By 9jaeye 
The Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) are currently in a pricing dispute over Premium Motor Spirit (PMS), commonly known as petrol. This issue has gained significant public attention, particularly after NNPCL began distributing petrol sourced from the newly operational Dangote Refinery.
In mid-September 2024, NNPCL announced it had lifted 16.8 million liters of petrol from the refinery at N898 per liter. However, Dangote Refinery quickly disputed this figure, describing it as misleading but did not provide an alternative price. Both sides have committed to fulfilling their supply agreement, but the price dispute has caused uncertainty among many Nigerians about the future of fuel costs nationwide.
Further complicating the issue, Dangote Refinery has been selling PMS to NNPCL in US dollars because the refinery’s feedstocks are currently dollar-denominated. This dollar-based transaction has raised concerns about the impact on Nigeria’s foreign exchange reserves, which are already under pressure. Starting October 1, 2024, a new deal will shift payments to naira under the “naira-for-crude, naira-for-product” agreement. This change aims to stabilize petrol prices and reduce the strain on Nigeria’s foreign exchange.
Despite these challenges, Dangote Refinery remains confident in its ability to meet Nigeria’s petrol demand. The refinery has also announced plans to export surplus products to other West African countries, boosting its regional influence. Many view this optimism as a potential solution to the country’s long-standing fuel scarcity issues.
As the pricing dispute continues to unfold, it is important to stay updated with official statements from NNPCL and Dangote Refinery. The outcome of this disagreement will likely have significant implications for Nigeria’s fuel prices and economic conditions.
For more details, you can follow updates at NNPCL Group and 9ja Eye