Breaking: Dangote Refinery denies selling petrol to NNPCL at N898 per litre

The Dangote Refinery has denied selling petrol at N898 per litre to the Nigeria National Petroleum Company Ltd (NNPCL).

Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote Refinery issued the rebuttal on September 15, 2024.

The NNPC began loading PMS from the Dangote Refinery on Sunday, September 15, 2024, after months of delays due to pricing and other business details from the NNPC, as well as final work on the part of the refinery.

What NNPCL Said

Olufemi Soneye, Corporate Communications Manager of the company, stated that claims of buying PMS at N1,300 or N760 from Dangote were incorrect and that N898 was the current loading price.

He said, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N1,300 per litre or N760 is incorrect. For this initial loading, the price from the refinery was N898 per litre. The price is determined by market forces. It’s a deregulated market. I can also confirm, in response to inquiries, that we will receive 16.8 million litres.” 

Before operations began, Femi Soneye, Chief Corporate Communications Officer (CCCO) of NNPC Ltd, announced on Saturday that by the end of the day, at least 300 trucks would be positioned at the refinery’s loading gantry, ready for the scheduled petrol loading on Sunday, September 15.

What Dangote is saying

In response, Chiejina stated that the claim attributed to “NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to NNPCL” was both misleading and allegedly mischievous.  

He argued that it was deliberately aimed at undermining the milestone achievement recorded on September 15, 2024, in addressing energy insufficiency and insecurity, which has plagued the economy for the past 50 years.

He claimed that the refinery sold the products to NNPCL in dollars, resulting in significant savings compared to what they are currently importing.

“With this action, there will be petrol available in every local government area of the country, regardless of their remote nature. We assure Nigerians of the availability of quality petroleum products and an end to the endemic fuel scarcity in the country.” 

“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars,” he stated. 

More Insights

The positions of the two oil stakeholders have cast new controversy around petrol pricing as Nigerians seek a reduction in PMS prices.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said today that following the Nigerian National Petroleum Corporation Limited (NNPC) officially lifting refined petrol from the Dangote Petroleum Refinery, the federal government is giving relevant parties a chance to reduce the cost of petrol.

Edun predicted that with sustained local petrol distribution, the fuel pump price would ultimately decrease. He added that since today marks the commencement of petrol lifting from the Dangote Refinery, the federal government must allow relevant oil stakeholders a chance to reduce petrol prices.

He said, “We’re expecting that as this refinery, and others, ramp up production, scale, and achieve greater economies of scale, there should be the opportunity—and there is definitely the potential—to reduce their costs, which should be passed on to the consumer.  

“So, we have to give them a chance. They have just started, and they have done very, very well.” 

“It’s a triumph for Alhaji Aliko Dangote, it’s a triumph for Mr. President, above all, but it’s also a very good day for Nigerians, and we look forward with optimism.” 

Prior to the commencement, Femi Soneye, Chief Corporate Communications Officer (CCCO) of NNPC Ltd, disclosed on Saturday that by the end of the day, at least 300 trucks would be stationed at the refinery’s loading gantry in preparation for the scheduled petrol loading on Sunday, September 15.

The Dangote Refinery has officially begun distributing refined petrol to the Nigerian National Petroleum Corporation Limited (NNPC), signaling a major step forward in the refinery’s operations and its role in Nigeria’s energy sector.

This development follows months of anticipation and marks a significant milestone in the collaboration between the Dangote Refinery and NNPC.

Another key milestone is set to take place in just two weeks.