Controversy over the supply of petrol from Dangote Refinery to the Nigerian National Petroleum Company Limited (NNPCL) deepened yesterday. In a new twist, a document from the state oil company showed that the refinery has been unable to meet the supply request. According to the document, the NNPCL requested for 1.065 billion litres between September 15 and October 20. But the Dangote Refinery supplied 317 million litres.
The document titled: “Summary of Volume Loading” showed that in September, the plant supplied 103 million litres, being 26 per cent of the 1.065 billion litres.
It also supplied 214 million litres, being 32 per cent of the expected volume.
The refinery rolled out petrol from its plant on September 15 with NNPCL as the sole off-taker.
However, since the beginning of this month when the implementation of the crude sale in naira to local refinery policy initiated by the Federal Government took effect, other marketers have been cleared to make direct purchases from the 650,000 litres per day refinery.
At the rollout of petrol, the NNPCL said it bought the product at N898 per litre from the plant.
But Dangote Refinery contradicted the organisation.
It did not give the amount it sold the product.
This month, in its updated template, the NNPCL said it bought the product at N977 from the plant. This was also disputed.
Yesterday, Dangote Refinery said it had no new court case against the NNPCL and other stakeholders.
The company explained in a statement by the Group Chief Branding and Communications Officer, Anthony Chiejina, that it will withdraw the pending case at the next adjourned date in January.
“This is an old issue that started in June and culminated in a matter being filed on September 6, 2024,” he said.
According to him, the parties are in discussion following the presidential directive on the naira-for-crude initiative.
The statement reads in part: “We have made tremendous progress in that regard and events have overtaken this development.
“No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
“It is important to stress that no orders have been made and there are no adverse effects on any party.
“We understand that once the matter comes up in January 2025, we will be in a position to formally withdraw the matter in court.”
Dangote prayed the Federal High Court in Abuja for an order voiding all licences recently issued for the importation of petroleum products.
It sought N100billion damages against NMDPRA for issuing import licences to NNPCL, Matrix Petroleum Services Limited (Matrix) and others to import petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) despite its production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria.
The plaintiff contends that the licenses issued to NNPCL and others violated the Petroleum Industry Act (PIA).
Dangote stated that it was greatly distressed, adding that its investments risk being jeopardised unless the court intervenes and declares that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries but issuing licenses for the importation of petroleum products.
Dangote, in a supporting affidavit, stated that such licenses should only be issued where there is a petroleum product shortfall.
