Details emerge on when Dangote refinery will set petrol prices

The Nigerian government has reportedly given the green light for Aliko Dangote’s refinery to determine petrol prices, starting from October.

This move marks a departure from the current practice where the state-owned NNPC Ltd. has been the sole price setter.

According to Bloomberg, the Dangote Refinery, located in Ibeju Lekki, Lagos, will begin setting prices for petroleum marketers, subject to oversight from the government to ensure product quality and prevent exploitation.

Government officials have emphasized that Dangote’s refinery will operate as a private business, focused on making a profit. “Dangote Refinery will certainly not sell their products below market value,” said Temitope Ajayi, a government spokesman.

The shift comes amid widespread gasoline shortages and substantial debts incurred by NNPC, which has disrupted supply. Thediscovererng.com reports that Dangote Refinery is projected to produce around 330,000 barrels of gasoline daily, potentially stabilizing the local market and reducing Nigeria’s dependency on imports.

As the Dangote Refinery begins to set prices, Nigerians will be watching closely to see how this change affects the cost of petrol at the pump.