The Nigerian government has initiated discussions regarding petrol pricing from the Dangote Refinery, which is set to commence petrol production in September.
A committee established by the federal government is evaluating whether subsidies will be implemented for petrol sourced from this facility.
Officials from the committee, under the leadership of Finance Minister Wale Edun, have indicated that forthcoming meetings will focus on determining the pricing framework for petrol from the $19 billion refinery.
This initiative aims to ensure that crude oil sales to local refineries are carried out in Nigerian naira, which is part of a broader strategy to enhance local production and reduce reliance on imports.
Reports suggest that the pricing of petrol from the Dangote Refinery may exceed current market rates, which range from N600 to N700 per litre, depending on the region.
Oil marketers have expressed concerns that without government intervention, it may be difficult for dealers to procure petrol from the refinery.
The Major Energies Marketers Association of Nigeria (MEMAN) has reported that the landing cost of petrol is approximately N1,117 per litre, indicating that the price from the Dangote Refinery should align with this figure.
The Nigerian National Petroleum Company Limited (NNPCL), the sole importer of petrol, has been covering the price differentials for imported products, which has included a subsidy arrangement.
As the Dangote Refinery prepares to enter the market, it is positioned as a significant player in Nigeria's oil sector, with the potential to transform the landscape of fuel availability and pricing in the country.
However, the success of this venture will depend on effective negotiations and the government's approach to subsidy payments, which could influence the affordability of petrol for Nigerian consumers.
