Fuel Price Today

Africa’s richest person, Aliko Dangote, recently released official samples of petrol from his Lagos refinery. He assured that local production of this fuel will help stabilize the Naira by correcting distortions in its value compared to the dollar. Dangote described this achievement as historic and said the refinery will help track the true consumption of petrol in Nigeria since every truck can be monitored.

Dangote praised President Bola Tinubu for his support in making this project a reality. The 650,000 barrels per day facility is expected to meet Nigeria’s needs and eventually export to West Africa and global markets. Nigeria has not produced petrol locally for nearly 28 years, relying on imports instead. Dangote believes that this development will eliminate fuel shortages and bring stability to the Naira, improving economic growth and prosperity.

He also showcased samples of Euro 5 petrol and diesel from the refinery, which have lower sulfur content and are better for engines and the environment. The release of these products is expected to reduce the demand for dollars, helping to stabilize the Naira.

Regarding pricing, Dangote stated that the fuel price from his refinery will be determined through an agreement with the federal government. He added that the refinery is ready to roll out products once this arrangement is finalized.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the refinery would release 25 million liters of petrol into the market in September, with plans to increase this to 30 million liters daily by October 2024. The NNPC has raised fuel price to N897 per liter, with some filling stations selling it for even higher. The NNPC’s decision is driven by a $6.8 billion debt owed to international suppliers.

Ogun State Governor Dapo Abiodun praised the refinery’s commencement, stating that it will strengthen Nigeria’s economy by reducing reliance on fuel imports and conserving foreign exchange. He acknowledged Dangote’s perseverance in completing the project.

Meanwhile, the Nigeria Labour Congress (NLC) expressed disappointment over the recent fuel price hike and plans to hold a meeting to respond. The NLC felt betrayed by the government’s actions, as they had agreed to a lower minimum wage based on the promise that fuel prices would not increase.

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