Aliko Dangote, President and Chief Executive of Dangote Group, has revealed that petrol produced by his 650,000 barrels-per-day refinery in Ibeju-Lekki, Lagos State, is about 15 percent cheaper than the petrol imported by the Nigerian National Petroleum Corporation Limited (NNPCL), Okay.ng reports.
In a recent interview with Bloomberg Television in New York, Dangote clarified the pricing differences after the rollout of gasoline from the refinery on September 15, 2024.
He explained that NNPCL purchased petrol from his refinery at a cheaper rate compared to the cost of their imported fuel, though the corporation issued a uniform price for both products.
“There wasn’t really a disagreement, per se. NNPC bought from us on the 15th of September at the international price; they also imported about 800,000 metric tons of gasoline. So the one that they bought from us actually is cheaper than the one they are importing,” Dangote said.
He pointed out that the pricing confusion arose from a public announcement made by Olufemi Soneye, NNPCL’s spokesperson, which did not accurately reflect the refinery’s pricing.
“The price he quoted wasn’t really the real price. What they have announced is most likely what it cost them, including profit and other expenses,” Dangote explained, noting that the imported fuel is 15 percent more expensive than what his refinery produces.
Dangote suggested that NNPCL should consider adopting a “basket price” or completely removing the fuel subsidy to allow the market to self-regulate. This, he argued, would give Nigerians a clearer picture of the actual costs involved and reveal the country’s true petrol consumption.
The billionaire also confirmed ownership of two oil blocks in the upstream sector, with production expected to commence in October 2024.
He reiterated his support for the Federal Government to end the fuel subsidy regime, asserting that its removal would benefit the country’s economy.
