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See the Amount Dangote Refinery Supply Petrol to NNPC per Litre

Published by Tope Fakinlede on September 15th, 2024.

See the Amount Dangote Refinery Supply Petrol to NNPC per Litre

Dangote Maintains Africa’s Richest Man, Becomes $20m Richer

The Dangote Refinery is set to provide petrol to the Nigerian National Petroleum Corporation (NNPC) at a price of ₦766 per litre. This information was confirmed by several sources from the Federal Ministry of Petroleum Resources, NNPC, and prominent energy marketers.

Sources have indicated that this agreement, involving the sale of crude to the Dangote refinery in local currency, resembles previous Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) arrangements between NNPC and international refineries. This deal is believed to have positively influenced the petrol price offered by Dangote to NNPC.

An anonymous major marketer informed Sunday PUNCH that while the petrol price from Dangote is around ₦766 per litre, the final retail price set by NNPC to other marketers is still uncertain.

A senior aide to President Bola Tinubu also verified that the petrol price will be ₦766 per litre. According to an official from the Independent Petroleum Marketers Association of Nigeria (IPMAN), if marketers procure the petrol at ₦766 per litre, they will likely add costs for transportation, levies, and other expenses. As a result, the retail price could be around ₦790 in Lagos and possibly ₦820 in northern regions due to transportation distances.

Gillis-Harry of IPMAN noted that, although his group was not aware of the specific pricing from the Dangote refinery, the lower price compared to the current ₦870 per litre from NNPC is advantageous and preferable.

In related news, NNPC announced it has dispatched 300 trucks to the Dangote refinery to collect petrol. Olufemi Soneye, the spokesperson for NNPC, stated that this action aligns with the agreement between NNPC and the Dangote facility, which is based in Lekki and has an estimated cost of $20 billion.