The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reached an agreement with the Nigerian National Petroleum Corporation Limited (NNPC Ltd) to sell crude oil to the Dangote refinery in the local currency, the Naira. This was announced in a statement by the NMDPRA on Tuesday in Abuja, following the commencement of petrol production at the Dangote refinery.
This move aligns with the recent approval by the Federal Executive Council (FEC), which allows the sale of crude oil to the Dangote refinery in naira and the purchase of petrol products from the refinery in the same currency. The NMDPRA also confirmed that the Dangote refinery has begun petrol production, with plans to produce 20 million litres of petrol in September.
At the NMDPRA headquarters in Abuja, NNPC Limited (NNPCL) reached an agreement to begin supplying crude oil to the Dangote Refinery in local currency. The NMDPRA announced that the refinery is set to deliver an initial 25 million litres of petrol (PMS) to the domestic market in September, with plans to increase this output to 30 million litres daily by October 2024. This agreement is expected to ease pressure on foreign exchange by 40 percent.
The Dangote Refinery officially commenced petrol production on September 3, with the first supply projected to begin within 48 hours. This development is seen as a crucial step toward resolving the persistent fuel scarcity in Nigeria. Aliko Dangote, CEO of Dangote Refinery, expressed deep gratitude to President Bola Tinubu and his administration for their strategic efforts in ensuring energy security for the nation.
Earlier on Tuesday, it was observed that the Nigerian National Petroleum Company (NNPCL) Limited has raised the price of fuel from N650 to N855 per litre at fuel dispensing stations. This price adjustment, which appears to be an attempt to mitigate potential backlash, was implemented quietly, with NNPC outlets increasing pump prices by over 30%. The new prices were observed on Tuesday at government-backed NNPC stations in Lagos and Abuja. Meanwhile, privately-owned stations have set their prices even higher, at N897 per litre.