AMID the scarcity of petrol products that has resulted in long queues being experienced in most filling stations across the country, refined petrol products from the Dangote Refinery are expected to hit the market in less than 48 hours.
Already, Dangote Refinery’s entrance into the market is disrupting market pricing as price adjustments are gradually being enforced by the Nigerian National Petroleum Company Limited (NNPCL) with a benchmark price currently put at N855 per litre.
Marketer sources have confirmed to The ICIR that they’re already affecting price increments following meetings with the various petroleum regulatory bodies.
“The NNPCL is selling to us major marketers at N765 per litre which they just effected today. That means price increment and we have to put our market price and sell. Movement from various parts of the country for the supply could see the price go up above N900,” a major marketer source told The ICIR after a meeting with the regulators.
The ICIR findings showed that price adjustments is being effected by other major marketers with some selling above N900 per litre.
Eterna filling stations in Kubwa (a satellite town in FCT) and Ammasco filling stations in the same Kubwa sells at N940 and N945 respectively, the ICIR authoritatively confirms.
Petrol pump prices have been selling above N1,000 in recent times as supply shortfall hit all the filling stations including the national oil company NNPCL.
The state-owned oil firm had repeatedly attributed the cause to logistics problems faced by the company.
On Tuesday, September 3, the chairman of Dangote Group, Aliko Dangote, said his refinery would start supplying refined petrol products to marketers as soon as his company finalises modalities with the Nigerian National Petroleum Company Limited (NNPCL).
“Our PMS (Premium Motor Spirit) can be in filling stations within the next 48 hours depending on NNPCL,” the billionaire businessman said.
Speaking of the pricing of petrol from his refinery, Dangote said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPCL, it can be today, it can be tomorrow, we are ready to roll into the market.”
He asserted that the quality the refinery would be churning out could match products anywhere in the world, including the United States.
“We will make sure that nobody will beat us in terms of quality,” Dangote said.
Recall, Dangote Refinery had begun the supply of diesel and aviation fuel to marketers in the country last year with his entrance stabilising the price at about N1,200.
The pump price of petrol has surged since the removal of subsidy in May 2023, from around N200 per litre to over N1,000 most filling stations are currently selling.
The ICIR reported on Tuesday that the Dangote Refinery would begin the supply of 25 million litres of petrol daily to the Nigerian market starting this month.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this Tuesday, September 3 in a statement.
The NMDPRA said the volume would rise to 30 million litres before the month’s end.
According to NMDPRA, the arrangement was reached with the Nigerian National Petroleum Company Limited (NNPCL) on local crude supply to the refinery, it stated.
“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.
“The refinery is now poised to supply an initial 25 million litres of PMS (petroleum motor spirit) into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA said on its X page.
The ICIR reports that the Dangote Refinery is 650,000 barrels per day nameplate in full capacity but has been finding it difficult to get crude oil, forcing the refinery to look to the United States and Brazil to get feedstock.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.