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Dangote Refinery Starts Production, But Marketers Await Price

Dangote Refinery Begins Operations

The newly operational Dangote Petroleum Refinery in Lagos has commenced the production of petrol. The $20 billion refinery, the largest in Africa, started producing petrol on Tuesday.

NNPC as Sole Off-taker

However, the Dangote Group’s President, Aliko Dangote, announced that for now, only the Nigerian National Petroleum Company Limited (NNPC) will be able to buy the fuel from the refinery.

Independent Marketers Surprised

This decision has surprised independent petroleum marketers, who are represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN). IPMAN’s National Publicity Secretary, Ukadike Chinedu, said they expected Dangote to open up the market for competition.

“We haven’t received any notice about the price of petrol from the refinery because they said only the NNPC can buy it,” Chinedu said. “This is a surprise to us, as we expected Dangote to open up the market for competition.”

Uncertainty Over Petrol Prices

The price of petrol in Nigeria has been a major concern in recent months. The NNPC has been the sole importer of petrol, and the government has been struggling to keep prices low. The Dangote Refinery is expected to increase the supply of petrol and reduce the country’s reliance on imports.

However, the price at which the NNPC will sell petrol to independent marketers remains unknown. This uncertainty is likely to keep petrol prices high in the short term.

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