Petrol to sell above N400/litre even with Dangote, NNPC refineries

According to the report by businessday, an analysis of oil prices, import tariffs, and refinery contracts shows that even if the Dangote and Nigerian National Petroleum Company (NNPC) refineries come online, the market price of gasoline is expected to exceed N400 per litre.Information Guide Nigeria

President Muhammadu Buhari’s government strategy is to lean further in developing a pragmatic approach to tackling the rapid costs of fuel subsidies, ensuring it will be pursued by the new government next year.

Other Top Stories:

• FG pays N103bn subsidy to keep Nigerian petrol prices uniform in 9 months
• Nigeria, Poland Agreed MOU On Agriculture
• Discos fail to utilise 1,936MW despite blackouts – FG
• Stock investors lose N30bn in one day

The report has it that the start of his Dangote and his NNPC refineries, scheduled for next year, will only eliminate N24 freight rates at central bank exchange rates and he N34 freight rates at parallel market rates. Some port charges can be saved, but the cost of distributing the product across the country increases.JAMB Result

With oil prices fluctuating around $100 per liter, there is no conceivable situation where the Dangote refinery will sell less than 400 N/liter of refined gasoline if it runs as expected in mid-2023. The Dangote refinery and the refurbished NNPC refinery are expected to produce 55 million liters of refined gasoline per day, potentially significantly reducing gasoline imports.

Dangote Refinery is a private company owned 20% by NNPC on behalf of the government. NNPC has said it will supply half of the crude oil the plant needs, and if this is sold at market prices, continuing to pay subsidies is unrealistic.

Check and Confirm: How much is Dollar to Naira today      Pounds to Naira today

📢 We are hiring writers!