The Nigerian National Petroleum Company Limited (NNPC Ltd) has called on the Dangote Refinery to disclose the actual price at which it is selling petrol to the NNPC. This challenge comes after NNPC’s earlier claim that the Dangote Refinery was selling petrol at N898 per litre was denied by the refinery.
In a recent development, Olufemi Soneye, Chief Corporate Communications Officer of NNPC, asserted in an interview that the petrol being trucked from the 650 barrels per day Dangote Refinery in Lagos was priced at N898 per litre. However, Dangote Refinery, through a statement by its Group Chief Branding and Communications Officer, Anthony Chiejina, refuted this claim, describing it as misleading and mischievous. Chiejina stated that Nigerians should wait for an official announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries. This committee, appointed by President Bola Ahmed Tinubu, will begin operations on October 1.
Despite the denial, Dangote Refinery did not specify the price it is selling petrol to the NNPC. However, it confirmed that it purchased its current crude stock from the NNPC in dollars and is selling the refined product back to the company in dollars. This adds a layer of complexity to the ongoing price dispute.
Soneye, however, remains firm in his stance. He reiterated to Premium Times that the NNPC bought petrol from the Dangote refinery at N898 per litre. He challenged the refinery to reveal the actual price if the figure he mentioned was incorrect. “If the price isn’t N898, then what is it? We would be happy to receive a discount,” Soneye remarked.
He pointed out the confusion surrounding the petrol price, noting that various figures have been circulating, ranging from N500 to N1,300. Soneye clarified that the government and NNPC Ltd do not set fuel prices as it’s a deregulated market where prices are determined by market forces. “Let them tell you their price. I stand by my earlier comment. Will you allow customers to carry your product without a price agreement?” he questioned.
The NNPC also issued a statement confirming that it is paying Dangote Refinery in USD for the September 2024 petrol offtake. It clarified that Naira transactions for crude oil sales and refined product purchases between NNPC and Dangote Refinery would only commence on October 1, 2024, as per the Petroleum Industry Act (PIA).
The company assured the public that any discounts from Dangote Refinery would be passed on entirely to consumers, aiming to dispel any misunderstandings about the pricing. The NNPC also attached the estimated pump prices of PMS across its retail stations in the country, based on September 2024 pricing.
Meanwhile, the Dangote Group announced that trucks from the NNPC Ltd have started transporting petrol from the refinery located in Ibeju-Lekki, Lagos. During a visit to the refinery, a Federal Government delegation led by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, hailed this development as a significant step towards revitalizing Nigeria’s domestic refining capabilities and reducing import reliance.
“This marks Nigeria’s return to local refining and supply of petroleum products, a significant milestone after decades of import reliance,” Edun stated. He also emphasized the benefits of this initiative in alleviating persistent fuel scarcity and long queues at gas stations, aligning with President Bola Tinubu’s vision of adding value to raw materials before export.
Edun further acknowledged President Tinubu’s pivotal role in facilitating the supply of crude to local refineries in Naira and commended Aliko Dangote, President of Dangote Industries Ltd., for his commitment to the refinery project. The establishment of the refinery strengthens Nigeria’s energy security and supports the government’s policy of promoting domestic investment in the refining sector.
