16th September, 2024
By Ayorinde Oluokun/Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) has challenged Dangote refinery to reveal the price it is selling the petrol being sold to it.
NNPCL made the challenge following denial of earlier claim of the company that the petrol now being trucked out from the over 650 barrels per day Dangote Refinery in Lagos was being sold at the price of N898 per litre.
Dangote had dismissed the claim made by Olufemi Soneye, the chief corporate communications officer of the NNPC in an interview with journalists.
However, while it described the claim by Soneye as misleading and mischievous, Dangote Refinery, in a statement by the company’s Group Chief Branding and Communications Officer, Anthony Chiejina, said Nigerians should wait for formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries.
The Committee appointed by President Bola Ahmed Tinubu will commence operations on 1 October.
However, Dangote Refinery failed to reveal how much it is selling petrol to the NNPC Ltd in the statement.
Nevertheless, Dangote said it bought its current stock of crude from NNPC in dollars and is selling the refined product to the company in dollars.
However, Soneye, insist in an interview with Premium Times that NNPC bought petrol from Dangote refinery at N898 per litre.
He challenged NNPC to reveal the ‘real price’ to Nigerians if the price he gave was wrong.
“If the price isn’t N898, then what is it? We would be happy to receive a discount,” Soneye said.
“Throughout the day, various figures have been circulating—some claiming N1,300, Punch reported around N767, and another outlet mentioned N500. It’s our responsibility to clarify the facts.
“The truth is, the government is not setting fuel prices, nor is NNPC Ltd. It’s a deregulated market where prices are determined by market forces.
“Let them tell you their price. I stand by my earlier comment. Will you allow customers to carry your product without price agreement?” Soneye said early on Monday.
Also, the NNPC in a statement also it is paying dollars for the September 2024 petrol offtake from the Dangote Refinery.
The company added that the sale of crude oil and purchase of refined products transactions between NNPC and Dangote Refinery will only commence on 1 October.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by the government, but negotiated directly between parties on an arm’s length.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on 1st October 2024.” Mr Soneye said.
The NNPC Ltd assured that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 per cent to the general public.
“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing,” the statement said.
Dangote Group, in a statement on Sunday said that trucks from the Nigerian National Petroleum Corporation Ltd. (NNPCL) had begun transporting petrol from the refinery located in Ibeju-Lekki, on Sunday in Lagos.
Speaking during a visit to the refinery on Sunday, a Federal Government’s delegation led Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy described the development as a landmark moment that revitalises Nigerians’ confidence in domestic industrialisation and refining capabilities.
“This marks Nigeria’s return to local refining and supply of petroleum products, a significant milestone after decades of import reliance,” Edun said.
The minister, accompanied by Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee on Naira-based crude sales to local refineries, said that this initiative would ensure Nigeria’s energy security and independence.
He highlighted the benefit of alleviating persistent fuel scarcity and long queues at gas stations, aligning with President Bola Tinubu’s vision of adding value to raw materials before export.
Edun further acknowledged Tinubu’s role in establishing the free trade zone concept during his tenure as Lagos State governor.
“This achievement strengthens Nigeria’s energy security and supports the government’s policy of promoting domestic investment.
“President Tinubu’s vision was to ensure no raw material leaves Nigeria without added value. I commend President Tinubu for facilitating the supply of crude to local refineries in naira and for his role in this achievement,” he added.
Edun also commended Aliko Dangote, President of Dangote Industries Ltd., and his team for restoring Nigeria’s position as a producer of refined products, nearly three decades after the country ceased local refining.
He commended Dangote’s patriotism and unwavering commitment to bringing the refinery project to fruition despite initial doubts.
