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By Adewale Sanyaolu
The long wait for an end to petrol scarcity in Nigeria took a promising turn yesterday as the 650,000 barrels per day Dangote Refinery officially began the lifting of Premium Motor Spirit (PMS), also known as petrol.
At precisely 1:40pm, the refinery commenced its first petrol dispatch, putting to rest months of speculation and uncertainty among industry players and consumers alike.
The milestone, stakeholders note, marks the beginning of a new era, with the refinery set to deliver its first batch of petrol to retail outlets, offering much-needed relief from the persistent fuel shortages.
Speaking at the refinery plant during an inspection of loading activities at the gantry, Vice President, Dangote Industries Limited, Mr. Edwin Devakumar, said the gantry has the capacity to load 2,900 trucks daily with 40 trucks simultaneously in 40 minutes.
An elated Devakumar said for 52 years the country has battled with petroleum products shortages, assuring that the production capacity at the refinery was capable of meeting the petroleum products needs of Nigeria with a huge surplus to export.
“Today is a moment of pride for every Nigerian because this is a Nigerian-owned refinery built by a Nigerian EPC contractor producing petrol for Nigeria alongside other petroleum products. This is the largest single train refinery in the world and we are very excited about it.”
He, however, assured that the influx of petrol tankers on the road should not be a concern, saying production evacuation is a blend of trucking and vessels.
According to him, for products going to coastal locations such as Calabar, Delta among other places, products could be moved through the waterways using vessels while those within Lagos and neighboring states would be through trucking.
He said the company has received proposals from firms to build pipelines for product evacuation, which he said is also a viable option that could be explored.
He said the NNPC Ltd could take the lead in that regard by constructing pipelines to serve its depots in Mosimi, Ogun State, and Atlas Cove in Lagos to ease the transportation of petroleum products.
Similarly, some marketers who spoke to Daily Sun in confidence said there are no immediate plans to return to petroleum product importation, saying the sector was not yet fully deregulated.
They insisted on buying petrol directly from Dangote Refinery and criticised NNPC Ltd for maintaining a firm grip on the market.
“As you can see, NNPC is the sole offtaker from Dangote refinery. That tells you we are still operating the old order of NNPC being a monopoly. All other marketers will have to buy from NNPC. They will be the ones to fix the price.
As of today, NNPC retail outlets are selling petrol at N855 per litre, which is far below the landing cost of petrol, which is around N1,200 per litre. This is one of the reasons Dangote has failed to tell Nigerians the actual cost of its petrol. But from our findings, his petrol cannot be less than N1,250 per litre. Technically, NNPC would still be subsidizing the product for Nigerians, and that is why they are the sole offtaker.”
“If we dare import today, who will buy from us? Our price cannot in any way be cheaper than what you will get at NNPC filling station. That means we will run into losses because the market is not yet competitive.”
Meanwhile, the Lagos State Government said it has devised a comprehensive traffic management strategy to guarantee free traffic flow along the Lekki-Ajah corridor ahead of the refinery’s commencement of the distribution of refined petrol to outlets.
The Special Adviser to Governor Babajide Sanwo-Olu on Transportation, Sola Giwa, made this known in a statement issued yesterday to reaffirm the state government’s commitment to safeguarding citizens’ welfare and maintaining orderly traffic.
He confirmed that the Lagos State Traffic Management Authority (LASTMA) had been fortified with state-of-the-art equipment and trained personnel to be strategically deployed to oversee and regulate traffic flow within the affected areas.
Giwa promised the residents and commuters in the Lekki-Ajah vicinity that thorough preparations had been made, urging them to remain calm and confident in the state government’s capabilities.
The statement added: “In collaboration with relevant stakeholders, LASTMA has mobilised advanced tow trucks and emergency response equipment to promptly address anticipated potential traffic disruptions. Medical ambulance services are also on high alert to ensure rapid response in emergencies.
“As the Dangote Refinery commences operations, the Lagos State Government emphasised the imperative of strict adherence to traffic regulations by tanker operators, particularly during loading and navigation within the Lekki-Ajah axis. The state government will rigorously enforce these regulations to avert traffic disruptions and ensure seamless vehicular movement.
“The Lagos State Government reaffirms its commitment to safeguarding citizens’ welfare and maintaining orderly traffic during this pivotal period of industrial activity.
“All motoring public, particularly commercial bus operators including mini-bus drivers, are hereby cautioned to comply with traffic laws, refraining from picking up or dropping passengers at undesignated bus stops, avoiding driving against traffic (One-way drive), and observing all road signs, including traffic signals, among other regulations.
“Adherence to these regulations will ensure a harmonious and efficient transportation system,” the statement added.
