The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has stated that following the Nigerian National Petroleum Corporation Limited (NNPC) officially lifting refined petrol from the Dangote Petroleum Refinery, the federal government is giving relevant parties a chance to reduce the cost of petrol.
Wale Edun disclosed the reason on Sunday, September 15, 2024, in an interview with Channels Television monitored by Nairametrics.
The petrol lifting from Dangote Refinery aligns with the federal government’s statement that the refinery would begin distributing petrol to NNPC on September 15, 2024.
FG giving oil stakeholders a chance
Responding to widespread queries about the petrol pricing issue, Edun began by congratulating Alhaji Aliko Dangote of Dangote Refinery and Petrochemical Company, NNPC, led by the group CEO, Mr. Mele Kyari, the Ministry of Finance, and the Chairman of the Federal Inland Revenue Service (FIRS) for their respective contributions thus far.
He expressed the view that Nigerians can look forward to energy security and energy sufficiency, adding, however, that relevant stakeholders “can also address the issue of cost.”
Edun predicted that with sustained local petrol distribution, the fuel pump price will ultimately reduce. He added that since today marks the commencement of petrol lifting from the Dangote Refinery, the federal government must give relevant oil stakeholders a chance to reduce petrol prices.
He said, “We’re expecting that as this refinery, and even others, ramp up production, scale, and achieve greater economies of scale, there should be the opportunity—and there is definitely the potential—to reduce their costs, which should be passed on to the consumer.
“So, we have to give them a chance. They have just started, and they have done very, very well.”
“It’s a triumph for Alhaji Aliko Dangote, it’s a triumph for Mr. President, above all, but it’s also a very good day for Nigerians, and we look forward with optimism. Thank you.”
What You Should Know
Prior to the commencement, Femi Soneye, Chief Corporate Communications Officer (CCCO) of NNPC Ltd, disclosed on Saturday that by the end of the day, at least 300 trucks would be stationed at the refinery’s loading gantry in preparation for the scheduled petrol loading on Sunday, September 15.
- The Dangote Refinery has officially begun distributing refined petrol to the Nigerian National Petroleum Corporation Limited (NNPC), signalling a major step forward in the refinery’s operations and its role in Nigeria’s energy sector.
- This development follows months of anticipation and marks a significant milestone in the collaboration between the Dangote Refinery and NNPC. Another key milestone is set to take place in just two weeks.
- On Friday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), announced that the federal government had finalized all agreements and modalities for the sale of crude oil to local refineries in Naira, as well as the corresponding purchase of petroleum products.
- This announcement followed a Technical Sub-Committee meeting on the subject, signaling a new phase in Nigeria’s energy strategy.
From October 1, the Dangote Refinery is expected to receive 385,000 barrels per day (BPD) of crude oil from the NNPC, with both crude oil and petroleum products to be paid for in Naira.
Additionally, all related regulatory costs, including those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira, further emphasizing the shift towards local currency transactions in the energy sector.
By early September 2024, NNPC stations in Lagos raised prices to N855 per litre, with some outlets selling as high as N897, while independent stations charged between N1,000 and N1,100 per litre across Lagos, with higher rates in other regions.
