Dangote Refinery to Set Petrol Prices in Nigeria

The Federal Government has reportedly given the green light for Aliko Dangote’s refinery to set petrol prices, according to a report from Bloomberg.

Daily Report Nigeria reports that this development marks a departure from the current practice, where the state-owned NNPC Ltd. has been the sole price setter.

According to the report, the Refinery, located in Ibeju Lekki, Lagos, is set to begin setting prices for petroleum marketers starting next month, October.

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Earlier, the refinery began production of petrol with government officials indicating that Dangote’s refinery will determine its own pricing strategy, with oversight limited to ensuring product quality and preventing exploitation.

The shift comes amid widespread petrol shortages and substantial debts incurred by NNPC, which has disrupted supply.

Dangote Refinery is projected to produce around 330,000 barrels of gasoline daily, surpassing 1 per cent of global demand, potentially stabilizing the local market and reducing Nigeria’s dependency on imports.