. Says all transactions are Naira-denominated
. NNPC schedules to load 300 trucks from refinery
. Marketers say members 60% diesel, Jet fuel national truck-out from DR
By Stanley Onyeka, Lagos
The Federal Inland Revenue Service (FIRS), has clarified that only the Nigerian National Petroleum Company (NNPC) Ltd., will be allowed to load premium motor spirit (PMS), popularly called petrol, from the Dangote Refinery for now.
The agency also said all transactions at the refinery, including payment for the supply of crude, payment for the lifting of refined petroleum products as well as all other regulatory costs and fees will be done in Naira.
FIRS Chairman, Zacch Adedeji, who made the clarification, told journalists that NNPC will have sole supplier of PMS from the Dangote Refinery, and will in turn, sell to local marketers.
He said: “I am glad to announce that all agreements have been put in place, and the loading of the first batch of PMS as already announced by NNPC from the Dangote Refinery will commence on Sunday 15th September, 2024.
“And from 1st of October, 2024, NNPC will commence the supply of crude oil to Dangote Refinery to be paid for in Naira.
“In return, Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
“Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, and NNPC will then sell to various marketers for now.
“All associated regulatory costs – NPA, NIMASA, and Federal Inland Revenue and all other regulatory or fees that are associated with this transaction will also be paid for in Naira.”
Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, and NNPC will then sell to various marketers for now.
NNPC petrol trucking
The FIRS clarification is sequel to the NNPC ‘s post on its X handle on Saturday, which said it deployed over 100 trucks to the Dangote Refinery for petrol lifting, adding that about 300 trucks would be stationed at the loading gantry by the end of the day.
The Company said the mobilising of trucks to the refinery’s loading gantry was in preparation for the scheduled loading of premium motor spirit (PMS), popularly called petrol, on Sunday.
The NNPC post reads: “In preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Ltd. has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki.
“As of Saturday afternoon, NNPC Ltd. had deployed more than 100 trucks, with hundreds more en route.”
Dr Adedeji’s clarification also clears the confusion surrounding oil marketers’ access to loading of PMS from the Dangote Refinery.
The marketers had sought for clarification even as they insist that members, including Asharami, MRS Oil and Gas, AA Rano, Rainoil, Prudent, NIPCO, Aym Shafa, Danmarna, and a host of others, have patronised the Refinery over the past months.
This, they said, reinforces their commitment to ensuring seamless access to petroleum products across the country.
The Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, called for transparency in the operations of Dangote Refinery.
He argued that the sector needs to operate transparently in a manner that gives all stakeholders the opportunity to thrive and contribute significantly to the quest of ensuring “availability, reliability and accessibility of petroleum products nation-wide.”
Mr. Adewole said the alleged boycott of lifting of PMS from the Refinery was incorrect, as marketers were still awaiting clearance from the government on the modalities regarding the offtake of the scarce product.
He said: “DAPPMAN as evidenced by the patronage of various products from the Dangote Refinery by its members believes firmly in meeting Nigeria’s energy needs and remains aligned to calls for the nation not to end up in a monopoly, which will only jeopardise our economic growth and development.”
According to him, indigenous operators have consistently argued that the trading of petroleum products globally rests on the critical issues of price and quality.
“Offtake will, in keeping with the laws of demand and supply, gravitate towards sources where products can be bought at a lower price, better quality and seamless accessibility,” he said.
All associated regulatory costs – NPA, NIMASA, and Federal Inland Revenue and all other regulatory or fees that are associated with this transaction will also be paid for in Naira.
Marketers again counter Dangote’s claim
The petroleum marketers again countered claims by the Dangote Refinery, saying its members lifted 518,500 metric tons of Automotive Gas Oil (AGO), and Jet A1 from the Refinery, or 60% of national truck-out in five months.
The Vice-president, Dangote Industries Limited (DIL), Devakumar Edwin, during an X space, had accused the oil marketers of not patronizing its diesel and jet fuel, putting the patronage at 3% only.
Specifically, Mr. Edwin said: “The conglomerate of all the importers, are refusing to buy from us. It is very strange that after putting up the refinery to supply the products locally, I have to export every diesel and jet fuel because they do not want to buy from us.
“We started selling the diesel, we fixed the price, and it was lower than the prevailing market price. Then, we brought the price further down and they (marketers) wrote to the president complaining.”
But documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Independent local marketer.
NMDPRA data showed that marketers lifted 489,500 MT of AGO and 29, 000 MT of Jet A1 distributed across various Nigerian ports, with 17 AGO shipments to Lagos, 6 to Warri, 2 to Port Harcourt, and 1 to Calabar. All three Jet A1 shipments were discharged in Lagos.
