The Dangote Refinery has denied reports that it sold petrol to the Nigerian National Petroleum Company Limited (NNPCL) at N898 per litre. Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote Refinery issued the statement on September 15, 2024, refuting claims attributed to NNPCL.
Earlier, NNPC confirmed it had begun loading Premium Motor Spirit (PMS) from the Dangote Refinery on September 15, after months of delays caused by pricing discussions and final preparations at the refinery.
What NNPCL Said:
Olufemi Soneye, Corporate Communications Manager at NNPC, addressed the confusion over pricing, stating, “We successfully loaded PMS at the Dangote Refinery today. Claims of purchasing at N1,300 or N760 per litre are incorrect. The current price for this initial loading is N898 per litre. Pricing is determined by market forces as we are in a deregulated market. We will be receiving 16.8 million litres.”
Before operations began, Soneye had announced that 300 trucks would be stationed at the refinery’s loading gantry to commence distribution on September 15, 2024.
Dangote’s Response
In response to Soneye’s statement, Chiejina refuted the claim that the Dangote Refinery sells PMS at N898 per litre to NNPC, calling the information misleading and suggesting it undermined the refinery’s efforts to address Nigeria’s long-standing fuel supply challenges.
Chiejina clarified that the refinery sells its products to NNPC in U.S. dollars, which offers significant cost savings compared to imports. He assured that the Dangote Refinery would ensure fuel availability in all regions of the country, putting an end to persistent fuel shortages.
Chiejina urged the public to ignore the false pricing reports and await an official announcement on fuel pricing from a Technical Sub-Committee on Naira-based crude sales, which is scheduled to start on October 1, 2024. He explained that the current stock of crude was procured in dollars, justifying the need for accurate price setting.
Further Developments
The disagreement between NNPC and Dangote has sparked fresh debate over petrol pricing in Nigeria as the public hopes for lower fuel costs. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, addressed the situation, expressing optimism that petrol prices would decrease as local refineries, including Dangote, ramp up production.
“We expect that as refineries scale up and achieve greater economies of scale, there will be opportunities to reduce costs, which should benefit consumers,” Edun said. He praised Aliko Dangote and President Bola Ahmed Tinubu for their efforts in addressing Nigeria’s energy issues, noting that this marks a positive step for Nigerians.
As Dangote Refinery begins distributing petrol, the move is seen as a major milestone for Nigeria’s energy sector, with more developments expected in the coming weeks.
