Dangote Refinery, PH Refinery, And Other Local Refineries Won’t Reduce Petrol Prices, NNPCL CEO Affirms

In recent news from the Nigerian petroleum sector, the Nigerian National Petroleum Company Limited (NNPCL) has indicated that despite local refineries commencing the production of Premium Motor Spirit (PMS), colloquially known as petrol, the cost of the commodity will remain unchanged. The clarification was provided by the NNPCL’s Group Chief Executive Officer, Mele Kyari, during a televised interview with Arise TV in Abuja, where he explicitly denied the widespread assumption that local production would lead to a decrease in petrol prices.

A notable development in the sector has been the inauguration of the Dangote Refinery, marked by an event on May 22, 2023, which had the presence of former President Muhammadu Buhari. According to Kyari, the refinery is slated to commence the dispatch of its products around the end of July and the beginning of August. Additionally, the Port Harcourt Refining Company is anticipated to commence operations by the year’s end. This will contribute to a substantial increase in the country’s local petrol production capabilities.

However, Kyari cautioned that irrespective of the quantum of petrol produced by these facilities, the price of the commodity will remain unaffected. The reasoning behind this is that while the production is local, the refineries must factor in their production costs and other expenses, which would keep the selling price in alignment with the current market price. Moreover, the aspect of subsidy will also be done away with once local production gets underway. Kyari emphasized that there would be no financial provision for a subsidy in the future as the country lacks the resources to maintain this policy.

The NNPCL CEO also touched upon the current fuel scarcity witnessed across the nation during a subsequent interview on Channels TV. Offering reassurance to the public, he predicted that the fuel queues would not last beyond Saturday. He reasoned that the country is not experiencing a supply issue as there are over 810 million litres of PMS available in depots, tanks, and fuel stations across Nigeria. As these reserves are already on the land, there is no delay due to transfer from marine vessels.

Finally, Kyari confirmed the authenticity of a PMS pricing document for various states that made rounds on the internet on Wednesday. He confirmed that the document was indeed issued by the NNPCL.