Aliko Dangote, CEO of Dangote Refinery, recently addressed concerns surrounding fuel pricing in Nigeria, asserting that the petrol sold to the Nigerian National Petroleum Corporation (NNPC) was at a lower rate than the fuel NNPC imported. In an interview with Bloomberg TV in New York, Dangote elaborated on the circumstances surrounding the pricing.
He noted that when NNPC purchased petrol from Dangote Refinery, they were also importing approximately 800,000 metric tonnes of fuel simultaneously. According to Dangote, the petrol imported by NNPC was 15-20% more expensive than what they sourced from his refinery, contradicting public perceptions of the pricing.
Dangote explained that the transactions between Dangote Refinery and NNPC were based on international pricing norms. The fuel sold to NNPC was at a rate of N898 per litre, which he argued was not representative of the overall market price. He stated, “What they announced was likely what it cost them including profits and other factors, which has never been part of their pricing model before.”
He further clarified that while NNPC publicly disclosed the price of petrol, this figure did not accurately reflect the cost dynamics involved, particularly regarding their importation expenses. The discrepancies have led to public confusion about the pricing structure of petrol in Nigeria, especially given ongoing efforts to stabilize fuel costs for consumers.
In response to NNPC’s claims, the Dangote Group issued a statement emphasizing that the N890 per litre quoted by NNPC was not the true national price. They maintained that they sold the petrol at a significantly subsidized rate, given the context of their crude oil procurement, which involves purchasing from international suppliers in dollars.
Despite the challenges posed by global market fluctuations, Dangote reaffirmed that the refinery’s pricing remains competitive and advantageous for the Nigerian market. This clarification comes amid growing scrutiny over fuel pricing and the broader implications for Nigeria’s economy.
