The presidency has hinted that the Dangote refinery and the other local refineries will be game changers and provide some relief in the country’s current fuel supply crisis.
This was made known in a statement by the Special Adviser to the President on media and strategy, Bayo Onanuga, on his official X (formerly Twitter) account on Wednesday, September 3, 2024.
The presidential spokesman, who was reacting to a series of articles attacking the administration of President Bola Tinubu for not telling the truth about the fuel subsidy payment after the Nigeria National Petroleum Company (NNPC) Limited admitted it was owing suppliers about $6 billion, noted that the coming on stream of these local refineries will benefit the country and its economy on all fronts.
Onanuga said that NNPC cried out recently because it could no longer sustain the petrol price differential on its balance sheet without becoming insolvent and greater implications on the ability of the three tiers of government to function as the state-owned oil company has failed to pay into the Federation Account, the money that should go to the government.
No easy choices, NNPC must survive
Onanuga said there are no easy choices, noting that something must be done to make NNPC survive, keep the engines of government running as well as petrol flowing at the pumps.
He said, ‘’There are no easy choices. Something must be done to make NNPC survive, keep the engines of government running and petrol flowing at the pumps. That is the scenario that is unfolding and the game changer and big relief giver may well be the Dangote refinery and other local refineries which will become the fuel suppliers to the local market.
‘’When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain. There will also be a drop in the huge demand for foreign exchange to import petroleum products.’’
What you should know
Nairametrics earlier reported that the NNPC had revealed that its $6 billion debt to international oil traders was the major cause of the petrol supply shortages across the country. This was after it had initially attributed the petrol scarcity to logistics challenges and flooding in some parts of the country.
There had been reports that international oil traders stopped the supply of petrol to NNPC due to a $6 billion debt.
NNPC in its statement said, “NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.’’
Meanwhile, there had been earlier reports that the NNPC filling stations in Lagos have adjusted the price of petrol to over N800 per litre amid the ongoing fuel scarcity.
This is as there had been some media reports that the NNPC has increased the pump price of petrol to N897 per litre, although there is still no official confirmation from the state-owned oil company.
