President, Dangote Group Aliko Dangote, on Tuesday revealed that the Federal Executive Council (FEC) is working on a new pricing arrangement for petrol produced from the Dangote Refinery.
The 650,000-barrel-per-day facility officially unveiled its refined petrol on Tuesday with Dangote announcing that product will be in filling stations in the next 48 hours depending on the country’s Federal Executive Council.
In June, Tinubu approved the sale of crude oil to the Dangote Refinery in naira, a move that is geared towards crashing the prices of domestically refined petroleum products.
Speaking on the retail price, Dangote stated, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”
“I will like to salute the people of Nigeria and the government of President Bola Tinubu for creating the environment for us to thrive and also achieve this monumental of giving energy to our people for growth, and prosperity.
“I want to thank President Bola Tinubu for creating this idea of Naira for crude and Naira for the product. Doing that will give a lot of stability to the Naira and remove 40 per cent of the demand for dollars. That’s not just it, there is a lot of round-tripping.”
The refinery, built by Africa’s richest man, billionaire Aliko Dangote, began operations in January, initially producing naphtha and jet fuel.
Gentechnews gathered that the Nigerian National Petroleum Corporation (NNPC), which has been struggling to meet local fuel demand, will be the sole buyer of the gasoline processed by the Dangote Refinery.
The NNPC disclosed on Sunday to be under severe financial strain, owing $6 billion to oil traders for supplies since January.
The debt burden has impacted its ability to maintain a steady supply of fuel in the local market, resulting in persistent fuel queues since July and a sharp 45% increase in fuel prices from the official rate of N617 ($0.3942), following the removal of subsidy May 29, 2023 by President Bola Tinubu.
Two days after it cried out that the burden of petrol price has pushed it into over $6 billion debt, the Nigerian National Petroleum Corporation, NNPC, Limited, on Tuesday morning, increased its pump price of fuel from N617 per litre to N897 per litre.This is an increase of over 45 percent.
Checks at NNPC Retail stations in Lagos and Abuja reflected the new fuel price.
The company’s Chief Communications Officer, Mr Olufemi Soneye, has said he was not aware of any price increase.
“I’m not aware of this. Thank you for reaching out. I have no comment on the matter at this time.
“If there are any updates, I will make sure to inform you. I appreciate your understanding,” he responded via WhatsApp.
However, an unconfirmed trending message on social media platforms had earlier hinted at the new fuel price.
The message read: “Good morning, all. This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/litre to N897/litre effective today, 3rd September 2024.
“Please, ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter. Thank you
