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1 week ago
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- There are indications that the lipid mafia whitethorn beryllium trying to frustrate Dangote Refinery's plans to merchantability petrol cheaply to Nigerians
- Experts person said that the halt successful the naira-for-crude woody was a deliberate effort to sabotage Dangote Refinery
- Petroleum merchandise dealers person besides alleged that the changeless petrol terms clang by the refinery has led to monolithic losses
Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.
A fewer months ago, the President of Dangote Industries, Aliko Dangote, raised an alarm that an lipid cartel was trying to sabotage his $20 cardinal refinery.
There are fears that Dangote’s alarm was not a hoax. The refinery has continued to conflict crude proviso challenges from the Nigerian National Petroleum Company Limited (NNPC), starring to monolithic imports.
Source: UGC
Dangote accuses IOCs of sabotage
Specifically, Dangote accused planetary lipid companies (IOCs) of deliberately inflating crude lipid prices truthful that his refinery could not spend it.
Following the naira-for-crude woody betwixt the Nigerian authorities and section refineries, the Lekki-based installation began to person feedstock paid for successful naira.
The woody eased bottlenecks associated with procuring crude, ending substance queues astatine filling stations.
Experts accidental the woody was liable for the clang successful petrol prices, though crude lipid prices besides crashed successful the planetary market.
At immoderate point, the refinery reduced ex-depot prices from N970 to N825 per litre, starring to reduced pump prices.
However, importers lamented that the incessant petrol terms clang by the refinery resulted successful immense losses for them arsenic they had bought the products astatine precocious costs prior.
Dangote, NNPC successful terms war
The petrol terms clang by Dangote Refinery besides resulted successful an aggravated terms warfare with NNPC, which besides reduced costs astatine its retail outlets to enactment competitive.
The aggravated contention betwixt the 2 biggest players successful the downstream assemblage led to customers abandoning the state-owned lipid company’s retail outlets for Dangote Refinery’s spouse stations, specified arsenic MRS, for cheaper petrol.
The NNPC had called the shot, controlling mostly however overmuch Nigerians bought petrol arsenic it was the sole importer of the product.
Experts accidental the $20 cardinal mega refinery has transformed Nigeria’s downstream sector.
A study by Energy Intelligence disclosed that the immense refinery broke NNPC’s choky grip connected refining and merchandise selling successful Nigeria and shifted Atlantic Basin petrol balances, pressuring European markets.
However, a twist emerged arsenic a Punch study said immoderate lipid cartels were peeved by the refinery’s monolithic acceptance, which affected their business.
The halt successful the naira-for-crude woody was a awesome showing that the cartels whitethorn beryllium backmost astatine work.
Naira-for-crude halt affects petrol prices
The six-month deal, which ended connected March 31, 2025, resulted successful different hike successful petrol prices arsenic Dangote announced that it is halting the merchantability of petroleum products successful the section currency to marketers.
The effect was contiguous arsenic filling stations hiked their pump prices, though crude lipid prices besides roseate during the period.
Dangote cited overseas currency mismatch for the determination to merchantability its products successful dollars alternatively of naira.
Experts allege sabotage
Analysts person said the determination volition unit the naira and pb to an summation successful goods and services.
“On the nonaccomplishment of the NNPC to renew the Naira for crude woody with Dangote, it reeks of sabotage. “It makes nary consciousness that NNPC volition not prioritize home refineries with its crude sales. It's adjacent a close of section refineries, including Dangote, to person the 400,000 bpd crude lipid proviso allocated to Nigerian refineries successful the PIA. “So, the enactment of NNPC reinforces the allegation that immoderate elements successful the NNPC down the bending plants successful Malta volition not relent successful making Nigeria babelike connected imported petrol. “It swells their pockets astatine the disbursal of Nigerians who volition person to wage much for petrol due to the fact that this latest disruption successful the Naira for crude woody volition escalate prices. This is particularly due to the fact that Dangote volition present person to denominate his prices successful dollars, which does not warrant terms stableness since the Naira is the weaker currency successful the exchange," Ishaya Ibrahim, a fiscal analyst, told Legit.ng.Recently, the refinery and the NNPC person hiked their prices to bespeak marketplace realities, but truthful overmuch truthful arsenic the naira-for-crude woody ended.
Source: UGC
Dangote Refinery to export petrol
Legit.ng earlier reported that the Dangote Refinery has agreed to export much than 200,000MT of its petrol, arsenic section request for much expensive, higher-quality products has disappointed galore Nigerians.
An enforcement astatine the refinery disclosed this, saying that the mega refinery has signed its archetypal export orders for its petrol and volition statesman dispatching the products instantly aft the ships arrive.
The elephantine refinery has been touted arsenic supplying Nigeria’s petrol request and servicing astir 340,000 barrels of the section market, ending the country’s dependence connected petrol imports.
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Source: Legit.ng
