Petrol: Dangote Refinery in fresh trouble amid NNPCL’s outburst

There are indications that the $20 billion worth of Dangote Refinery may be in a fresh challenge with the Nigerian National Petroleum Company Limited.

This seems to be the case as NNPCL on Saturday refuted claim that it was Dangote Refinery’s Petrol sole buyer.

Recall that NNPCL, in a statement by its spokesperson, Olufemi Soneye, on Saturday clarified that the state-owned oil firm will not be the sole buyer of Dangote’s petrol.

NNPCL’s clarification came in response to Muslim Rights Concern, which claimed that the Dangote refinery was being undermined by the NNPCL.

Specifically, MURIC said the recent petrol pump price hike by NNPCL retail outlets to N897 from N617 per liter was to stop Dangote Refinery from offering PMS at lower prices.

However, NNPCL clarified that DRL prices are determined by global market forces, noting that the firm’s recent pump price hike has no impact on the refinery.

“If current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.”

NNPCL stressed that Dangote Refinery is free to sell its PMS to marketers.

However, the position contradicts Aliko Dangote, the President of Dangote Refinery, last week while announcing the rollout of the refinery’s petrol.

Dangote had said the rollout of his petrol was dependent on NNPCL.

According to him, Dangote Petrol “will be ready in 48 hours, depending on NNPCL.”

Meanwhile, NNPCL’s recent statement that “it will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria”, poses a significant challenge to 650,000 barrels per day refinery.

The challenge of who will buy Dangote Refinery’s petrol lingers. Although NNPCL had earlier announced that it would lift petrol from Dangote Refinery on September 15, 2024, the latest statement leaves Nigerians with more anxiety.

Recall that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, last week while speaking at the Brekete Family Live show, said that Dangote petrol would be exported if the NNPCL and other petroleum dealers in the country refused to patronize it.