Nigerians are hoping for a crash in petrol prices as the Nigerian National Petroleum Company Limited and independent markets commence lifting of petrol products from Dangote Refinery.
The cheery news followed an agreement between DRL and the presidential committee, which announced on Friday that state-owned oil company NNPC Limited will distribute petrol from the 650,000 barrels-per-day Dangote Refinery to the local market.
The news ended the face-off between the DRL, NNPCL and independent marketers, who have been trading tackles.
The $20 billion refinery, built by Nigerian billionaire Aliko Dangote in Lagos, began refining petrol last week. but disagreements over pricing created delayed distribution.
“I am glad to announce that all agreements have been finalized, and the first batch of Premium Motor Spirit (Gasoline) will begin loading on Sunday,” Zacch Adedeji, head of Nigeria’s tax authority, said.
Adedeji said that in exchange for crude oil, Dangote will supply gasoline and diesel of equivalent value to the domestic market, with transactions settled in the local naira currency.
The Nigerian government previously said it would ensure the supply of crude to Dangote in naira.
While Dangote’s diesel, which has primarily been exported, will now be sold to local fuel traders in naira, NNPC will have exclusive rights to lift gasoline and sell locally both in bulk to fuel traders and at its petrol.
Reuters reported that just 5% of local petrol dealers are patronizing the Dangote Refinery, which has limited its sales to just 29 tankers of diesel per day, an executive at the refinery said on Thursday.
The executive added that local fuel traders are struggling with the refinery’s retail pricing, which they claim is negatively impacting their businesses.
