• Sunday, May 26, 2024
businessday logo

BusinessDay

FG declines price setting for Dangote Refinery products, pushes CNG expansion

businessday-icon

The Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has restated that it will not determine the price of petroleum products from the Dangote refinery once fully operational.

Farouk Ahmed, Chief Executive of the NMDPRA said the government is urging oil marketers to commence the process of establishing Compressed Natural Gas (CNG) points at their filling stations to increase consumer accessibility.

He made this known on Tuesday in Abuja during a meeting with key oil marketing companies aimed at addressing issues surrounding the frequent scarcity of petroleum products in the country and exploring alternative solutions.

Read also:Respite for manufacturers as Dangote refinery sells diesel at N1000/litre

Ahmed clarified that while the government encourages local refining to reduce imports, it will not compel oil marketers to purchase from the Dangote Refinery, citing that such decisions are commercial in nature.

He said, “There are concerns about the ability to import petroleum products, especially diesel and aviation fuel, and the advent of the Dangote refinery. We allayed the fears of the marketers and told them that the Dangote refinery is a major achievement in our country because in the past we were importing every liter of petroleum products we required except those supplied by modular refineries. And as an oil-producing country, we believe at NMDPRA that we should support our local industry. And that is why we encourage our marketers to patronise our local refineries.

“But, at the same time, it is a commercial decision that they have to make between the suppliers and the clients. NMDPRA will not determine how much it is sold or how much you are buying. It is their own decision to go to Dangote refinery and purchase, and for Dangote refinery to determine the price they sell. As a regulator, we will not determine the price, we are only interested that the nation is well supplied.”

Regarding the CNG initiative, Ahmed urged oil marketers to incorporate CNG points at their filling stations. He said that this aligns with President Bola Tinubu’s directive that government vehicles must be CNG-powered, and new retail licenses will require CNG points.

Read also: Dangote refinery to get full operating license soon — FG

“We also discussed the CNG revolution and our collective effort to ensure that we reduce the burden on the economy by having an alternative by having an alternative to PMS which is very costly especially due to exchange rate fluctuations and instability. We are looking at gas because we have it in abundance, we have over 200 trillion cubic feet of gas. All we need is to harness the industry to produce, invest, and be good for the consumer and CNG is the way to go.

“We discussed our plans and collective responsibility to add CNG in our petrol stations very soon just like we have PMS, diesel, and kerosene, we also want to have CNG so that it would provide easy access to the consumers but of course, we have to address the supply side.”

According to the NMDPRA helmsman, the agency is working with the producing companies, NUPRC and NNPC Limited as well as the Gas Aggregation Company of Nigeria to ensure that the product is also available at a competitive cost to the consumers.

Meanwhile, Abdukabir Adisa Aliu, CEO of Matrix Energy, speaking on behalf of the companies, expressed readiness to support the government’s efforts to expand energy sources for Nigerians, emphasizing the importance of national interests above all.

“It is the country first and it is when you have a good country that the marketers will be able to operate and the consumers would be able to buy,” he said. “I think the decision of the FG supersedes all other decisions that we have. We are all in alignment with the decisions of the government and plead with Nigerians to be patient.”