As Nigeria celebrates a significant milestone in local fuel production, a cloud of confusion hangs over the pricing of Premium Motor Spirit (PMS) from the Dangote Refinery. Both the Minister of Finance, Honorable Wale Edun, and the Nigerian National Petroleum Company Limited (NNPCL) have claimed they purchased petrol from the refinery at N898 per liter. However, Dangote Refinery has denied this, calling the claim both "misleading and mischievous." This back-and-forth has left Nigerians frustrated and questioning who to believe.
On Sunday, the country received its first locally-produced PMS from Dangote Refinery, which is expected to alleviate the persistent fuel scarcity that has plagued the nation. Wale Edun expressed optimism, stating, “We now have PMS that is sufficient for the whole of Nigeria. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.” He also noted that prices could decrease in the future as more local refineries come online, benefiting from economies of scale.
The NNPCL echoed these sentiments, confirming the N898 per liter figure. However, in a surprising twist, Dangote Refinery issued a statement, categorically denying selling PMS at that price. “This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today,” the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, said in a press release. He explained that the transaction was conducted in dollars, not naira, with substantial savings for NNPCL compared to imported fuel.
This dispute over pricing has deepened the frustration felt by Nigerians, who were already grappling with skyrocketing fuel costs and the removal of fuel subsidies. Many are demanding clarity as they struggle to cope with the economic realities of daily life. The conflicting statements between Dangote and NNPCL have only heightened the uncertainty.
Nigerians are now calling on President Bola Ahmed Tinubu to intervene and resolve the matter. As the figurehead overseeing the transition to local fuel production, his reputation is at stake. The public expects him to wade into the disagreement, ensure transparency in the process, and establish a clear, affordable price for PMS. The ongoing confusion threatens to overshadow the progress made with Dangote Refinery and risks further inflaming public discontent, which has been growing since the removal of the fuel subsidy earlier this year.
With both the government and private sector locked in this pricing dispute, Nigerians are left in the middle, bearing the brunt of economic hardship. Many believe that only decisive action from President Tinubu can restore public confidence and ensure the intended benefits of local fuel production are realized.
Dangote Press Statement
Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL. This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.
We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.
It should also be noted that we sold the products to NNPCL in dollars with significant savings against what they are currently importing. With this action, there will be petrol in every local government area of the country, regardless of their remote nature.
We assure Nigerians of the availability of quality petroleum products and putting an end to the endemic fuel scarcity in the country.
Anthony Chiejina
Group Chief Branding and Communications Officer
15th September, 2024
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