The price of petrol produced by the Dangote Petroleum Refinery, as released by the Nigerian National Petroleum Company (NNPC) on Monday, could justify continued fuel importation into Nigeria, according to oil marketers.
Marketers indicated that shipments of imported petrol were expected to start arriving in Nigeria from today (Tuesday). They also called for more transparency in the pricing of petrol from the Dangote refinery.
This comes as the Organised Private Sector raised concerns over NNPC’s role as the sole off-taker of petrol from the $20 billion Lekki-based refinery, arguing that it could stifle competition in the market.
NNPC announced that petrol from the Dangote refinery would sell for over N1,000 per litre in northern states, with Borno State seeing prices as high as N1,019/litre, and in Abuja, Sokoto, and Kano at N999.22/litre. In the southern regions, the price would be lower, with N950/litre in Lagos and N960/litre in Oyo and Rivers.
NNPC clarified that petrol prices are not set by the government but are determined through arm’s-length negotiations. It also confirmed that it is currently paying Dangote Refinery in dollars for September 2024 offtake, with naira transactions set to commence on October 1, 2024.
Major oil marketers believe the high price of Dangote’s petrol will spur importation, with some marketers expecting PMS vessels to arrive by September 17. They also warned of potential price disparities across different stations, with prices reaching N1,200/litre in some areas, as customers will choose between lower prices with queues and higher prices for convenience.
This development raises concerns about transparency and availability in the allocation of products from the Dangote refinery.
