Africa’s richest man, Aliko Dangote, on Tuesday confirmed that Premium Motor Spirit (PMS), commonly known as petrol, from his $20 billion Lagos-based refinery is ready for distribution, marking a significant development that promises to reshape Nigeria’s petroleum industry.
According to Dangote, the fuel could reach filling stations across the country within the next 48 hours, contingent on the operations of the Nigerian National Petroleum Company Limited (NNPCL).
However, Dangote’s announcement, made during a video interview by Channels Television, has sparked widespread anticipation, as he refused to put a price on the product.
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The introduction of petrol from Dangote’s refinery comes at a critical juncture for Nigeria. Since President Bola Tinubu declared an end to the petrol subsidy in May last year, the price of petrol has surged by over 400%, skyrocketing from N189 per liter to over N900. This drastic price increase has exacerbated inflation, putting additional strain on Nigerians already grappling with economic challenges.
Dangote’s refinery is widely seen as a potential game-changer, offering a local solution to the country’s fuel supply issues. However, when asked about the pricing of the new petrol, Dangote revealed that it would be determined by the Federal Executive Council, led by President Tinubu.
“It is an arrangement which is designed and approved by the federal executive council led by President Tinubu.
“As soon as it is finalized, once we finish with NNPCL, which can be today, can be tomorrow we are ready to roll into the market,” Dangote said.
Government’s Stance on Pricing
The announcement also comes amid swirling rumors that the Federal Government had directed NNPCL to increase petrol prices to N1,000 per liter. These claims were swiftly debunked by Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), who labeled the rumors as “baseless, malicious, and a deliberate attempt to incite public discontent.”
In a statement released by his Special Adviser on Media and Communication, Nnemaka Okafor, Lokpobiri stressed that the government had issued no such directive and emphasized that NNPCL operates as an independent entity under the Companies and Allied Matters Act (CAMA). He further clarified that the Ministry of Petroleum Resources does not interfere in NNPCL’s internal decisions, including pricing matters, urging the public to dismiss the rumors and rely only on verified information from official channels.
Current Market Realities
However, petrol prices remain high across the country. As of Tuesday, NNPCL retail stations had adjusted their pump prices to N897 per liter, up from N617. Independent marketers are selling petrol at rates ranging between N930 and N1,000 per liter, reflecting the ongoing volatility in the market.
This has buoyed speculation that the price of fuel from Dangote Refinery will be around N1,000 per liter.
A Milestone for Quality Assurance
On a more optimistic note, Dangote has declared today “a celebration day” for Nigerians, assuring the public that the petrol produced at his refinery will be of the highest quality, comparable to any in the world.
“You will not be having an engine issue, which a lot of us were having. It won’t happen at all. The quality here will match that of anywhere in the world; US, America, we will make sure nobody will beat us in terms of quality,” he said, offering a glimmer of hope to motorists and consumers weary of substandard fuel.
While this development is seen as a significant step in addressing the ongoing fuel crisis in Nigeria, the potential pricing of Dangote’s petrol remains a point of concern for many Nigerians, particularly as petrol stations across the country increase their pump prices to around N1,000 per liter. The question of pricing remains a significant concern, especially in light of the economic hardships already faced by the population.
Although the arrival of Dangote’s petrol could provide much-needed relief in terms of fuel availability and quality, the ultimate impact will depend on the final pricing decision by the Federal Executive Council and how it aligns with the economic realities facing the nation.