Just In: Dangote refinery slams PENGASSAN directive, warns of fuel scarcity, price surge, revenue loss
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Just In: Dangote refinery slams PENGASSAN directive, warns of fuel scarcity, price surge, revenue loss

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Just In: Dangote refinery slams PENGASSAN directive, warns of fuel scarcity, price surge, revenue loss

Admin By Adewale Adewale
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The management of Dangote Petroleum Refinery has strongly condemned the recent directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to halt crude oil and gas supplies to the refinery, describing the move as “criminal, reckless, and an act of economic sabotage.”

In a statement issued on Saturday, the company warned that if carried out, the directive would have far-reaching consequences on the country’s energy security and economy, plunging Nigerians into another round of fuel queues, product shortages, and price hikes.

The refinery stressed that its operations are critical to ensuring the supply of essential petroleum products across the country.

Disrupting its production, it said, would not only cause hardship to ordinary citizens but also undermine the federal government’s revenue base.

“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 Nigerians, whether high and mighty or lowly and ordinary.

“In what circumstance would it be justified for PENGASSAN to so disrupt and introduce insufferable hardship into the living conditions of Nigerians? None that we can see,” the company stated.

The company highlighted that a sudden cut-off in supply would hurt every segment of the economy from households that rely on kerosene and cooking gas, to businesses and industries dependent on petrol, diesel, and aviation fuel.

It cautioned that such disruption would inevitably lead to transportation gridlock, higher commodity prices, and a ripple effect on inflation.

Beyond the hardship on citizens, Dangote Refinery drew attention to the potential loss of government revenue saying any suspension of its operations would stall billions of naira in revenue inflows.

“This is also economic sabotage against the Nigerian State at multiple levels. 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 and indeed qualifies as a strategic national asset,” the statement added.

The refinery further warned that PENGASSAN’s directive, if implemented, could tarnish Nigeria’s reputation among international investors.

It argued that the refinery stands as a flagship project demonstrating the viability of large-scale private investment in Africa’s oil and gas sector.

“An irreparable injury to the Dangote Refinery such as PENGASSAN has directed constitutes a national embarrassment to the country and a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally,” it stated.

The refinery insisted that PENGASSAN lacks the legal backing to issue such a directive, stressing that supply contracts are agreements between the refinery and its vendors, not with the union.

“Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery. There is also no law in our statute books that would support such interference. It constitutes criminal conduct for PENGASSAN or its members to disrupt contracts between Dangote Refinery and its suppliers,” the management said.

The refinery appealed to the Federal Government and security agencies to act decisively to prevent what it described as “unquantifiable and irredeemable hardship” on Nigerians.

It urged PENGASSAN to explore legal and amicable channels of dispute resolution instead of taking actions that could destabilise the energy sector and push the country towards mayhem, chaos, and anarchy.

“PENGASSAN must submit to amicable and legal resolution and not resort to economic sabotage and mob action that could introduce mayhem and chaos and easily translate into anarchy,” the refinery warned.

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