,,,,, Motorists, other residents in Lokoja elated.
Photo credit: Gulf Nigeria.
By Dada Ahmed in Lokoja.
Motorists in Lokoja, Kogi State are celebrating a potential decrease in fuel prices, following the resolution of the dispute between the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery as NNPCL has agreed to commence lifting products from Dangote Refinery starting Sunday.
The motorists and other members of the public expressed their feelings in various chats with the correspondent of The Reporters in Lokoja on Saturday
They welcomed the development, and described it as a significant relief that could reduce transportation costs and other financial burdens, particularly the skyrocketing prices of food stuffs that has gone beyond the purchasing capacity of the “common man”in the country.
The people, however ,stressed the importance of the two companies adhering to the agreement to ease transport fare and other social and economic challenges faced by Nigerians.
Energy analysts, such Engr. Suleiman Ali,a petrol chemical engineer expressed optimism that that this development could lead to a reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol to between N857 and N865 per litre instead of N1,000 and N1,300 per litre.
According to Vanguard,the deal between NNPCL and Dangote Refinery, which took over a week to finalize, is expected to result in petrol prices of N857 to N865 per litre, thus entailing an under-recovery of approximately N130 for NNPCL.
President Ahmed Bola Tinubu has emphasized that petrol prices should not impose a heavy financial burden on Nigerians, given the current economic conditions, a source in the Presidency said.
NNPCL’s Chief Corporate Communications Officer Olufemi Soneye confirmed that the company has begun deploying trucks and vessels to Dangote Refinery in preparation for the scheduled lifting date of September 15, 2024.
He further disclosed that around 100 trucks had arrived at the refinery, with the number expected to increase to 300 by Saturday evening.
Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), indicated that clarity on pricing is awaited but expressed readiness to begin petrol lifting ,once details are finalized.
The Finance Minister, Mr. Wale Edun, has expressed delight that this agreement would ease the pressure on foreign exchange demands and strengthen the Naira, pointing out that a significant portion of FX is used for petrol imports.
The Finance Ministry’s Director of Information and Public Relations, Mohammed Manga, qouted his principal as stating that the Federal Government has successfully initiated the sale of crude to local refineries and the purchase of petroleum products in Naira.
This move, the minister added,aimed at reducing pressure on the Naira, eliminate transaction costs, and improve product availability.
The new agreement is also anticipated to alleviate the severe petrol shortages in Nigeria and potentially lower recent high prices, he said.
