[BREAKING] Expect Price Crash: Dangote Petrol Ready For Roll Out, Only NNPC Authorised to Sell

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

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

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

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.

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.

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.

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

Legit 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.

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.