Between NNPC & Dangote: Separating Facts from fiction
1. Government or NNPC Ltd does not fix PMS price
2. PMS price is determined by market forces (new reality of deregulation)
3.Dangote refinery will never sell cheaper PMS to Nigeria’s as the price of Brent is ovrr $70.
4. NNPC Ltd bought Dangote Refinery’s fuel at N898/litre
5. NNPC Ltd has agreement with Dangote to supply 25 mlitres/day commencing from Sunday 15th September, 2024
6. On Saturday, 14th September, 2024, Dangote wrote a letter to the NNPC saying that he can only supply 16.8m litres instead of the 25m litres earlier agreed, leaving a shortfall of 8.2m litres
7. From Sunday (15th September, 2024) till the end of Tuesday (17th September, 2024), Dangote has only been able to provide 5.8m litres. This simply means instead of 50m litres he promised to give for the two days (at 25m litres/day), he still has a shortfall of 44.2m litres to still supply NNPC Ltd.
8. Meanwhile, NNPC Ltd has issued Letters of Credit to pay him for the full 25mlitres/day
9. The cost of petrol for the past one year has been N1,100. But NNPC Ltd has been covering for the shortfall in order to ensure that Nigerians have the fuel at a reasonably affordable and fair price of N620/litre.
10. NNPC Ltd cried out when it realized that the payment it was making for the shortfall (on behalf of ordinary Nigerians) was no longer sustainable.
11. It is not true that the Government determined the price of Dangote’s fuel. Rather, it was Dangote that decided to sell his fuel to NNPC at N898/litre. Dangote’s initial offer was well over N900, but NNPC Ltd negotiated it down to N898.litre
12. NNPC Ltd has asked Dangote to also sell his fuel to other marketers, as long as it is on willing buyer-willing seller basis, (a basic PIA provision).
13. The only reason why NNPC Ltd bought fuel from Dangote is to ensure that Nigerians have a fair pricing at the pump.
14. It is not true that Dangote wants to sell his fuel to Nigerians at N600 and government increased it. Dangote’s Initial offer was higher (well over N900!) and NNPC Ltd negotiated the price lower to the N898 price.
Nigerians be wise!
