FG Set To Take Action Amid Fear That Dangote, Others May Hike Fuel Price To Over N1000 Per Litre

Indications have emerged suggesting that the Federal Government’s committee, established to facilitate the sale of crude oil to local refineries in naira, will also address the pricing of Premium Motor Spirit (PMS), commonly known as petrol, to be supplied by the Dangote Petroleum Refinery next month.

Officials from both the oil marketing sector and the Implementation Committee on crude oil sales in naira, led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, have confirmed that the committee will hold a series of meetings this week and in the coming weeks to discuss this matter.

The committee is expected to finalize a framework that will establish a benchmark for the price Dangote refinery will pay for crude oil in naira. Additionally, the Federal Government will need to decide whether to subsidize petrol from the Dangote refinery or allow it to be sold at market rates.

However, oil marketers have expressed concerns that the price of petrol from the Dangote refinery will likely be higher than current pump prices. They warned that it would be challenging for dealers to purchase the product from the refinery without government intervention.

Currently, petrol is sold at prices ranging from N600 to N700 per litre, depending on the location. According to data from the Major Oil Marketers Association of Nigeria, the landing cost of PMS is approximately N1,117 per litre. Marketers indicate that the price of petrol from the Dangote refinery will likely be close to this figure.

The Nigerian National Petroleum Company Limited (NNPC) remains the sole importer of petrol into the country, as other marketers have ceased imports due to difficulties in accessing U.S. dollars required for these transactions.