By Willy Okonji
Billionaire industrialist Aliko Dangote has weighed in on the growing debate about the pricing of petrol from his newly operational refinery.
Speaking in an interview with Bloomberg Television in New York, the Chairman of Dangote Group addressed concerns after the Nigerian National Petroleum Company Limited (NNPCL) revealed it paid N898 per litre to lift petrol from the Dangote refinery.
Dangote clarified that petrol from his refinery is significantly cheaper than imported fuel.
“Our petrol is about 15% to 20% cheaper than the imported version,” he said, responding to the pricing controversy. He emphasized that the last transaction with NNPCL was based on international market rates, but the pricing announced by the state-owned company was not an accurate reflection.
“NNPC bought from us on September 15, 2024, at international prices while also importing around 800 metric tons of gasoline. The gasoline they purchased from us was cheaper than what they imported,” Dangote stated, adding that NNPC’s public announcement of N898 per litre may have included additional costs, profits, and other factors.
He suggested that the NNPC should adopt a “basket price” or officially remove the fuel subsidy. “What they should do is sell at a basket price, or, if they want to remove the subsidy, they should do so and make an official announcement, which would be fine,” Dangote explained.
Dangote also revealed progress in negotiations with the federal government, announcing plans to supply crude oil in Naira.
“We have already reached an agreement to supply about 12 million barrels of crude oil in Naira. Starting this October 2024, we will produce approximately 309 barrels per day of gasoline, diesel, and aviation fuel for resale to Nigerians, while the surplus will be exported,” he explained.
As operations ramp up, Dangote mentioned that 50% of petrol stations that were previously out of service will resume operations, reducing the cost of idling ships in neighboring countries and saving over $1 billion in demurrage fees.
