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Nigeria's NNPC to provide Dangote refinery 13 unrefined cargoes in October

Nigeria's stateoil company will supply the Dangote Oil refinery a total of 13 crude freights in October to relieve pressure on local fuel supply, head of the firm's downstream operations said on Thursday.

Nigerians have been facing long fuel queues which started in July and this has actually caused a sharp boost in the pump rate of gas and higher fares for commuters.

Adedapo Segun, executive vice president of NNPC Ltd, ( Downstream) told regional tv station Emerge TV that NNPC Limited, in line with government's strategy to offer unrefined locally in naira, is supporting the Dangote Oil refinery with 7 freights in September and a further 13 freights in October.

So we are doing everything we can to ensure this situation (fuel scarcities) eases off, as soon as possible, Segun stated.

Crude supply to the Dangote Oil refinery in October will impact Nigeria's unrefined exports however help meet demand locally.

President Bola Tinubu's government last year opened gas imports to private companies by announcing an end to subsidies however foreign currency lacks and a cap on the price of petrol has suggested that NNPC remains the only importer.

This is set to continue with Dangote Oil Refinery which started processing gasoline this week.

Dangote Refinery might not right away confirm what rates they would offer to the NNPC, but the state-oil company has actually fixed 855 naira ($ 0.5411) as the pump cost in its retail outlets, a. 39% increase from the previous rate.

This has actually sustained much discontent in the nation as other. fuel outlets have actually raised their prices, some by more than 50%

As Nigerians face longer fuel lines, labour unions,. small companies and trade groups have actually opposed the new gasoline. rate.

A steep cost hike would likely activate widespread price. boosts, potentially reversing the recent easing in inflation. seen in July and resulting in another rise in inflation rates,. Chinyere Almona, head of the Lagos chamber of commerce and. industry said in a declaration.

Nigeria depends upon fuel imports because its. government-owned refineries run by the NNPC are not. functioning due to years of disregard.

Gasoline exports might fall with Dangote oil refinery. anticipated to provide 25 million litres of fuel into the. market this month.

(source: Reuters)