See more as Dangote breaks silence on price of petrol from refinery, faults NNPCL

• Aliko Dangote has cleared the air on petrol pricing from its refinery following an announcement from NNPCL
• NNPCL had announced that it bought petrol from the Dangote refinery at N898 per litre, which the Dangote group replied
• Dangote, the man behind the refinery success story, has stressed that petrol from his refinery is cheaper

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Aliko Dangote, the billionaire industrialist and Chairman of Dangote Group, has finally addressed the ongoing debate surrounding the pricing of petrol produced from his refinery.

Speaking in an interview with Bloomberg Television interview in New York, Dangote noted that petrol from his refinery is about 15% or 20% cheaper than imported petrol.

Dangote has provided clarification on petrol pricing from his refinery Photo credit: Victor J. Blue/Bloomberg
Source: Getty Images

Dangote comments are coming following the Nigerian National Petroleum Company Limited (NNPCL) announcement that it paid N898 per litre to lift products from the Dangote refinery.

Dangote agreement with FG

Dangote revealed that his companies are still negotiating with the federal government to reach an agreement on petrol pricing and energy security.

"We have already reached an agreement to supply about 12 million barrels of crude oil in Naira. Starting this October 2024, we will produce approximately 309 barrels per day of gasoline, diesel, and aviation fuel for resale to Nigerians, while the surplus will be exported."Once we begin operations, 50% of our petrol stations that have been out of service will become operational again. This will reduce the cost of ships idling around neighbouring countries, and we will save over $1 billion in demurrage fees alone."

Dangote clears the air on petrol pricing

Regarding the prices from his refinery, he explained that the last purchase from NNPCL was based on international pricing and faulted the pricing announcement.

His words:

'NNPC bought from us on September 15, 2024 at the international price, while also importing around 800 metric tons of gasoline. The gasoline they purchased from us was cheaper than what they imported."So, when NNPC announced our petrol price at N898 through their spokesman, I’m not sure if it was authorized, but it wasn’t the actual price. It may reflect their costs, but they included profit and other factors into the pricing. For the imported gasoline, no announcement was made, but I can tell you that ours was about 15% to 20% cheaper than what NNPC spent on importation."What they should do is sell at a basket price, or, if they want to remove the subsidy, they should do so and make an official announcement, which would be fine.'

Dangote Refinery accuses oil marketers of low patronage

Earlier, Legit.ng reported that Dangote Refinery raised concerns over the lack of patronage from Nigerian oil marketers due to low pricing strategies on its product sales.

Devakumar Edwin, Vice President of Dangote Industries Limited, disclosed this during an X Spaces session organised by Nairametrics.

According to Edwin, the refinery struggles to sell diesel and aviation fuel daily, so it has decided to export its products instead.

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Source: Legit.ng