Dangote Refinery Pricing No Below-Market Fuel Sales, Says Presidency

The Nigerian Presidency has announced that Dangote Refinery will not sell its refined fuel products below market prices. This declaration, coming as Aliko Dangote’s highly anticipated refinery officially begins operations, marks a pivotal moment for Nigeria’s energy sector.

Dangote, the Chairman of the Dangote Group, revealed that the pricing of the refinery’s products, including Premium Motor Spirit (PMS), will be set through collaboration between the Federal Executive Council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited. This decision reflects the government’s regulatory role and the NNPC’s industry expertise.

Recent reports indicate that filling stations operated by NNPC have significantly increased fuel prices, with rates climbing to over N850 per litre. This adjustment aligns with a directive from NNPC management, which raised the official fuel price from N568 to N855 per litre, impacting consumers and the national economy.

READ ALSO:Man Allegedly Kills Grandfather and Uncle for Money Ritual in Ibadan

Contrary to these increases, Bloomberg reported that the Nigerian Government plans to allow Dangote Refinery to set its own fuel prices starting next month. The refinery will sell directly to petroleum marketers, establishing its pricing strategy in the market.

Temitope Ajayi, Senior Special Assistant to President Bola Tinubu on Media and Publicity, affirmed that Dangote Refinery will not undercut market prices. Ajayi emphasized that while the federal government cannot control pricing for private businesses, the role of the petroleum industry regulator will be to ensure product quality and fair pricing, preventing exploitation of consumers.

READ ALSO:Nigerian Brothers Jailed for Sextortion of Over 100 U.S. Citizens

This development underscores the ongoing changes in Nigeria’s energy landscape and the balancing act between market forces and regulatory oversight.