NNPC Says Private Companies Can Start Fuel Import From June

NNPC Says Private Companies Can Start Fuel Import From June

  • The Nigeria National Petroleum Company Limited (NNPC) has stated that private companies can begin petrol imports
  • NNPC Chief Executive Officer Mele Kyari said that the company would end crude oil swap contracts
  • He revealed that immediate new players come into the market, the price of petrol will moderate

The Group Chief Executive Officer of Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, has stated that private firms can begin fuel import in Nigeria.

The NNPC boss revealed this and said the company plans to end crude oil swap contracts and switch to cash payments for refined products.

Mele Kyari, NNPC, oil contracts
NNPC Chief Executive Officer, Mele Kyari Credit: Bloomberg
Source: UGC

NNPC ends major contracts with oil consortiums

Kyari stated this during an interview with Reuters on Saturday, June 3, 2023.

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He said the plan aligns with President Bola Tinubu's efforts to deregulate the fuel market and ease the financial strains on the government.

Kyari said:

"In the last four months, we practically terminated all Direct Sale Direct Purchase (DSDP) contracts. And we now have an arm's-length process where we can pay cash for the imports.
"This is the first time NNPC has said it is terminating crude swap contracts. By importing less gasoline as private companies import the bulk, NNPC can pay for its purchases in cash."

Reuters reports that NNPC was still rationing crude for fuel swaps for July loading, but less than in previous months.

The NNPC also allocated crude oil to the consortium's swap contracts in its March reports.

New petrol marketers to enter Nigeria

Kyari had told Nigerians that there would be new players in the market following the deregulation of the downstream sector of the petroleum industry.

He said in a recent interview that investors were unwilling to enter the market due to the subsidy regime, which does not guarantee repayments on subsidized products.

He stated that the market can self-regulate, and oil firms can import products or produce locally, take the product to the market, sell it, and get returns on investment.

The oil chief said the NNPC could not do above 30% of the market going forward and highlighted that oil marketing firms would come in as soon as the market stabilizes.

NNPC asks Nigerians not to hope on Dangote and Port Harcourt refineries to crash petrol prices

Legit.ng reported that the Nigerian National Petroleum Corporation Limited (NNPC) had asked Nigerians to refrain from hoping for the newly commissioned Dangote Refinery and the Port Harcourt Refinery to crash petrol prices.

NNPC boss, Mele Kyari, said that the two refineries and others in the country would not change the pump price of petrol.

Kyari revealed this during an interview with Arise Television on Thursday, June 1, 2o23, stressing that the belief that petrol prices would crash immediately after the country begins domestic refining and production was false.

Source: Legit.ng

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