Why NNPC adjusted petrol pump prices from Dangote Refinery

• The Nigerian National Petroleum Company Limited (NNPC) has begun the lifting of petrol from the Dangote Refinery
• The company increased petrol prices to N897 per litre the same day Dangote unveiled the product on the market
• Dangote has promised Nigerians that petrol from the refinery is of high quality and curb scarcity in Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

As of Tuesday, September 3, 2024, the Nigerian National Petroleum Company Limited (NNPC) tankers have begun lifting petrol from Dangote’s mega refinery in Lekki.

The refinery’s petrol production offers a new and potentially more efficient supply route for Nigeria’s petrol needs.

Chairman of the Dangote Refinery, Aliko Dangote, says petrol from the refinery will be available in 48 hours Credit: Bloomberg/Contributor
Source: Facebook

Refinery to meet the needs of Africans

Aliko Dangote, Chairman of Dangote Industries Limited, said the refinery can satisfy Nigeria's and Sub-Saharan Africa's petrol demand.

He disclosed that the refinery will also curb round-tripping in the Nigerian oil industry, showing the actual petrol consumption in Nigeria as the company can track every single-loaded truck.

Experts have disclosed that the facility will relieve Nigerians facing acute petrol scarcity.

Dangote assured us that petrol from the $19 billion refinery would be in filling stations within 48 hours.

He said the petrol was of high quality and that the refinery would reduce problems caused by dirty fuel, which causes engine failure.

Dangote to supply NNPC 25 million litres daily

According to a BusinessDay report, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said that the refinery will supply about 25 million litres of petrol to the Nigerian market daily, beginning in September.

The agency disclosed that the supply will rise to 30 million litres subsequently.

The NMDPRA disclosed that it met with the NNPC to agree on crude oil supply to local refineries in naira, including the Dangote Refinery.

Otedola praises Dangote’s doggedness

Meanwhile, Femi Otedola, Chairman of Geregu Power, said the successful operation of the Dangote Refinery could lead to the decline in relevance of local depots, which have relied on fuel imports to meet domestic needs.

Otedola disclosed on social media that he and Dangote formed the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries.

He said:

“The days of bowing to foreign powers for our fuel needs are over. You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery.” 

NNPC increases petrol prices

The development comes amid the increase in the pump price of petrol by the NNPC to N897 per litre on Tuesday, September 3, 2024.

This development comes as the Minister of State for Petroleum Resources, Heineken Lokpobiri, suggested that the NNPC increase petrol prices above the landing cost to curb smuggling in the country.

The commencement of petrol production by the Dangote refinery is timely, given the anguish of petrol scarcity endured by Nigerians.

Experts believe days of petrol scarcity are over

An energy policy expert, Adeola Yusuf, disclosed that Nigerians can purchase the Dangote refinery even though it will be sold at the market price.

“Dangote will sell the petrol at the prevailing market price, but the good news is that it will be available for purchase.“Currently, NNPC has told Nigerians that it is facing financial challenges hampering supply across the country. That may not happen with the Dangote refinery as the NNPC is a stakeholder in the firm. Nigerians should expect better days,” he said.

Marketers kick as Dangote names sole distributor

Legit.ng earlier reported that Edwin Devakumar, the vice president of Oil and Gas at Dangote Industries Limited, said that the Nigerian National Petroleum Company Limited (NNPC) will be the sole petrol buyer from the Dangote Refinery.

Devakumar disclosed on Monday, September 2, 2024, that the $19 billion refinery had begun a petrol production test run and would begin flowing into the tanks.

He said the facility is testing the product, which will begin flowing into the 600 million-litre tank. He said the NNPC is the sole distributor and would buy it exclusively, as the refinery will export it as it has done with aviation fuel and diesel.

Source: Legit.ng