Petrol Prices Surge: Lagos at N950/Litre, Borno at N1,019/Litre Following Dangote Refinery Start

Petrol Prices Surge: Lagos at N950/Litre, Borno at N1,019/Litre Following Dangote Refinery Start

The Nigerian National Petroleum Company Limited (NNPCL) has announced new petrol prices from the Dangote Refinery, leading to widespread discontent among Nigerians. The prices will be N950.22 per litre in Lagos and N1,019.22 per litre in Borno State. This comes as the Dangote Refinery, with a capacity of 650,000 barrels per day, begins operations and deploys over 100 trucks for distribution.

Many Nigerians had anticipated a decrease in petrol prices with the start of local refining, but this expectation has not yet materialized. However, there is potential for future changes. Starting October 1, 2024, the NNPCL plans to sell crude oil to the Dangote Refinery in Naira under the new Naira for crude oil initiative. This program, part of President Bola Tinubu’s strategy, aims to support local refining and ease foreign exchange pressures. The NNPCL will supply 385,000 barrels of crude oil daily to the refinery, with payments made in Naira.

Economist Dr. Muda Yusuf sees the price increase as unfortunate but remains hopeful that the Naira for crude oil initiative may lead to lower prices in the future. Energy expert Mr. Tunji Oyebanji acknowledges the significant impact of the Dangote Refinery on Nigeria’s refining capacity but notes that pricing issues are still a major concern.