As reported by Punch news, Aliko Dangote, renowned businessman and founder of the Dangote Group, announced on Tuesday that the Federal Executive Council (FEC) is poised to introduce a new pricing structure for petrol produced at the Dangote Refinery. This development comes as the refinery, with a capacity of 650,000 barrels per day, officially launched its refined petrol, which is expected to hit filling stations within the next 48 hours, subject to national logistics......Read The Full Article>>.....Read The Full Article>>
Dangote revealed that the new pricing arrangement is being finalized with the FEC, under the leadership of President Bola Ahmed Tinubu. He emphasized that the arrangement is designed and approved by the FEC, and once completed, the product will be available on the market almost immediately. “As soon as it is finalized, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market,” Dangote stated.
The pricing strategy follows President Tinubu’s approval in June for the sale of crude oil to the Dangote Refinery in naira. This policy aims to reduce the costs associated with importing refined petroleum products and is expected to significantly decrease the demand for foreign exchange. According to Dangote, this move will lower the demand for dollars by approximately 40 percent.
Dangote praised President Tinubu for introducing the concept of “Naira for crude and Naira for the product,” which he believes will stabilize the naira and mitigate the reliance on foreign currencies. “Doing that will give a lot of stability to the Naira and remove 40 percent of the demand for dollars. That’s not just it, there is a lot of round-tripping,” Dangote explained.
The launch of the Dangote Refinery’s petrol product is a significant milestone in Nigeria’s journey towards self-sufficiency in petroleum production. The refinery’s capacity to produce 650,000 barrels per day is expected to meet a substantial portion of the country’s fuel demands, reducing reliance on imported products.
The new pricing structure, once finalized, is expected to have a positive impact on the market, providing consumers with a more affordable and stable fuel supply. Dangote’s commendation of President Tinubu’s policy initiative highlights the potential benefits of the “Naira for crude and Naira for the product” concept in stabilizing the national currency and reducing the country’s dependence on foreign exchange.
