Fuel Price Controversy: As Dangote Refineries And NNPCL Denials Keep Leaving Nigerians In The Dark (OPINION)

By Isaac Asabor

On September 15, 2024, Dangote Refineries, through its Group Chief Branding and Communications Officer, Anthony Chiejina, categorically denied selling Premium Motor Spirit (PMS) to the Nigerian National Petroleum Corporation Limited (NNPCL) at the inflated price of N898 per liter. The statement came in response to widespread rumours circulating in the media that blamed Dangote Refineries for the sharp hike in fuel prices. Chiejina dismissed the reports as “false and unfounded,” but the controversy over fuel pricing in Nigeria is far from settled, particularly as the denials by Dangote Refineries and NNPCL denial keep leaving Nigerians in the dark.

This back-and-forth between two of the country’s most powerful players in the oil industry reveals a much deeper problem. Nigerians are growing increasingly frustrated by the lack of transparency surrounding the pricing of PMS, and this latest controversy only highlights the chronic opacity in the nation’s fuel sector.

The rumor that Dangote Refineries sold fuel to NNPCL at N898 per liter has sparked outrage, but beyond the corporate denials and media reports, everyday Nigerians are left grappling with a much larger issue, the rising cost of living. Fuel prices in Nigeria affect almost every aspect of daily life. When the price of PMS increases, so does the cost of transportation, food, and essential goods. For a country that is already battling soaring inflation and economic instability, this has devastating consequences.

What baffles many is how a country like Nigeria, endowed with vast oil reserves, continues to suffer from frequent fuel price hikes. When the Dangote Refinery, Africa’s largest refinery, became operational, there was hope that local refining would lower the cost of fuel. Instead, Nigerians are watching in disbelief as prices continue to rise, pushing many deeper into poverty. The promise of affordable fuel seems like a distant memory, and the latest controversy only adds to the confusion.

The ongoing price war between Dangote and NNPCL is not just a corporate spat; it speaks to a broader disconnect between the decision-makers in Nigeria’s oil industry and the millions of citizens who rely on fuel for their daily survival. It is becoming increasingly clear that the economic challenges faced by everyday Nigerians are not being fully grasped by the leadership of these major oil corporations and government bodies.

This piece could not have been expressed at a better time than now as in a swift response to recent allegations; the Dangote Group has issued an official statement refuting claims made by the Nigerian National Petroleum Company Limited (NNPCL) that the conglomerate sells petrol to the national oil firm at a rate of N898 per litre.

The press release, dated September 15, 2024, and signed by Mr. Anthony Chiejina, the Group Chief Branding, Communications Officer, firmly denies the assertion, stating that Dangote Group did not sell petrol to the NNPCL at N898 per litre. According to the group, the claims, which have sparked widespread reactions and raised concerns about fuel pricing in the country, are unfounded and misleading.

“The Statement partly reads: “Our attention has been drawn to a statement attributed to NNPCL’s spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to NNPCL. The Statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024 towards addressing energy insufficiency and insecurity, which have bedeviled the economy in the past 50 years. We urge Nigerians to disregard the malicious statement and await a formal announcement on pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu, GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.

It added, “It should also be noted that we sold the product also to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country, regardless of their remote nature.

“We assure Nigerians of the availability of quality petroleum products and putting an end to the endemic fuel scarcity in the country.

This clarification follows comments by some officials at the NNPCL, which implied that the oil company was purchasing petrol at exorbitant rates from Dangote, further stoking public concerns over the rising cost of fuel. With fuel subsidy removal already putting significant pressure on Nigerians, the suggestion that fuel prices could soar even higher has sparked considerable debate.

The Dangote Group’s press release further stressed its commitment to providing affordable energy solutions to Nigerians, noting that its refinery project aims to stabilize and enhance the country’s energy supply once fully operational. The company called on the public and media to avoid spreading misinformation that could cause undue panic.

As the largest single-train refinery in the world, Dangote Refinery is seen as a potential game-changer for Nigeria’s energy sector, with the capacity to significantly reduce the country’s reliance on imported fuel.

Meanwhile, industry experts have called for transparency in fuel pricing and greater clarity on the ongoing negotiations between the NNPCL and Dangote Group to ensure that Nigerians are not unduly burdened with high costs as the country navigates its post-subsidy economy.

At this juncture, it is expedient to urge both Dangote Refineries and NNPCL to prioritize transparency and open communication with the public in order to address the growing confusion surrounding the pricing of Premium Motor Spirit (PMS). With rumors circulating about fuel prices reaching as high as N898 per liter, Nigerians are left in the dark about the true cost of this essential commodity. It is crucial for these major players in the oil industry to provide clear, accurate, and consistent information regarding fuel pricing, ensuring that the public understands how these prices are determined. The lack of transparency only serves to fuel speculation, mistrust, and frustration.

In a country where fuel prices directly impact the cost of living, the current uncertainty is contributing to heightened anxiety among the population. The constant shifts in pricing and the contradictory reports between Dangote Refineries and NNPCL are no doubt raising the blood pressure of millions of Nigerians who are already struggling to make ends meet. If the goal is to stabilize the market and ease public concern, it is imperative that both entities engage in proactive communication. They must openly address these price rumors and offer concrete explanations for any changes in fuel pricing, instead of leaving the public to guess what might be happening behind closed doors.

For the sake of public trust and economic stability, Dangote Refineries and NNPCL need to step up and act responsibly. The ongoing price controversies have real-world consequences for citizens, businesses, and the overall economy. Transparent, straightforward communication would not only help calm public anxieties but also restore confidence in Nigeria’s oil sector. By fostering an open dialogue with the public, both organizations can help alleviate the confusion and mistrust that are currently clouding the fuel market.