Dangote issues major warning, says PENGASSAN action may spark fuel crisis, price hike

The Dangote Petroleum Refinery has raised alarm over a recent directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warning that the move to halt crude oil and gas supply to its facility could unleash nationwide fuel shortages, rising pump prices and revenue losses for government.

In a statement issued on Saturday, the refinery stressed that the consequences would hit every Nigerian.

‘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 said.

The company warned that any disruption would worsen economic hardship. “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 statement read.

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The refinery further noted the potential hit to government earnings. “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,” it added.

Describing the directive as unlawful, the company said: “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.”

The statement described the facility as a strategic national asset. “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.”

It called on authorities to intervene swiftly. “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.”

Appealing for dialogue, the refinery said: “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.”