Report: Dangote Refinery to Set Petrol Prices Starting October

The Dangote Petroleum Refinery is expected to determine petrol prices in Nigeria from October, according to a recent report by Bloomberg. Aliko Dangote, chairman of Dangote Industries Limited (DIL), made the announcement following the official start of petrol production at the refinery earlier this week.

While the Federal Executive Council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited were initially thought to play a central role in determining petrol prices, sources close to the government revealed that the Dangote Refinery will now have autonomy in setting the prices it charges petroleum marketers. This decision marks a significant shift in how fuel prices are regulated in the country.

“Nigeria will allow Dangote to set the price of gasoline to petroleum marketers starting next month,” Bloomberg quoted unnamed sources as saying.

Temitope Ajayi, the Senior Special Assistant to the President on Media and Publicity, also confirmed that Dangote Refinery, a privately owned entity, will sell its products at market rates, prioritizing profitability. Ajayi emphasized that the refinery will not sell below market value, adding that government intervention is unlikely to dictate pricing.

“The role of the petroleum industry regulator will be to ensure product quality and fair pricing, so that businesses do not exploit consumers,” Ajayi told Bloomberg.

The new pricing model is expected to allow petrol marketers to purchase fuel directly from the Dangote Refinery, bypassing previous regulatory pricing controls. This development comes amid increasing calls from various groups for more transparent fuel pricing mechanisms in the country.