FG Speaks on Fixing Prices for Dangote Refinery As Nigerians Anticipate Cheaper Fuel

FG Speaks on Fixing Prices for Dangote Refinery As Nigerians Anticipate Cheaper Fuel

  • The Nigerian government has cleared the air on talks that it plans to fix fuel prices for the Dangote Refinery
  • The refinery is anticipated to boost local refinery of petroleum products, potentially leading to cheaper and more stable fuel prices
  • The FG maintained that it will continue to promote a competitive market while protecting consumers from exploitation

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian government announced it will not fix prices for the new Dangote Refinery, leaving the company's rates to be determined commercially.

Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), gave the assurance.

Dangote refinery fuel prices
Nigerians await Dangote refinery fuel Photo credit: Bloomberg/contributor
Source: Getty Images

Speaking in Abuja during a meeting with key oil marketing companies, Ahmed stated that whatever price the company sells will affect the agreement between both parties.

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Dangote refinery prices

NMDPRA boss stressed that though the government was encouraging local refining of petroleum products to reduce imports, it would not compel oil marketers to buy from Dangote Refinery as the decision was commercial.

His words

“We reassured the marketers, emphasising that the Dangote Refinery represents a significant achievement for our country.
" In the past, we relied on imports for all our petroleum product needs, except for those supplied by modular refineries.
"As an oil-producing country, we at NMDPRA believe it's crucial to support our local industry. That's why we encourage our marketers to use our local refineries. However, it's ultimately a commercial decision between suppliers and clients. NMDPRA does not set prices or determine purchasing decisions.

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"It's up to the marketers to choose whether to buy from Dangote Refinery, and for Dangote Refinery to set its prices. As regulators, our priority is ensuring the nation's adequate supply."

Filling stations sell petrol at new prices

Earlier, Legit.ng reported that several filling stations nationwide have adjusted their pump prices in reaction to the scarcity.

In Lagos, some filling stations sell at N650 per litre, while in states such as Abia, it costs N700 to N750 per litre.

The scarcity is even worse in the northern part of the country, with reports of the black market selling a litre of fuel for as high as N2,000.

Source: Legit.ng

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