An Energy Expert and Economist, Kelvin Emmanuel has alleged that the NNPC only took 5 million liters of PMS from Dangote’s refinery on the first day of production, despite committing to take 25 million liters initially. He noted that NNPC plans to continue importing petrol due to pricing issues, highlighting the tight margin of 46-56 cents between the refinery margin and importation costs.
He emphasized that this is because the Dangote Refinery buys crude oil in US dollars from NNPC, and the proposed naira-for-crude swap arrangement has not yet started. He further noted that NNPC plans to supply Dangote with 11.2-11.3 million barrels of crude oil in October, but this arrangement has not begun. He also highlighted that Dangote Refinery is currently using crude oil stocks purchased from NNPC and the one imported from North and South America in US dollars.
He said in an interview with Arise TV From 15:51, ”Dangote is currently at 70% to 75% capacity utilization which means he’s able to do between 38 and 40 million liters of pMS per day. NNPC said they will be taking 25M liters of PMS from Dangote but they only took 5M liters of PMS yesterday when they started production. NNPC says that it is going to continue to import petrol due to the pricing. Of course, the difference between the Margin for the Refinery and the abroad Importation is between 46 cents and 56 cents which is a very tight margin by any stretch of it.
And let us not forget the fact that Dangote is actually buying crude oil in US dollar from NNPC. The so-called naira for crude swap that the government is proposing is supposed to resume on the 1st of October. And NNPC is projecting that in the month of October, they are going to supply Dangote about 11.2 to 11.3 million barrels of Crude Oil. That arrangement has not started. The Crude oil stock that Dangote is using to refine today was purchased from both NNPC and imported into Nigeria from North America and South America in US dollars.”