BREAKING: FG Reportedly Directs Dangote Refinery To Set Petrol Prices

FG has reportedly directed Dangote Refinery to set petrol prices in Nigeria.

 

NewsOnline Nigeria reports that the federal government is considering granting Aliko Dangote’s refinery the authority to set petrol prices,

 

According to reports by Bloomberg, the decision could reshape the government’s control over fuel prices paid by consumers.

 

The report indicates that Nigeria will permit Dangote to set the price of gasoline for petroleum marketers starting next month, according to officials familiar with the matter.

These officials requested anonymity, as they are not authorized to speak to the media.

 

Before now, Nigeria—Africa’s largest oil producer—relied entirely on imported petrol, subsidizing the cost at a significant annual expense. However, with Dangote’s refinery in Lagos beginning local petrol production, the burden of imports on the NNPC is expected to ease.

 

Since August 2023, the Nigerian National Petroleum Company Ltd., the sole importer of petrol, has been reselling the product below market rates to control prices, following a brief removal of the subsidy that worsened inflation and fueled public dissatisfaction.

 

This week, the NNPC raised the price by 45% to N897 per liter, bringing it closer to market levels after acknowledging substantial debt to international suppliers, which has impacted its ability to maintain a sustainable supply of petrol nationwide.

 

These changes come in the midst of severe petrol scarcity across major Nigerian cities, as debts incurred by NNPC—partly due to the subsidy—have hindered its capacity to supply fuel.

 

The NNPC disclosed that the government owes it N7.8 trillion in subsidy debts for the seven months leading up to July. Looking ahead, petrol marketers will be permitted to purchase products directly from the Dangote Refinery, according to sources.

 

Dangote says it cannot fix petrol prices

The plan to allow the Dangote refinery to set petrol prices come amidst a recent statement by the Dangote Group that it cannot influence, set prices of petrol from its refinery stating that only the federal government’s regulatory authorities can do so.

 

It also stated that NNPC has not began lifting petrol from the refinery as the issue of pricing has not been concluded.

 

It stated, “We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.” 

“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.” 

 

“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.”