Dangote warns PENGASSAN directive could trigger fuel scarcity, price hikes

Dangote Petroleum Refinery has cautioned that the recent directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to cut crude oil and gas supplies to its facility could plunge Nigerians into another round of fuel scarcity, trigger price hikes, and cause revenue losses for the government.

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In a statement released on Saturday, the refinery said: “The products that would be disrupted and stopped include but are not limited to aviation fuel, petrol, kerosene, diesel and cooking gas – all products that are used and required by all stripes of Nigerians and persons living in Nigeria, whether high and mighty or lowly and ordinary.”

It warned that any sudden disruption of supply would inflict hardship nationwide. “In what circumstance would it be justified for PENGASSAN to so disrupt and introduce hardship into the living conditions of Nigerians? None that we can see,” the company said.

Beyond the immediate effect on citizens, the refinery highlighted the impact on government revenue. “Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments – both Federal and sub-nationals. That contribution is currently threatened by PENGASSAN and would of course be paused if and as soon as and for as long as the PENGASSAN directive is implemented by its branches,” the statement noted.

The company also argued that the directive had no legal basis. “Absolutely no law gives PENGASSAN the right to direct its branches to ‘cut off’ gas and crude oil supplies to Dangote Refinery at all. Besides, it constitutes misconduct for PENGASSAN or its members to disrupt or interfere in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil,” it stated.

Describing the refinery as a strategic national asset, the statement continued: “Dangote Refinery is the only refinery of its type in Africa and ordinarily should be the pride of all Nigerians as well as the governments of Nigeria. It should ordinarily have special protection and status.”

The company urged swift intervention. “We call on the Federal Government and security agencies to act swiftly. Nigerians should take note of the hardship which PENGASSAN wishes to inflict on all of us if not checked. Fuel queues, energy shortages and price hikes could quickly resurface,” it warned.

Concluding, Dangote Refinery appealed for dialogue: “We urge PENGASSAN to submit to amicable and legal resolution and not resort to actions that could introduce mayhem, disrupt the economy, and discourage investment in Nigeria’s oil and gas sector.”

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