President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has said petrol pump prices will fall below N740 per litre nationwide before Christmas, as the Dangote Petroleum Refinery intensifies efforts to ensure recent price reductions are fully reflected at the retail level.
Speaking at a press conference at the refinery on Sunday, Dangote said the facility was operating round the clock to deliver the benefits of domestic refining to Nigerians.
He disclosed that from Tuesday, MRS filling stations would begin selling premium motor spirit (PMS) at prices not exceeding N740 per litre, starting in Lagos. According to him, marketers purchasing directly from the refinery are already buying petrol at N699 per litre.
Dangote also announced a reduction in the refinery’s minimum purchase requirement from two million litres to 500,000 litres, a move aimed at enabling more marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), to participate in product offtake.
To sustain nationwide distribution and affordable pricing, he said the refinery would soon deploy its fleet of Compressed Natural Gas (CNG) trucks, adding that the company was ready to acquire more than the initial 4,000 trucks if necessary, despite what he described as frustration and sabotage.
Responding to concerns by oil importers that the price cuts could lead to losses, Dangote said the refinery was established primarily to serve national interest, not to protect importers.
“Anyone who chooses to continue importing despite the availability of locally refined products should be prepared to face the consequences,” he said.
He also drew attention to quality differences, noting that products supplied from the refinery through MRS and other offtakers were straight-run fuels, unlike blended PMS imported from overseas.
“Nigerians have a choice to buy better quality fuel at a more affordable price or buy blended fuel at a higher rate. Importers can continue to lose, so long as Nigerians benefit,” he added.
Dangote stressed that the $20 billion refinery was driven more by legacy than profit, revealing plans to list the facility on the Nigerian Exchange to allow Nigerians own shares.
“We want every living Nigerian to have the opportunity to benefit, no matter how small their holding. If the market takes 55 per cent and I retain 45 per cent, I am satisfied,” he said.
He further disclosed that discussions were ongoing with the Securities and Exchange Commission (SEC) to allow Nigerians buy shares in naira while receiving dividends in dollars.
The DIL president accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of misrepresenting the refinery’s capacity by publishing offtake figures instead of actual production data.
“We have the capacity to meet local demand and sufficient refined products in stock. But to keep prices high, imports are deliberately encouraged,” he said, alleging attempts to push the refinery into exporting products only for them to be re-imported at higher prices.
“This refinery is for Nigerians first, and I am not giving up,” he declared.
Dangote also revealed that the refinery imports an average of 100 million barrels of crude oil annually from the United States, a figure expected to rise to 200 million barrels after expansion, due to inadequate domestic crude supply. He added that crude is also sourced from Ghana and other countries, while jet fuel and gasoline are exported to the United States.
He further alleged that local refiners are compelled to buy Nigerian crude at premiums of up to $4 per barrel from trading arms of international oil companies, placing them at a competitive disadvantage.
Calling for reforms, Dangote urged the government to ensure crude oil taxes are assessed based on actual transaction values, warning that under-declaration was leading to revenue losses.
He also called for an investigation into the activities of the Chief Executive Officer of the NMDPRA, Engr. Farouk Ahmed, accusing him of economic sabotage and alleging collusion with international traders and oil importers through the continued issuance of import licences.
Dangote further claimed that the NMDPRA leadership was living beyond its legitimate means, alleging that four of Ahmed’s children attend secondary schools in Switzerland at costs running into millions of dollars.
