The Dangote Group has addressed media reports suggesting that the Nigerian National Petroleum Corporation (NNPC) has begun purchasing petrol from its refinery at N897 per liter. The company clarified that it does not have the authority to set or influence petrol prices in Nigeria. The company emphasized that such responsibilities lie with the relevant regulatory agencies.
In a statement signed by Anthony Chiejina, the Chief Branding and Communications Officer, the Dangote Group urged the public to disregard the reports about NNPC lifting fuel and clarified that no contract with NNPC on petrol pricing has been finalised.
The statement read:
“Our attention has been drawn to a headline ‘NNPC lifts Dangote Petrol, sells at N897 per litre’ published in BusinessDay Newspapers on Wednesday, 4 September 2024. 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.”
The statement continued:
“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.”
The company also assured Nigerians that petrol from its refinery would be available nationwide once operations are fully underway.
Background Context
After several delays and missed deadlines, the 650,000-barrel-per-day capacity refinery began producing petrol on Monday, following the chairman of the Dangote Group’s presentation of samples to the public.
However, reports indicated that NNPC would be the sole buyer of refinery petroleum products and distribute them to other marketers nationwide. Devakumar Edwin, Vice President of Dangote Industries Limited, stated this.
The issue of petrol pricing has been controversial in Nigeria since President Bola Tinubu removed the fuel subsidy. The government maintains no subsidy, but various industry stakeholders suggest otherwise.
Currently, the projected landing cost of petrol in Nigeria stands at N1,200 per liter, while the pump price at NNPC retail stations is set at N897 per liter.
Last month, President Tinubu approved the sale of crude oil to the Dangote refinery in Naira. This is contrary to the usual international trading practices, where oil is typically traded in foreign currency.
