Dangote refinery to supply petrol at N766 per litre

In a groundbreaking development, the Dangote Refinery has agreed to sell petrol to the Nigerian National Petroleum Company (NNPC) at a price of N766 per litre.

According to sources from the Federal Ministry of Petroleum Resources, NNPC, and major energy marketers, the deal was made possible by the agreement to supply crude to the Dangote refinery in naira.

This arrangement is similar to the Direct Sale of crude oil and Direct Purchase of petroleum products (DSDP) transactions that existed between NNPC and foreign refineries in the past.

The discounted price is expected to positively impact the downstream sector, with marketers anticipating a reduction in the final cost to consumers.

However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has noted that additional costs such as transportation, levies, and margins will still be factored into the final price.

“We can sell at N790 in Lagos, but in the far north, it may be N820 per litre due to the distance,” said a senior IPMAN official.

Meanwhile, we reported that over 300 NNPC trucks are currently stationed at the Dangote refinery, ready to begin loading petrol at any moment.

This development marks a significant milestone in Nigeria’s quest for energy self-sufficiency and reduced reliance on foreign fuel imports.