Nigeria to let Dangote Refinery control petrol prices

Nigeria is reportedly exploring the possibility of allowing billionaire Aliko Dangote’s refinery to determine the price of the gasoline it sells, sources familiar with the situation told Bloomberg.

Up until now, Nigeria, Africa’s largest oil producer, has relied entirely on imported gasoline, heavily subsidizing prices at a significant annual cost. However, things are set to change as Dangote’s enormous refinery near Lagos begins locally refining gasoline.

Starting next month, the government will reportedly allow Dangote’s refinery to set the price of gasoline sold to petroleum marketers, according to officials familiar with the situation. These officials requested anonymity as they are not authorized to speak publicly on the matter.

There has been growing curiosity about the fuel pricing from Dangote’s refinery, especially as Nigerians, in Africa’s most populous country, continue to face exorbitant fuel prices and widespread shortages.

The Dangote Group earlier refuted reports suggesting it set the pump price of petrol at ₦600 per litre for marketers nationwide.

Also, when asked about the refinery’s petrol pricing, Dangote said that the decision would ultimately rest with the Federal Executive Council under the leadership of President Tinubu.

“Dangote Refinery will certainly not sell their products below market value as a business that was set up to make profit,” said government spokesman Temitope Ajayi. “I don’t see how NNPC or the federal government will control price for a private business,” he said.

The role of the petroleum industry regulator “will be to ensure products quality and fair pricing so that the business doesn’t take undue advantage of the citizens or rip them off,” Ajayi said.