The Truth About Dangote Refinery and Petrol Prices: Separating Fact from Fiction
As the Dangote Refinery prepares to commence operations, rumors have been circulating about the potential impact on petrol prices. However, the Nigeria National Petroleum Company Ltd (NNPCL) has set the record straight: there is no guarantee of lower prices.
In a statement, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized that the pricing of petroleum products is determined by global market forces, not by domestic refining. This means that even with the Dangote Refinery producing petrol, prices will still be influenced by international market trends.
This clarification comes amidst claims that NNPCL is attempting to monopolize the offtake of products from the Dangote Refinery. However, Soneye reassured that the company is committed to fair market practices.
As Nigeria welcomes the addition of the Dangote Refinery to its petroleum landscape, it’s essential to separate fact from fiction. While the refinery’s production may increase supply and reduce reliance on imports, it’s not a guarantee of lower prices. Understanding the global market forces at play will help manage expectations and promote a more informed conversation about Nigeria’s petroleum industry.