Historic Shift: Dangote Refinery Fuels Nigeria as NNPC Buys at N898/Liter:
The Dangote Petroleum Refinery has officially begun supplying premium motor spirit (PMS), marking a significant milestone in Nigeria’s energy sector. This development ends nearly 30 years of dependence on imports for a substantial portion of the country’s petrol needs. The $20 billion refinery, built by billionaire Aliko Dangote in Lagos, represents a transformative shift in Nigeria’s energy landscape.
As of Sunday, petrol from the Dangote Refinery began distribution nationwide, with the Nigerian National Petroleum Company (NNPC) purchasing the fuel at N898 per liter. This price disclosure was made by Olufemi Soneye, NNPC’s Chief Corporate Communications Officer. The refinery, equipped with 86 gantries for simultaneous truck loading, is expected to handle a significant volume of Nigeria’s petrol supply.
The refinery’s operations come at a crucial time, following a period of severe petrol scarcity in Nigeria. The NNPC plans to continue importing a shortfall of 15 million liters daily to meet the country’s total demand, estimated at 40-50 million liters per day.
The refinery’s strategy includes transitioning to sea transport to reduce logistics costs and enhance efficiency, aiming to handle 75% of its production by sea, with plans to increase this to 100%. This move is anticipated to reduce final costs for consumers significantly.
Despite this progress, challenges remain, such as managing the logistics of distribution and addressing concerns from marketers about the competitiveness of the pricing. However, the new domestic supply is a positive step toward stabilizing the petrol market in Nigeria.
Reactions from Nigerians:
- @oil_price_watch: “Great to see the Dangote Refinery finally operational. N898 per liter is a start, but we need to see how this impacts overall fuel prices and availability.”
- @lagos_businessman: “This is a game-changer for Nigeria. It’s about time we relied on domestic production. Let’s hope this ends the frequent fuel shortages.”
- @energy_analyst_ng: “The transition to sea transport is smart. Reducing logistics costs could lead to more stable fuel prices. Let’s keep an eye on the implementation.”
- @petrolconsumer: “N898 per liter from the Dangote Refinery seems reasonable. Hopefully, this helps stabilize the market and reduces the high cost of fuel.”
- @nigerian_marketer: “There are still issues to resolve with distribution and pricing. But the start of domestic supply from Dangote is definitely a positive development for the industry.
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