Oil & Gas
THE Nigerian National Petroleum Company Limited (NNPCL) says it has supplied 30 million barrels of crude oil to the Dangote refinery to date.
The Executive Vice President of NNPCL Downstream, Adedapo Segun, disclosed this on Thursday while speaking during an appearance on Arise Television.
Adedapo noted that plans were underway to supply an additional 17 million barrels to the refinery soon.
“We have supplied about 30 million barrels to Dangote so far—6.3 million this month, and we will supply 11.3 million in October,” Segun stated.
He explained that this development is part of the Federal Government’s strategy to sell crude oil to local refineries, noting that the 6.3 million barrels will be delivered in seven cargo shipments.
“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 added.
On the matter of the NNPCL being the sole importer of petrol, he clarified that this was not intentional but rather a response to prevailing 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,” he stated.
According to him, ensuring a stable fuel supply and price necessitates 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,” he added. vanguard
A.I
Sept. 5, 2024
Tags: Adedapo Segun NNPCL
