Mon Sep 16 15:21:22 UTC 2024: ## Dangote Refinery’s Petrol Fails to Deliver Cheaper Fuel Prices for Nigerians

**Lagos, Nigeria:** Despite hopes that the Dangote Refinery would bring down petrol prices, Nigerians are facing a stark reality: fuel will remain expensive. The Nigerian National Petroleum Company Limited (NNPCL) announced that it purchased petrol from the refinery at a staggering N898 per litre, a price significantly higher than the current market rate.

This revelation dashed hopes of cheaper fuel, as the NNPCL explained that various statutory and regulatory charges, including landing costs, distribution fees, and profit margins, would push the pump price to N950.22 per litre in Lagos. This price is expected to be even higher in other parts of the country, with the North-east facing a potential price of N1,019 per litre.

The Dangote Refinery has refuted the NNPCL’s claim of an N898 per litre purchase price, but it has not disclosed the actual price at which it sold the fuel. Experts have emphasized that market forces will continue to influence fuel prices, making cheaper fuel unlikely.

Aliko Dangote, president of the Dangote Group, acknowledged that the high cost of the dollar and the absence of subsidies would prevent the refinery from offering prices below current market rates. However, he assured Nigerians that the refinery would ensure ample fuel supply to meet national demand.

Prior to the Dangote Refinery’s operation, all petrol consumed in Nigeria was imported, with the NNPCL subsidizing prices. The current landing cost of imported petrol is reportedly over N1,200 per litre, making the NNPCL’s purchase from the Dangote Refinery appear less expensive, although still significantly higher than the current pump price.

Independent marketers have already begun selling petrol at prices exceeding N1,000 per litre, indicating that the fuel market is poised for a considerable price hike. While the NNPCL claims it is committed to passing on any potential discounts from the Dangote Refinery to consumers, the future of petrol prices remains uncertain.

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