The Dangote oil refinery has received 30 million barrels of crude oil from the Nigerian National Petroleum Company Limited, with intentions to supply an additional 17 million barrels shortly. Adedapo Segun, the Executive Vice President of NNPCL Downstream, revealed this information on Thursday during a speech on Arise Television. Segun states that the business will deliver 11.3 million barrels in October in addition to 6.3 million barrels in September. "We will supply 11.3 million barrels in October, bringing our total supply to about 30 million barrels—6.3 million this month."
He continued by saying that this plays a role in the federal government's choice to sell crude to nearby refineries. The 6.3 million barrels will be delivered in seven cargoes, according to Segun. He voiced worry that the pump price as it is does not accurately represent the state of the market.
The current pump price does not accurately represent the market. It is unusual because NNPCL is the only importer of Premium Motor Spirit (PMS) in the nation. He emphasized that market forces, not any one organization, should control fuel prices. "We should be moving towards a situation where the free market determines prices," he added. He made it clear that NNPC's position as the only importer of gasoline was a result of the state of the market, not a conscious choice. "Allow me to place it in the right context. Not that NNPC is a regulator. We did not decide to act as the exclusive importer. Who enters the market is not decided by us. When others stopped participating, we took over. It has nothing to do with our desire to have monopolies.
He went on to say that perfect market circumstances, such as a more liquid foreign exchange market, would be necessary to achieve a stable fuel supply and pricing. "Optimal market conditions and foreign exchange liquidity are imperatives," he continued, implying that more extensive economic changes might be required to tackle the problem of fuel prices. Working closely with commercial refineries like Dangote, NNPC has made sure that there is a consistent supply of crude oil available for processing.
