It’s disheartening that since the emergence of the rolling out of the Dangote Refinery petrol on the 15th of September, 2024, Nigerians are being taking through the storm of price fluctuations and heady petrol supply. Twice within a month, the price of petrol has moved from ₦897 to ₦977 from it’s first price of ₦650 at the beginning of the year, 2024.
Yet, inspite of this frightening and account drenching fluctuation of petrol prices, the product is still not easily available in all the nooks and crannies of the Country.The DRL have through all this excruciating pain on Nigerians, refused to tell us exactly how much it is selling it’s petrol per litre to NNPC.
The Committee on Crude for Naira, headed by the Minister of Finance, Wale Edun, just released a statement that Marketers who are willing and able should get in touch with DRL in order to make their petrol purchases as NNPC Ltd is no longer the sole off taker of DRL’s petrol supply.
Therefore, the issue of petrol pricing have become entirely removed from the ambit or purview of the power of the NNPC. The petrol market have therefore become completely deregulated, with every marketer able to assign, on their own, a price to the petrol they sell to the public at their various retail outlets. This totally debunks the headlines and news of various media outlets that daily screams that the NNPC have raised petrol prices again ! No ! NNPC have only gave us its price of ₦998 per litre in Lagos and ₦1,030 per litre in some other States within the Country, after buying at ₦977 from DRL. No doubt, there are a little add on fees that are even beyond the power of the NNPC to fix, for example, the fee charge of NMDPRA is not fixed by NNPC, likewise some other charges too.
But, the major charge is the price of petrol per litre from DRL, which is ₦977, which is ₦79 higher than the price that NNPC bought in September 15, 2024, when DRL rolled out it’s petrol product.The reason given by DRL of this price of ₦898 in September, 2024 is to the fact that they were selling at that high price because they bought the crude it used to produce then, in dollars. The believe of Nigerians was that if the crude for Naira arrangement with the government starts by October 1, 2024, then there’s the tendency the price of petrol may be lower.
But, alas, we were all wrong ! The price from DRL have jumped up by about 10 percent and still, mum is the word from DRL about the price they’re selling to marketers or why there’s a price jump, judging from the fact that they have started receiving crude in Naira.
Or, is DRL saying they are yet to take delivery of the crude for Naira arrangement ? What have happened to their price jumping up again when they’ve purchased crude in Naira without the attendant premium that would have been charged in the international oil market ? I believe it is the corporate responsibility of DRL to inform Nigerians on what exactly is the situation of things as it stands now.
Added to the issue of a higher price within a month is the scarcity being experienced by buyers.
This, according to impeccable sources which have been reported by some media outlets is that DRL was to supply NNPC as a sole off taker that kick-started during the 15th September sales, a total of 25 million litres per day out of the total of about 35 to 40 million litres per day, said to be the daily consumption of petrol by Nigerians.
So, the reported planned supply of petrol from Dangote Refinery to NNPC from September 16 to October 6, 2024, should have been about 540 Million litres in total but DRL have been said to have only supplied NNPC Ltd just over 100 Million litres so far within that period.
So, the daily supply contract with DRL is 25 million litres per day but they’ve only supplied an average of about 7 Million litres per day. That is a supply performance standing at 27% of the optimum expectations of NNPC from DRL. Who then do we say is fueling the fuel crises ?
Petrol Marketers are at the top of their voice that NNPC is not supplying them petrol for payments made but who do we blame ? NNPC that’s just a middleman or DRL that’s refining the product and has not been able to supply NNPC with adequate petrol as agreed between the two parties ? Why will there not be scarcity then ? It is simple economics theory that when demand outstrips supply, then scarcity is the word and that ultimately leads to high prices. So, why will there not be a hike in price far higher than what NNPC retail outlets charge per litre of petrol ? In fact, some petrol outlets are selling at ₦1,150 per litre, even in Lagos where NNPC is selling slightly below ₦1,000.
Can we then lay any blame against the NNPC Ltd except to further encourage them to bring the Port Harcourt Refinery and all the other refineries back to life in the shortest possible time so that Nigerians can heave a sigh of relief and thereby quench the disadvantages enshrined when a monopoly rules the market ?
Moreso, we can’t run away from the fact that DRL is supposed to be a big boost to the economy of Nigeria. Nigerians should, with the arrival of DRL be able to enjoy the privilege of having the biggest refinery in Africa within it’s shores. DRL should be a gain in the pocket and not a pain in the neck to Nigerians. Or, do we say, we are undergoing the pangs of pain before a childbirth ? Is there a silver lining at the end of this terribly dark tunnel ?
Finally, we do ask, how do we tackle the shortfall in supply by DRL ? Can DRL please as a responsible corporate entity enlighten Nigerians on this painful shortfall that’s hurting the Nigerian economy ?
How will marketers get the supply of the quantity of petrol that they’ve paid for without waiting till Godot ?
How will petrol become easily available and cheap in contrast to the increased price we have now ?
How do Nigerians benefit from the largest refinery in Africa ?
How do we achieve the 30 Million litres per day consumption of Nigerians, if perchance we are even blessed enough to afford such quantity at the present high price per litre ?
Nigerians, patiently, await a reply.
Femi Oniyide, Esq
08036877692.
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