Nationwide Fuel Scarcity Hits Hard: Prices Soar Amidst Economic Turmoil

Nationwide Fuel Scarcity Hits Hard: Prices Soar Amidst Economic Turmoil – October 18th, 2024

As Nigerians express frustration over the recent fuel price increase implemented by the Nigerian National Petroleum Company (NNPC) Limited, Naija News provides the latest updates on petrol scarcity, fuel price hikes, and reactions from both the government and citizens….CONTINUE READING

Fuel Price: IPMAN Provides Update on Negotiations with Dangote
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, has assured Nigerians that talks with Dangote Refinery for direct petrol loading from the refinery, which has a capacity of 650,000 barrels per day, are progressing well and will conclude soon.

Maigandi confirmed to Naija News that discussions regarding the necessary arrangements are ongoing, and he is optimistic about reaching an agreement shortly. Speaking during the inauguration of a task force aimed at monitoring and preventing oil bunkering and pipeline vandalism in Abuja on Wednesday, he also announced that IPMAN has resolved its pricing issues with NNPC and is now focused on securing a partnership with Dangote.

“We are close to finalizing arrangements for direct petrol loading from Dangote Refinery. We have received our funds back from NNPC and are negotiating with Dangote and other partners to begin sourcing directly from the refinery,” Maigandi stated.

He noted that these negotiations began following an intervention by the Director-General of the Department of State Services (DSS). The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been directed to issue the necessary import and off-take licenses to IPMAN.

Fuel Scarcity Continues as FG Halts Dangote’s Direct Sales to Marketers
Fuel queues are expanding in Lagos and other states due to a significant shortage of Premium Motor Spirit (PMS), commonly known as petrol. Many filling stations have been without fuel for weeks, causing immense pressure on the few that still provide it, worsening traffic as motorists wait in long lines.

Anonymous reports from several fuel marketers indicate that distribution from Dangote is insufficient to meet local demand. This aligns with an earlier statement from NNPC, confirming that when the Dangote refinery began supplying PMS to domestic marketers on September 15, only 16.8 million litres were loaded—well below the promised 25 million litres per day.

“I can confirm that Dangote’s daily output is less than 15 million litres, which is far below the 40 million litres needed domestically,” a source stated.

NNPC Remains the Sole Buyer of Dangote Petrol – Marketers
Despite recent government directives allowing other oil marketers to begin loading petrol directly from the Dangote Petroleum Refinery, NNPC continues to be the sole off-taker of PMS from the $20 billion Lekki-based refinery.

Oil marketers confirmed on Wednesday that NNPC will retain its exclusive status until its current agreement with Dangote Refinery concludes, although the duration of this agreement remains unclear, as officials from both NNPC and the refinery have not provided details on when it will end.

This follows an announcement by the Federal Government on October 11, 2024, allowing oil marketers to negotiate purchases directly from the Dangote refinery, bypassing NNPC.