Africa’s Richest Man Highlights Pricing Discrepancy Amid Ongoing Petrol Price Debate
Aliko Dangote, President of the Dangote Group and Africa’s richest man, has stated that the petrol produced at his Dangote Refinery is 15 percent cheaper than the fuel imported by the Nigerian National Petroleum Company Limited (NNPCL). Dangote made this claim during an interview with Bloomberg Television on Monday.
His remarks come in the wake of recent controversy over petrol prices in Nigeria. On September 15, 2024, NNPCL announced that it had purchased locally produced petrol from Dangote Refinery at N898 per liter. This led to a significant hike in petrol prices across the country, with prices at filling stations rising to between N950 and N1,100 per liter.
The price discrepancy sparked confusion and debate within the oil and gas sector, with many questioning the cost-effectiveness of locally refined petrol versus imported fuel. Dangote, however, clarified the situation, stating that while NNPCL had indeed purchased petrol from his refinery, the stated price was not reflective of the actual cost of the product. He explained that NNPCL’s quoted price included additional profit margins and other expenses.
“There wasn’t a disagreement, per se. NNPC bought from us on the 15th of September at the international price, which they also bought, about 800,000 metric tons of gasoline imported,” said Dangote. “So the one that they bought from us is cheaper than the one they are importing.”
He further emphasized that the imported petrol bought by NNPCL was nearly 15 percent more expensive than the product supplied by his refinery. According to Dangote, Nigerians are unaware of the true cost of fuel imports and the difference between imported and locally produced petrol.
Dangote suggested that NNPCL should consider adopting a “basket price” for selling fuel or, alternatively, announce the removal of fuel subsidies, a move he has previously supported.
Meanwhile, petrol marketers have revealed that they have been purchasing NNPCL’s imported petrol at an average of N870 per liter, further fueling the debate over the best approach to managing the nation’s fuel prices.
The Dangote Refinery, which began operations recently, is expected to play a significant role in reducing Nigeria’s dependence on imported fuel. However, the current price confusion highlights the challenges facing the country’s energy sector as it navigates the transition to more self-sufficient fuel production and supply.
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