Nigeria faces an escalating petrol crisis as trucks remain stranded at depots due to a standoff between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over pricing. Despite Federal Government assurances of petrol availability by the weekend, oil marketers have not yet begun loading Premium Motor Spirit (PMS), causing persistent fuel queues in major cities.
Stalled Loading and Lingering Queues
Some vessels carrying PMS have arrived at NNPC’s Apapa and Port Harcourt depots. However, independent marketers have not yet started loading. Mustapha Zarma, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that loading had not started on Friday and warned that the queues might continue into Monday.
“Maybe the improvement in supply will start tomorrow or Sunday, but as of today (Friday), there has not been much loading of products,” Zarma stated. He noted that around 2,000 petrol tankers were still at NNPC depots waiting to lift products.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, also reported that marketers had not started lifting petrol, leading to high prices at filling stations still holding stock.
Pricing Controversy: NNPC vs. Dangote
The clash over pricing between NNPC and Dangote Refinery has significantly hindered progress. A presidential aide, who wished to remain anonymous, claimed Dangote Refinery was avoiding setting a price to avoid appearing unfavorable. “The petrol price cannot be less than N1,000 per litre; that was why Dangote decided to push it to the government,” the aide explained.
In contrast, Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, argued that pricing is regulated by the government and that Dangote cannot influence it. “We cannot determine, fix, or influence the product price,” Chiejina said.
NNPC, through spokesman Olufemi Soneye, maintained that the PMS market is deregulated, and pricing should be determined by market forces. Soneye pointed to Section 205 of the Petroleum Industry Act, which allows unrestricted market forces to dictate prices.
Calls for Government Intervention and Market Regulation
Experts are urging immediate government intervention to ensure affordable fuel for Nigerians. Henry Adigun, an energy consultant, estimated that producing a litre of PMS costs about N750, potentially rising to N800 with additional margins. He stressed that expecting prices between N400 and N500 is unrealistic and called for greater transparency.
Professor Wumi Iledare, an energy expert, supported deregulation but urged a “willing seller, willing buyer” approach. He cautioned against allowing NNPC to be the sole buyer of Dangote’s PMS.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has voiced concerns over how the pricing policy affects businesses and consumers. NACCIMA warned that deregulation combined with foreign exchange issues would lead to volatility and inflationary pressures.
Need for Long-Term Solutions
The Manufacturers Association of Nigeria (MAN) criticized the current approach, highlighting how inconsistencies in the energy sector impact manufacturers. President Francis Meshioye urged the Federal Government to address the root causes of the pricing crisis and develop a strategic plan for long-term solutions.
As the petrol crisis continues, the Nigerian government faces increasing pressure to balance deregulation, market forces, and the need for affordable energy. The ongoing pricing dispute between NNPC and Dangote Refinery adds another layer of complexity to this challenging situation.
