The Nigerian National Petroleum Company Limited (NNPCL) has announced the supply of 30 million barrels of crude oil to the Dangote Oil Refinery, with plans to provide an additional 17 million barrels in the coming months.
Adedapo Segun, Executive Vice President of NNPCL Downstream, revealed this on Thursday during an appearance on Arise Television. Segun detailed that 6.3 million barrels will be supplied in September and 11.3 million barrels in October.
This initiative aligns with the Federal Government’s strategy to sell crude oil to local refineries. Segun also mentioned that the 6.3 million barrels will be delivered in seven separate cargoes. He expressed concern that the current fuel pump prices do not accurately reflect market conditions.
“The pump price today is not reflective of the market. NNPCL is the sole importer of Premium Motor Spirit (PMS) in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” he said, stressing that market forces should drive fuel prices rather than any single entity.
He clarified that NNPC’s role as the sole importer of petrol was not a deliberate decision but rather a response to market conditions.
“Let me put it into proper perspective. NNPC is not a regulator. We didn’t choose to be the sole importer. We don’t determine who participates in the market. We stepped in when others reduced their participation. It is not about us wanting to be monopolists,” Segun stated.
He further explained that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.
“Market conditions need to be ideal, and there needs to be FX liquidity,” he added, suggesting that broader economic reforms may be needed to address the fuel pricing issue.
NNPC has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for processing.
