Oil marketers in Nigeria have raised concerns that the amount of petrol produced by the Dangote Petroleum Refinery is not enough to meet the country’s domestic needs.
The marketers explained that due to the refinery’s low production levels, dealers would have to import petrol to make up for the shortfall.
The refinery, located in Lekki, Lagos, had previously announced plans to supply 25 million litres of petrol daily. However, reports suggest that the refinery is currently producing only about 10 million litres a day. This has led to growing demands from the Trade Union Congress (TUC) and oil marketers for the refinery to increase its production capacity.
Speaking at a press briefing, the National President of the Trade Union Congress, Festus Osifo, urged the Nigerian National Petroleum Company Limited (NNPCL) to find alternative sources of refined petrol to meet the country’s demand. He said, “If the production from Dangote Refinery is less than 15 million litres per day, it is not sufficient. We should look for other means while efforts are being made to ramp up production.”
A major oil marketer, who spoke anonymously, claimed that Dangote’s refinery was producing far less than the promised amount. “I reliably confirmed that they are not refining up to 10 million litres of PMS (petrol) daily. We are in confusion right now in the downstream oil sector,” the marketer said. He also warned that the lack of supply could lead to fuel shortages if the price of petrol were lower.
In response to the situation, Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), announced that the association would soon begin importing petrol. “We have acquired a tank farm in Calabar and another in Lagos. We are positioning ourselves for the new era and will get our import license soon,” Fashola said.
When asked about the government’s efforts to reduce importation, Fashola replied, “Once there is full deregulation, everyone is free to bring in their products. Monopoly is not good for Nigerians.”
A Professor of Economics at the University of Ibadan, Adeola Adenikinju, emphasized the importance of competition in the petrol market. “At the end of the day, it is the consumers that we have to think about. Competition will bring efficiency and reduce prices, benefiting the consumers,” he stated.
Meanwhile, oil dealers affiliated with IPMAN have started loading petrol products from NNPCL depots. The National Publicity Secretary of IPMAN, Chinedu Ukadike, confirmed that 335 trucks were ready to load, with the NNPCL selling petrol to IPMAN members at N995 per litre.
