NNPC confirms buying petrol at N898 per litre from Dangote Refinery as market forces influence domestic fuel prices. The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced
NNPC confirms buying petrol at N898 per litre from Dangote Refinery as market forces influence domestic fuel prices.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that it purchased petrol from the newly operational Dangote Refinery at N898 per litre. In an interview with *Premium Times* on Sunday, NNPC’s chief corporate communications officer, Olufemi Soneye, confirmed the transaction and emphasized that domestic fuel prices are driven by market forces. The purchase follows the refinery’s recent commencement of operations, with the Nigerian government designating NNPC as the exclusive buyer of its petrol production. Despite the refinery’s launch, experts caution that a significant reduction in fuel prices is not anticipated.
The Nigerian National Petroleum Company Limited (NNPC Ltd) confirmed on Sunday that it has bought petrol from the newly operational Dangote Refinery at N898 per litre. The company’s chief corporate communications officer, Olufemi Soneye, revealed the details in an interview with *Premium Times*, emphasizing that market forces are the primary determinant of domestic pump prices. He noted that fluctuations in global oil prices, such as Brent crude, would continue to influence fuel prices in Nigeria.
Soneye disclosed that the initial supply of 16.8 million liters from Dangote Refinery to NNPC was priced at N898 per litre. He also reiterated that changes in Brent crude oil prices would affect future costs. “If Brent crude goes from $70 to $80, the price will increase because those are the market forces,” he said.
Earlier this month, Dangote Refinery, which has a capacity of 650,000 barrels per day, commenced petrol production. Devakumar Edwin, vice president of Dangote Industries Limited, stated that NNPC would be the exclusive buyer of the refinery’s products. The Nigerian government confirmed on Friday that petrol loading from the refinery had begun, with NNPC trucks actively transporting fuel.
Experts, however, caution that the start of operations at Dangote Refinery will not necessarily result in a significant drop in fuel prices in Nigeria.
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, announced that NNPC would be the sole buyer of petrol from the Dangote Refinery. During a meeting on Friday, Edun, represented by Federal Inland Revenue Service Chairman Zaccheus Adedeji, confirmed that diesel from the refinery would be sold in Naira to any interested off-takers, while petrol would only be sold to NNPC. The government has completed the necessary agreements to implement the sale of crude oil to local refineries in Naira, with the aim of stabilizing fuel supply in the country.
