The Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery are engaged in intense negotiations over petrol pricing, with a wide gap existing between their offer prices.
According to insider sources, NNPCL is pushing for a subsidy-compatible pricing, while Dangote is advocating for a market-reflective pricing. However, both parties are aware of each other’s constraints and are seeking a middle ground.
The negotiations, which have stalled for over two weeks, aim to determine a mutually agreeable price and terms for Dangote to supply petrol to local marketers.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed the negotiations, stating that the company will be guided by its obligations under the Petroleum Industry Act (PIA) in agreeing to any price.
Dangote Refinery has begun producing petrol, but may export it due to low local patronage. The refinery currently exports 97% of its refined products.
Marketers have petitioned President Bola Tinubu over Dangote’s low diesel price of N900 per litre, which has affected their revenue and profit margins.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) wrote to President Tinubu, expressing concerns over the price cut.
Dangote Industries Limited’s Vice President, Devakumar Edwin, highlighted challenges facing the refinery, including crude supply shortages and low local patronage.
Edwin stated that the refinery may export petrol if local marketers are unwilling to buy.
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