Dangote Refinery to Set Petrol Prices from October

Nigerians may soon see a change in how petrol prices are set, as the Federal Government is considering allowing Dangote’s refinery to determine the price of Premium Motor Spirit (PMS), commonly known as petrol.

For weeks, Nigerians have been dealing with fuel shortages, with petrol prices continuing to rise. Just this Tuesday, the Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of petrol.

According to a report from Bloomberg on Thursday, the government is discussing plans to let the Dangote Refinery set the price of petrol starting next month. Sources told the publication, “Nigeria will allow Dangote to set the price of gasoline to petroleum marketers starting next month.”

This would mean petrol marketers can buy directly from the Dangote Refinery, rather than relying on the government for pricing.

Temitope Ajayi, a senior special assistant to the president on media and publicity, also confirmed to Bloomberg that Dangote will sell petrol at market prices. “The refinery was built to make a profit, so they will not sell below market value,” Ajayi explained. He added that the government’s role will be to ensure the prices are fair and the product quality remains high, to protect citizens from being overcharged.

On Tuesday, Aliko Dangote, the chairman of Dangote Industries Limited, officially presented the first sample of petrol produced at the refinery. He promised that the refinery would meet not only Nigeria’s needs but also supply other sub-Saharan African countries.

Dangote also revealed that the Federal Executive Council, led by President Bola Ahmed Tinubu, is working on a new pricing arrangement for petrol produced at his refinery.

Earlier the same day, Nigerians woke up to a sharp increase in petrol prices. The pump price jumped from around N600 to N855 per litre. Sources revealed that a directive had been issued, instructing petrol stations to raise their prices. NNPC Retail Management reportedly approved the hike, which came just days after the company cited difficulties in importing fuel due to an $8 billion debt.