Nigerians across the country are groaning as the cost of Premium Motor Spirit (Petrol) has hit over N1000 per liter in many parts of the country.
This comes as Dangote Refinery offers the Nigerian National Petroleum Company Limited a lifeline to exit the petrol importation burden.
Earlier, the 650,000 barrels per day Lagos-based refinery confirmed that it has commenced PMS production.
According to the Spokesperson of Dangote Group, Anthony Chiejinaon Monday, the Dangote petrol would ease endless fuel queues, foster the country’s productivity and ensure energy security.
“The Refinery has started producing Premium Motor Spirit. When it gets to commercial quantity and hits the market, you will know”, he told DAILY POST.
“The aim is to ensure that the product is available and affordable, so that Nigerians will not continue to queue endlessly losing man-hours of work.
“All the man-hours lost, productivity lost due to fuel queues, people don’t have to queue. You get your fuel as at when you want it. You can imagine the level of productivity the country will gain”, he added.
Dangote Petrol processing kick-off comes amid the anxiety created by NNPCL’s admission of financial strain over sustainable supply costs and indebtedness to oil suppliers amounting to over $6 billion.
The state-owned company’s spokesperson, Olufemi Soneye said at the weekend that, “This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply”.
This implies that NNPCL is constrained to the under-recovery cost of petrol, otherwise known as subsidy as import bills rise.
The NNPCL’s admittance of financial strain is generating reactions among stakeholders and public analysts which further compounded the crisis in Nigeria’s oil and gas sector.
No need to panic amid fuel price hike – IPMAN to Nigerians
Reacting to the development, the President of Independent Petroleum Marketers of Nigeria, IPMAN, Abubakar Maigandi urged Nigerians not to panic over NNPCL’s admittance of financial indebtedness and anxiety over the pump price hike.
“Nigerians should not panic about the position of financial strain by NNPCL. It is normal for businesses to be indebted.
“We are working with NNPCL to see that the product is available for Nigerians.
“If there is a price increment, NNPCL would have announced, same with the availability of the product”.
When asked about the cost marketers are buying petrol, he said, “those who obtain their product through the NNPCL sell at N650 to N700 per liter and those who get through the private depot owners sell at N920.
“Marketers who carry the product, especially those who are carrying from Lagos State to Maiduguri in Borno or Calabar, Cross State to Maiduguri, will be above N920 because they have to add their transportation cost and profit margin.
“We want NNPCL to give petrol to our members directly.”
DAILY POST
