Felicia Udeji ReportingÂ
The much anticipated Dangote Petroleum Refinery has finally commenced petrol production, but the company’s president, Alhaji Aliko Dangote, has revealed that the Nigerian National Petroleum Company Limited (NNPC) will control the price of the product.
Speaking to newsmen at the launch of the refinery’s Premium Motor Spirit (PMS) in Lagos, Dangote said, “I can’t say anything about the pricing because we don’t control the pricing; the pricing, at the moment, is controlled by NNPC, not Dangote. We will wait for them.”
When asked about the expected price of the petrol, Dangote stated, “Our PMS can be in filling stations within the next 48 hours depending on NNPCL. On the pricing, I can’t say anything because we don’t control the pricing; the pricing, at the moment, is controlled by NNPC, not Dangote.”
He also added that the Federal Executive Council was working on a new pricing arrangement for petrol produced from the Dangote Refinery.
“It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
This is even as the Dangote oil refinery announced its determination to supply 25 million litres of PMS daily in September.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed surprise at the development, saying they had expected Dangote to open up the market for proper competition.
“We have not received any notice about its PMS price because he categorically stated that the NNPC is the sole off-taker of the product, which to us came as a surprise,” said Ukadike Chinedu, National Publicity Secretary of IPMAN. “This shows that all these while the NNPC has been waiting for Dangote to release products, as it had reduced PMS importation.”
Chinedu added, “However, we are still waiting for them to tell us the price, but this, of course, will have its effect on the pricing of the product considering the fact that the cost of the commodity has increased at NNPC retail stations.”
Truth Live News earlier reported an increase in the pump prices, from around N600 to N855/litre, M918/litre and above, depending on the area of purchase at NNPC stations nationwide.
It was gathered that the recommended petrol prices vary by location.
It was confirmed on Tuesday that NNPC outlets in Lagos increased their price to N855/litre.
Some filling stations in Ibadan, the Oyo State capital, adjusted their pump prices upward, dispensing petrol at N1,000 and N1,100/litre, with long queues of vehicles.
The North West filling station in Onigbongbo, Lagos sold at N1,200- N1,400/Litre.
A filling station attendant who preferred to remain anonymous said,
“We are forced to increase our price because the cost of the product has increased, we are not sure how long we can sustain this price, but for now, we have to adjust to the new reality.”
Black marketers sold the product at N2,000/litre on Tuesday in Lagos.
The Organised Private Sector (OPS) has warned that the hike in petrol price, which signals the removal of subsidy on the commodity, would lead to another round of inflation nationwide.
“The OPS is worried about the implications of this hike on the already struggling Nigerian economy,” said Dr. Taiwo Adebayo, Chairman of the OPS. “We urge the government to consider the plight of Nigerians and find alternative solutions to address the subsidy issue.”
According to the president of Dangote Refinery, Alhaji Aliko Dangote, the new product is expected to end the fuel scarcity. However, the timing of the refinery’s launch and the subsequent price hike have raised questions about the underlying factors contributing to the scarcity. Was the scarcity a natural consequence of market forces, or was it a calculated move to pave the way for a new price regime? Only time will tell.