As Nigerians continue to express frustration over the recent fuel price hike implemented by the Nigerian National Petroleum Company (NNPC) Limited, Naija News brings the latest updates on the ongoing petrol scarcity, rising fuel costs, and the reactions from both the government and citizens.
Fuel Shortage Threatens Amidst Dangote’s Criticism of NNPCL’s Crude Supply
The Dangote Petroleum Refinery has raised concerns about the Federal Government’s inability to meet its commitment under the naira-for-crude initiative. According to Devakumar Edwin, the Vice President of Dangote Industries Limited, the refinery has received only a small fraction of the agreed-upon crude oil supply from NNPC, falling short of the volume required to sustain adequate refining operations.
In a statement to Reuters, Edwin highlighted the challenges faced due to the underdelivery of crude oil. He emphasized that the NNPC had promised to provide at least 385,000 barrels per day (bpd) of crude since the program began in October. However, the actual supply has been far below this target, leaving the refinery unable to produce refined products at the necessary scale.
“We require 650,000 bpd, and the NNPC committed to delivering a minimum of 385,000 bpd, but their supply has been nowhere near that figure,” Edwin stated. This shortfall in crude oil supply has further exacerbated the looming fuel scarcity, which could lead to higher prices and reduced availability of refined petroleum products across Nigeria.
Petrol Price Reductions Expected as Landing Costs Decline
In a glimmer of hope for Nigerian consumers, a decrease in the landing cost of petroleum products is expected to result in slightly lower petrol prices at filling stations nationwide. Data from major marketers, including NNPC, shows that the landing cost of petrol has dropped to ₦935.94 per litre, down from the previous price of ₦977.
With this reduction, filling stations are anticipated to adjust their prices, potentially lowering the cost per litre for consumers. According to the Major Energy Marketers Association of Nigeria (MEMAN), the drop in landing costs is due to a recent decrease in the exchange rate of the naira, which has stabilized in recent days. This has contributed to a slight reduction in the cost of importing petroleum products into the country.
MEMAN’s report also indicates that the price of diesel has decreased to ₦1,071.8 per litre, calculated at an exchange rate of ₦1,659.37 per dollar. The report outlined the ex-depot prices for various petroleum products, including petrol, diesel, aviation fuel, and LPG, with the price for petrol in Lagos estimated at ₦1,029 per litre, diesel at ₦1,120 per litre, aviation fuel at ₦1,040 per litre, and LPG at ₦1,125 per litre.
Additionally, the report listed the price range for Compressed Natural Gas (CNG) as being between ₦230 per standard cubic meter (scm) and ₦450 per scm.
Despite these potential reductions, the situation remains volatile, with petrol stations adjusting their prices based on fluctuating landing costs. While the drop in landing costs may offer some relief to Nigerian consumers, concerns over consistent supply, the political landscape, and future price fluctuations continue to dominate discussions on the fuel market. The ongoing shortage of crude oil and other logistical challenges faced by refineries in Nigeria remain significant hurdles in the country’s quest to stabilize fuel prices and ensure adequate supply.
