Dangote Refinery May Export Petrol

The Dangote refinery, Nigeria’s largest petroleum refinery, may be forced to export its Premium Motor Spirit (petrol) due to the Nigerian National Petroleum Company Limited’s (NNPC) refusal to guarantee the purchase of its product.

In a statement released on Saturday, NNPC spokesperson Olufemi Soneye said the company would only buy Dangote fuel if it was cheaper than the international market price.

This contradicts claims made by Dangote Group President Aliko Dangote, who stated that the refinery was waiting for NNPC to roll out its product.

NNPC has clarified that it will only fully offtake petrol from the refinery if market prices exceed pump prices in Nigeria.

The company explained that Dangote and other domestic refineries are free to sell directly to marketers on a willing buyer, willing seller basis, and that it has no intention of becoming a distributor in a free market environment.

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This development follows a press release by the Muslim Rights Concern (MURIC), which alleged that NNPC was undermining the Dangote refinery.

MURIC claimed that recent changes to petrol pump prices would prevent the refinery from offering lower prices and that NNPC had become the sole offtaker of all products from the refinery.

NNPC responded, “The pricing of petroleum products from any refinery, including Dangote Refinery Limited, is determined by global market forces.

“The recent changes in PMS prices have no impact on DRL or any other domestic refinery’s access to the Nigerian market.

“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.”