As the Dangote refinery prepares to distribute petrol domestically, Nigerians are voicing growing concerns over the transparency of its pricing model. The refinery’s launch had sparked hope that locally produced petrol would lead to lower prices, cutting out costs associated with fuel importation.
However, these expectations were dashed when, on the same day as the refinery’s launch, the Nigerian National Petroleum Company (NNPC) Ltd. announced a significant increase in petrol prices—from N568 per litre to N896 per litre. This price surge shocked many Nigerians who had anticipated relief from the burdensome fuel costs, especially with local production now in place.
During the refinery’s inauguration, Aliko Dangote, chairman of the refinery, clarified that the pricing structure was still subject to approval by the Federal Executive Council (FEC). He explained, “The final decision on pricing is with the FEC under the leadership of President Bola Ahmed Tinubu. Once the agreement is reached, which is being actively worked on, we will be ready to distribute fuel, whether today or tomorrow.”
On the other hand, NNPC Ltd., through its spokesperson Olufemi Soneye, reiterated that the market for Premium Motor Spirit (PMS) had already been deregulated, and prices would now be dictated by market forces. NNPC Ltd.’s Executive Vice President, Adedapo Segun, emphasized that, under section 205 of the Petroleum Industry Act (PIA), the company now operates within a competitive market without direct government intervention in pricing.
This position, however, was disputed by Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, who stated that the PMS market is still regulated. “The market for petrol remains strictly regulated, and the refinery cannot set or adjust prices independently. This responsibility lies with the relevant government bodies,” Chiejina said.
The mixed messages from NNPC and Dangote have fueled confusion among Nigerians. Experts, including energy analyst Henry Adigun, have urged both entities to provide clearer details about how pricing decisions are made. Adigun argued that transparency is key, adding, “Nigerians deserve to know the terms of this arrangement. Without transparency, we are left guessing about crucial issues like fuel pricing.”
Adigun further highlighted the complexities in the fuel market, noting that NNPC Ltd. remains the sole importer of petrol and currently sets market prices. He suggested that Dangote might have discovered its production costs are higher than NNPC’s, raising the question: “Who will bear the subsidy costs if Dangote sells at a higher price?”
Concerns have also been raised regarding the lack of clarity on crude oil prices and exchange rates for the refinery’s operations. Adigun emphasized the need for more information on these factors to fully understand the true cost of petrol.
The Arewa Youth Assembly echoed these concerns, calling on Dangote to disclose its refining costs. Speaker Mohammed Salihu Danlami urged Dangote to be transparent, stating, “Nigerians need to know the actual cost of refining petrol to hold the right parties accountable. With estimates suggesting that refining costs exceed N800 per litre, the public deserves clarity.”
Danlami also criticized attempts to shift responsibility onto NNPC Ltd., insisting that as a private entity, Dangote should not defer to NNPC’s pricing structure. “Dangote is free to sell directly to marketers without relying on NNPC’s prices, and should take steps to offer Nigerians more affordable fuel.”
As the debate around petrol pricing continues, the uncertainty surrounding the refinery’s impact on fuel costs remains unresolved. For many Nigerians, the promise of cheaper, locally produced petrol will remain elusive unless all stakeholders provide transparent and comprehensive information.
