Financial Energy Review
… to upscale to 30 Million Litres In October….
The Nigerian National Petroleum Company Limited NNPCL) is to provide Dangote Refinery with at least cargoes of crude oil daily, while the Refinery will in return make available 25 million litres of Petrol daily.
This is part of the deal the NNPCL is said to have entered into with the Dangote Refinery and Petrochemical, a source to close the two parties told Business Standards.
The volume of the refined product will however be increased to 30 million litres by October. Nigeria Consumes over 40 million litres of petrol per day. The shortfall from the supply from Dangote Refinery would be made up from imports.
The Dangote refinery started production of petrol based on the assurance from the Federal Government that the NNPC will increase the price of petrol to a reasonable level for the company to make profit.
This prompted the NNPCL, on Tuesday morning, to adjust its pump price of the product by N250 to N855 per litre.
The ex-depot price for marketers is said to be N765, but by the time dealers’ margin, transport, and union fees are added to this figure, the pump price of other marketers will be between N800 to N950 per litre depending on the location one finds himself or herself
The Dangote Refinery commenced production of petrol and this petrol is expected to hit the Nigerian filling stations as soon the company finalized the necessary arrangements with the Nigerian National Petroleum Company.
The pump price was, however, increased to N855 per litre almost immediately after Dangote Refinery commenced production.
Aliko Dangote, President of Dangote Group thanked President Bola Tinubu, Lagos state governor, and other stakeholders for making this reality.
At a press conference, Aliko Dangote declared that “it’s a celebration day” for Nigerians.
He assured all citizens that they “are now going to have good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all.”
“The quality here will match that of anywhere in the world; US, America, we will make sure that nobody will beat us in terms of quality,” Dangote said.
‘We’ll Save Forex’
The refinery owner said as soon as his company finalises modalities with the Nigerian National Petroleum Company Limited (NNPCL), the product will hit the market.
“As soon as we finalise with the NNPCL, our product will start going into the market.
“We will help to restore industry and manufacturing. We will begin real import substitution, which is what we have, you know, saving foreign exchange, earning foreign exchange, which will stabilise the naira, and it will also help bring down inflation and cost of living,” he stated.
Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility in Lagos with 350,000 barrels a day.
The refinery initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.
The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.
