin, Vice President at Dangote Industries Limited, stated, “We are testing the product (gasoline) and subsequently it will start flowing into the product tanks. If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel.”
Despite the imminent supply from Dangote, the ongoing scarcity has caused significant disruption nationwide. In cities like Abuja and Lagos, both motorists and commuters are feeling the brunt of the crisis.
Many civil servants have been forced to walk to their workplaces due to the high cost of transport fares, which have surged as a result of the scarcity. Long queues of vehicles and motorcycles are now a common sight at the few stations that are still dispensing fuel.
