DRL and NNPCL: Civil Society Demands Clarity Amid Fuel Supply Dispute
Editor
The Civil Society Council of Nigeria (NCSCN) has raised pressing questions for DRL, demanding clarification on its pricing strategies and relationships with other petroleum marketing companies, which appear hesitant to purchase directly from DRL despite its domestic presence.
In a recent press conference, the National Civil Society Council of Nigeria (NCSCN) Executive Director, Blessing A. Akinlosotu, made the demand while addressing the alarming allegations exchanged between the two entities and the implications of this dispute, particularly as it relates to fuel scarcity in Nigeria. “If DRL continues to under-deliver, we risk reverting to the fuel scarcity that has plagued us for decades,” Akinlosotu warned.
Blessing said, the recent involvement of Civil Society Council of Nigeria (NCSCN) into the fray between Dangote Refinery Ltd (DRL) and the Nigerian National Petroleum Company Ltd (NNPCL), follows allegations and counter-allegations regarding operational costs and fuel pricing, raising concerns about the future of fuel availability in the country.
The executive director explained that the controversy erupted shortly after the much-anticipated commencement of operations at the Dangote Refinery, which was expected to alleviate fuel scarcity and lower prices for Premium Motor Spirit (PMS). However, recent statements from both parties have revealed a troubling discord. DRL accused NNPCL of compromising standards by allowing low-quality fuel imports, while NNPCL countered by alleging that DRL was producing sub-standard products.
The situation escalated on September 15, 2024, when DRL’s Group Chief Branding and Communication Officer, Anthony Chiejina, issued a press release rejecting NNPCL’s claim that it was purchasing PMS at N898 per litre. Chiejina described the NNPCL statement as “misleading and mischievous,” urging the public to await a formal pricing announcement from a Technical Sub-Committee established by President Bola Ahmed Tinubu, scheduled for October 1, 2024.
In response, NNPCL released its own statement asserting that prices for PMS are negotiated directly and that it has been paying for the fuel in US dollars pending the start of naira transactions. The NNPCL’s announcement included estimated pump prices based on its September 2024 transactions with DRL, further complicating the narrative.
NCSCN has now called for an independent inquiry into the situation, highlighting several critical findings:
DRL provided only 16.8 million litres of PMS to NNPCL, falling short of the latter’s demand of 25 million litres per day.
NNPCL had issued Letters of Credit for the full amount but was informed it would receive less than anticipated.
The ongoing shortfall in supply could lead to renewed fuel scarcity.
As the situation unfolds, NCSCN has expressed support for NNPCL’s position, cautioning against any potential monopolistic practices by DRL. They urged DRL to publicly clarify the specifics of its transactions with NNPCL and to address the growing concerns among Nigerian citizens about fuel availability and pricing.
As both parties prepare for further negotiations, the NCSCN calls on DRL to clarify its position publicly and to engage constructively with NNPCL to ensure that the promises of lower fuel prices and consistent supply to Nigerians are fulfilled.
