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| Alico Dangote |
There is a bit of buzz around right now about the possible drop in petrol prices, thanks to the Dangote Refinery starting its fuel distribution. But before we all get too excited, let unpack what is really going on here.
So, the word is that petrol prices may settle somewhere between N857 and N865 per litre. Not exactly dirt cheap, but considering where things have been, it looks a little more affordable. The Nigerian National Petroleum Corporation Limited (NNPCL) is getting ready to lift petrol from the Dangote Refinery, and this could mean some relief at the pump.
Now, here’s the catch, while the NNPCL plans to sell the product to marketers at around N840 to N850 per litre, making it possible for you to buy it at N857 to N865 per litre, there’s no clear picture yet if we will see this price consistency across all filling stations nationwide. There’s always that little wrinkle, right?
In Lagos, for example, NNPCL retail stations have been offering petrol at N855 per litre. Meanwhile, other marketers have been selling it for a much steeper N920. That’s a pretty big gap, and it just goes to show that we might not get uniform pricing all over the country right away.
Here’s the big picture. President Bola Tinubu made it crystal clear that the petrol price should not burden everyday Nigerians too much, especially as we’re all adjusting to the new economic realities. Fair point, but let see how that plays out.
Minister of Finance Wale Edun also weighed in, expressing some optimism that this deal between NNPCL and the Dangote Refinery might take some pressure off the foreign exchange market and boost the value of the Naira. With up to 40% of foreign exchange demand going toward importing petrol, reducing this cost could be a game changer.
At the end of the day, NNPCL is all set to start lifting petrol from Dangote tanks, and they've got their trucks and vessels lined up for action. But, like with most things, we all have to wait and see how it shakes out when it comes to real-world prices at the pump.