Nigeria’s petrol prices could see a significant shift from October, with Dangote Petroleum Refinery playing a key role in determining market rates, according to a recent Bloomberg report. This development marks a potential move away from government-regulated pricing, as the federal government may allow the refinery to set its own petrol prices.
Bloomberg's sources revealed, “Nigeria will allow Dangote to set gasoline prices for petroleum marketers beginning next month.” This means that petrol marketers across the country will soon be able to buy directly from the Dangote Refinery at prices determined by the refinery itself, rather than government-controlled rates.
Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, confirmed this change, emphasizing that Dangote Refinery, as a profit-driven enterprise, would not sell its petrol below market value. Ajayi explained, "It is unlikely that the Nigerian National Petroleum Company (NNPC) or the federal government will control prices for a private business. The role of the petroleum regulator will be to ensure product quality and fair pricing, safeguarding citizens from being exploited."
This update comes on the heels of a statement made earlier in the week by Aliko Dangote, Chairman of Dangote Industries Limited. He announced that petrol production had officially begun at the refinery. Initially, Dangote had said that the pricing of petrol from his refinery would be managed by the Federal Executive Council (FEC) and the NNPC. However, the latest news indicates a shift toward market-driven pricing, which may impact how petrol prices fluctuate in the near future.
Nigerians have been facing a persistent petrol shortage in recent months, coupled with a sharp price hike by the NNPC, pushing the pump price to N855 per liter at its retail outlets. This has resulted in long queues at filling stations, frustrating consumers.
Meanwhile, Adedapo Segun, Executive Vice-President of Downstream at NNPC, shared that the company is preparing to supply over 17.6 million barrels of crude oil to Dangote Refinery between September and October. Segun also stressed that current petrol prices do not reflect the true market realities, advocating for Nigeria to embrace market-based pricing to encourage competition and stability in the oil sector.
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