Tinubu reportedly blocks Dangote Refinery from selling petrol at affordable price
The Bola Ahmed Tinubu presidency has said that Dangote Refinery will not sell its products, including Premium Motor Spirit (PMS) popularly known as petrol, below the official market prices.
On Tuesday, Aliko Dangote, the Chairman of the Dangote Group, formally declared the commencement of petroleum production at his highly anticipated refinery. This significant milestone marks a major breakthrough in Nigeria’s energy landscape.
During the announcement, Mr. Dangote revealed that the pricing strategy for the refined petroleum products would be determined through collaborative efforts between the Federal Executive Council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited.
This decision underscores the government’s regulatory oversight and the NNPC’s industry expertise.
In a related development, filling stations owned and operated by the Nigerian National Petroleum Company (NNPC) Limited across Nigeria had implemented a substantial increase in fuel prices, with prices soaring to over N850 per litre.
This price hike was, according to Sahara Reporters, actually in compliance with a directive issued by the NNPC management, mandating an immediate adjustment of the official fuel price from N568 to N855 per litre.
This directive has far-reaching implications for consumers and the national economy.
However, a report published by Bloomberg on Thursday revealed that the Nigerian Government would allow Dangote Refinery to fix its price.
“Nigeria will allow Dangote to set the price of gasoline to petroleum marketers starting next month,” top government sources were quoted by Bloomberg.
“Going forward, petrol marketers will be allowed to buy products directly from the Dangote Refinery,” the sources added.
Commenting, the senior special assistant (SSA) to President Bola Tinubu on Media and Publicity, Temitope Ajayi also said, “Dangote Refinery will certainly not sell their products below market value as a business that was set up to make a profit.
“I don’t see how NNPC or the federal government will control the price for a private business.”
“The role of the petroleum industry regulator will be to ensure product quality and fair pricing so that the business doesn’t take undue advantage of the citizens or rip them off,” he added.
