Expect Price Crash: Dangote Petrol Ready for Roll Out, only NNPC Authorised to Sell

• Petrol from the Dangote Refinery is ready for a rollout into the Nigerian market after a successful test run
• Sources confirmed that the Nigerian National Petroleum Company Limited (NNPCL) will be the only authorised dealer of the product
• The Nigerian government is reportedly getting set to offset the differential in the price of petrol from the refinery in the form of a subsidy

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

The Dangote Refinery is set to roll out the sale of Premium Motor Spirit (PMS), known as petrol, into the Nigerian market.

The development comes a few days after the plant began the petrol production test run.

Dangote ready to sell petrol

Reports say industry sources confirmed that the product would be available in the market very soon.

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The sources disclosed that the Nigerian government and the refinery management were working out plans to circulate the product.

Punch reports that the Nigerian government is working out the sale and distribution of petrol from the $19 billion facility.

Only NNPC is authorised to sell petrol from Dangote

Per the report, only the Nigerian National Petroleum Company Limited (NNPCL) would be authorised to sell the product.

Legit.ng reported that the Nigerian government was getting set to offset a possible differential in the price of petrol from the refinery.

The government hinted that it may pay a subsidy on petrol from the plant, given that it may sell the product above the pump price of N600 per litre.

After several postponements due to crude supply challenges, the Dangote Refinery has set a timeline for releasing petrol into the Nigerian market.

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The development follows a series of meetings with the Nigerian government after the government mandated the country’s industry regulators begin selling crude to local refineries in naira.

Dangote may sell petrol above pump price

However, there are indications that the Nigerian government may subsidise petrol from the refinery, as the NNPCL has pegged the landing cost at N1,200 per litre.

A committee set up by the Nigerian government is already intensely negotiating crude oil sales to the $19 billion refinery and others in the local currency, beginning October 1, 2024.

The sources said the government believes Dangote will sell petrol above the pump price due to high production costs.

FG resolves issues of crude supply to local refineries

Nigerians have expected petrol from the refinery since June of this year, but it has been delayed due to the crude oil supply challenges.

The 650,000bpd capacity had been disputed with regulatory authorities, who accused the refinery of producing inferior petroleum products.

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“Petrol from my refinery looks clearer” Dangote gives date Nigerians will buy at filling stations

The Nigerian government intervened to resolve the dispute, authorising the sale of crude oil to local refineries in naira.

The Dangote Refinery also accused international oil companies (IOCs) of refusing to sell crude to local refineries.

NNPC increase petrol price from 617 per litre to 897 naira

The Nigeria National Petroleum Corporation (NNPC) has reviewed the price of Premium Motor Spirit (PMS) from 617 naira per litre to 897 naira.

This is coming despite the long queue Nigerians face just to buy fuel at petrol stations.

A lot of filling stations across Nigeria does not have the product to sell, while the few petrol stations that has are selling in high prices.

This led Nigerians into asking questions and seeking clarification on why the scarcity and increase in price of petrol.

Petroleum minister charges NNPC to sell petrol N1,000 per litre

Recall, Legit.ng earlier reported that the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, has said that the Nigerian National Petroleum Company Limited (NNPCL) must sell petrol above the landing cost to stop smuggling.

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“Debt to petrol suppliers”: NNPC finally explains real reason for petrol scarcity

Lokpobiri disclosed this at the 2024 Energy and Labour Summit in Abuja, pointing out that selling imported petrol below the landing cost motivates smuggling activities.

He disclosed that smuggling will continue if the national oil firm imports PMS and sells it to marketers at about N600 per litre.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng