Dangote refinery to determine petrol price from October

There are indications that the Federal Government is contemplating granting Aliko Dangote’s refinery the authority to set Premium Motor Spirit, commonly known as petrol prices.

Nigerians have been facing a prolonged scarcity of Premium Motor Spirit (petrol)

for weeks, with no immediate relief in sight and on Tuesday the NNPCL jarked up the pump price of PMS.

A Bloomberg report on Thursday confirmed that the government is considering allowing the refinery to set the price at which it sells petrol.

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

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

On Tuesday, Aliko Dangote, chairman of Dangote Industries Limited, officially presented the first sample of petrol produced at his refinery.

Dangote announced that his refinery would meet the demands not only of Nigerians but also of sub-Saharan Africa.

He also disclosed that the Federal Executive Council is working on a new pricing arrangement for petrol produced from the Dangote Refinery.

He said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.

Earlier on Tuesday, Nigerians woke up to a sudden increase in fuel prices, with the pump price rising from around N600 to N855 per litre.

According to sources, a directive had been issued instructing retail outlets to adjust petrol prices upwards.

The directive revealed that NNPC Retail Management had approved a hike in the pump price of PMS.

This price surge comes just two days after the company acknowledged difficulties in importing fuel, citing an $8 billion debt.