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Why Dangote petrol will not be sold at FG’s regulated price

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When the multi-billion dollars Dangote Refinery eventually begins to refine and sell Premium Motor Spirit (PMS), the product will not be sold in line with the Federal Government’s regulated price.

Instead, Aliko Dangote plans to sell his petrol at export rate, even though focus will not be entirely on exportation.

Africa’s richest man and founder of the Dangote Group, Alhaji Aliko Dangote, made this disclosure himself when he recently gave the CBN Governor, Mr Godwin Emefiele, a tour of refinery facility.

He noted that it is the Government’s job to regulate the price of petrol, although he doubted if the Federal Government’s fuel subsidy will continue.

 “We are not here to concentrate on export but pricing of products depends entirely on the government. If there will be subsidy, which I doubt very much, that is the job of government not the job of Dangote to determine what the price will be. But price of our export is what we sell, which will depend on what the market is internationally, and locally if there will subsidy, the government will carry that responsibility and not us. Government has to engage us and see how they can find a mid-ground on that.” – Aliko Dangote

A multi-billion dollars refinery

Dangote Refinery, which so far has cost quite a lot of money, is expected to become one of the world’s biggest refineries upon completion.

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As Nairametrics reported, the billionaire owner of the project, Alhaji Aliko Dangote, mobilised over $4.5 billion for the project last year. And with that much money invested in a single project, it is not surprising that the refinery is expected to generate as much as $11 billion per annum.

In the meantime, there are currently as much as 26,000 people working on the project, Dangote said. Just last month, installation for the Fluid Catalytic Equipment commenced.

When it is completed in just a couple of years, the project is expected to generate jobs, generate foreign exchange, and revitalise the Nigerian oil and gas industry.

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