Efforts to mitigate the fuel scarcity crisis in Lagos and its environs are underway as NNPC Limited takes action while Dangote Refinery and oil marketers strategize pricing and distribution plans ahead of its impending production commencement.
With Dangote Refinery set to refine 650,000 barrels per day (bpd) of crude oil and commence production in May 2024, discussions between refinery management and independent marketers are ongoing regarding pricing, distribution logistics, and margins for stakeholders along the value chain.
Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Alhaji Abubakar Migandi Garima, revealed that discussions with Dangote Refinery are centered on a proposed lifting price of N550 per litre in Lagos. This price may vary across different regions due to transportation costs and distance.
The impending operation of Dangote Refinery presents an opportunity for Nigerians to benefit from potentially lower petrol prices. Professor Wumi Iledare of the Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and Policy Advocacy believes that with Dangote Refinery in full operation, lower petrol prices could become a reality.
While stakeholders anticipate the positive impact of Dangote Refinery’s operations, there are calls for government support to other indigenous refinery projects. President of Crude Oil Refinery-owners Association of Nigeria (CORAN), Mr. Momoh Oyarekhua, proposed the creation of a $1 billion fund to aid local investors in completing refinery projects across the country.
The announcement by NNPC Limited regarding the resolution of fuel supply issues in Lagos signifies a step towards normalcy in the affected areas. Chief Corporate Communications Officer, Olufemi Soneye, assured the public that efforts are underway to sustain petroleum product sufficiency and urged motorists to refrain from panic buying.
