By 9jaeye 
In a significant development for Nigeria’s fuel sector, the Nigerian National Petroleum Company Limited (NNPCL) has confirmed that it purchased Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery at N898 per litre. This announcement marks the beginning of a new chapter in Nigeria’s fuel distribution landscape, with the Dangote Refinery now operational and supplying refined petrol to the national oil company.
The lifting of petrol from the Dangote Refinery, which boasts a capacity of 650,000 barrels per day, began on Sunday. This pivotal moment saw over 300 trucks from NNPCL arriving at the refinery located in Ibeju-Lekki, Lagos State, to collect the initial batch of refined petrol. This move is expected to alleviate the long-standing fuel supply issues in Nigeria, where reliance on imported fuel has been a persistent challenge.
The NNPCL has officially confirmed that the price at which petrol was purchased from the Dangote Refinery is N898 per litre. This pricing has sparked discussions among Nigerians, who had anticipated a more significant reduction in fuel costs due to local refining. Many had expected that with the elimination of international transportation costs, the price of locally refined petrol would be lower than the current rate.
Olufemi Soneye, the spokesman for NNPCL, addressed the recent speculation and clarified that contrary to some reports, the purchase price was not N760 per litre. The accurate price of N898 per litre has been officially confirmed, aligning with the current market dynamics and operational costs of the refinery.
A recent post on X (formerly Twitter) highlighted this confusion:
“I don’t know if it is only me, but I was confused when I read that the Dangote Refinery sold petrol to NNPCL at N898/litre. I had expected that since the fuel is now being refined locally, the product would be sold at a lower price, as the transportation costs from abroad would no longer apply. If anyone with more knowledge could clarify the situation, I would greatly appreciate it.” Credit to Bashir Ahmad
This sentiment reflects widespread public expectations that local refining should lead to reduced prices. However, the current pricing has led to questions about how much cost savings are being passed on to consumers.
The introduction of locally refined petrol at this price point is a critical step for Nigeria’s fuel sector. While the cost of N898 per litre may not meet the expectations of substantial savings, it represents a significant move towards reducing dependency on imported fuel and boosting local production capabilities.
As the Dangote Refinery continues to ramp up its operations, the impact on fuel prices and availability will be closely monitored. Nigerians are keen to see how this development will influence the broader fuel market and whether it will lead to more favorable pricing in the future.
The commencement of petrol sales from Dangote Refinery to NNPCL is a landmark event in Nigeria’s energy sector. While the confirmed price of N898 per litre has generated some debate, it marks a crucial step towards improving Nigeria’s fuel self-sufficiency. As the situation evolves, further updates on pricing and distribution will be provided to keep the public informed.
For ongoing updates on the Dangote Refinery and the Nigerian fuel market, stay tuned to our News.
By: Mike Ibiyemi of 9jaeye News.