…As NNPCL increases price of petrol to N897 per litre
By Emeka Okoroanyanwu
As Dangote Refinery rolls out premium motor spirit (petrol) today from its 650000 barrels per day capacity facility, Chairman of Dangote Group. Aliko Dangote has told the world that petroleum products from the refinery are now ready for the market.
This is even as the NNPCL announced today an increase in the pump price of petrol.
According to NNPCL, a litre of petrol will now sell at N897.
This is over 37% from the N617 per litre being sold by the organisation before.
Showcasing a sample of the product in a white plastic bottle today, Dangote said the commencement of sale of the product will save Nigeria over 40 per cent of the current foreign exchange being spent at present.
According to him, the company will start the sales of polymer products next month.
It is learnt that NNPC Limited (NNPCL) will be the initial purchaser of Dangote’s products, with its officials already stationed at the Lagos petrochemical plant to take delivery.
NNPC is expected to be the exclusive buyer of Dangote’s products due to its current challenges in meeting international debt obligations to global oil traders.
The rollout of petrol by Dangote Refinery marks a historic milestone in Nigeria’s oil and gas sector, as the country, which has long relied on petrol imports, takes a significant step towards self-sufficiency.
With a production capacity that not only meets domestic demand but also allows for exports to neighbouring countries, Dangote Refinery is poised to end Nigeria’s dependence on imported petrol.
Nigeria currently consumes about 35 million liters of petrol daily, while Dangote Refinery, once fully operational, can produce at least 100 million liters per day.
Although the refinery has faced various challenges and delays in the past, including supply issues with NNPCL and international oil companies (IOCs), these issues were eventually resolved through the intervention of the Nigerian Upstream Petroleum Regulatory Commission and other key stakeholders.
The Federal Executive Council further supported the project by offering an arrangement that allows Dangote Refinery to purchase crude oil in local currency and sell petrol in the same currency, thereby easing pressure on the foreign exchange market.
