Foreign exchange rates and market forces would determine the cost of petrol from Dangote refinery – NNPC

As Nigerians anticipate the arrival of petrol from the $20 billion Dangote Petroleum Refinery, the Nigerian National Petroleum Company Limited (NNPC) has announced that it will begin lifting the product on September 15. However, NNPC has indicated that the price of petrol will be influenced by foreign exchange rates and market forces, given the deregulated nature of the market.

Currently, about 2,000 tankers are waiting at various depots in Lagos, Warri, and Port Harcourt to load the petrol. Meanwhile, the Federal Government has assured that a significant supply of petrol will be available over the weekend as vessels start unloading, but it has emphasized that petrol prices will not be fixed.

The NNPC noted that fluctuations in petrol prices are influenced by foreign exchange liquidity and market dynamics, in line with the Petroleum Industry Act. Adedapo Segun, NNPC’s Executive Vice President of Downstream, stated that the current fuel scarcity is expected to ease as more stations resume operations and adjust their systems.

Independent Petroleum Marketers Association of Nigeria (IPMAN) officials reported delays and uncertainty about additional costs at depots. The Dangote Group clarified that NNPC has not yet begun lifting petrol from its refinery and has not set any prices for it. Dangote will determine the product’s price based on market conditions.

NNPC has supplied 30 million barrels of crude oil to the Dangote refinery and plans to supply an additional 17 million barrels soon. The Federal Government is intervening by selling crude to Dangote in naira to ease foreign exchange pressures.

Minister of Petroleum Resources Heineken Lokpobiri assured that petrol availability would improve by the weekend and urged against panic buying. He confirmed that while the government is not fixing prices, it is committed to ensuring a stable supply of petrol and preventing arbitrary pricing.