Report: Dangote refinery to determine petrol price from October

The Dangote Petroleum Refinery will determine the price of petrol from October, Bloomberg is reporting.

On Tuesday, Aliko Dangote, chairman of Dangote Industries Limited (DIL), officially announced the commencement of petrol production at his refinery.

Dangote had said the price of petrol from his plant would be determined by the federal executive council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited.

However, a Bloomberg report on Thursday, said the federal government is considering allowing the refinery to set the price of petrol it sells.

“Nigeria will allow Dangote to set the price of gasoline to petroleum marketers starting next month,” sources told the publication.

“Going forward, petrol marketers will be allowed to buy products directly from the Dangote Refinery.”

Also speaking, Temitope Ajayi, senior special assistant (SSA) to the president on media and publicity, told Bloomberg that Dangote will not sell the product below market price.

“Dangote Refinery will certainly not sell their products below market value as a business that was set up to make profit,” Ajayi said.

“I don’t see how NNPC or the federal government will control the price for a private business.

“The role of the petroleum industry regulator will be to ensure products quality and fair pricing so that the business doesn’t take undue advantage of the citizens or rip them off.”

Nigerians have been experiencing a petrol scarcity that has protracted for weeks with no sign of relief.

On September 3, the national oil firm increased the pump price of petrol to N855 across its retail outlets amid long queues at filling stations.

Earlier on Thursday, Adedapo Segun, executive vice-president of downstream at the NNPC, said the company will supply over 17.6 million barrels of crude oil to Dangote refinery between September and October.

Segun said the current petrol price does not still reflect market realities.

He said Nigeria should move towards market-reflective prices to promote competition.