The Battle of Petrol Pricing: NNPCL vs. Dangote Refinery
By Emeka Anaeto, Business Editor, Udeme Akpan, Energy Editor and Yinka Kolawole
In the midst of supply challenges in the downstream petroleum sector, the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery are at odds over determining an acceptable petrol price. The bone of contention revolves around balancing market dynamics with social impact and affordability, leading to a stalemate in negotiations.
NNPCL seeks a subsidy-compatible pricing, while Dangote leans towards market-reflective pricing, causing a gridlock. However, both parties are now working towards a middle ground to ensure supply stability and sustainable pump prices.
Meanwhile, NNPCL aims to clear the supply backlog before reopening its purchasing portal to prevent market disruptions. Stakeholders have highlighted the need for collaboration in the oil and gas industry to improve product quality, consumer services, and energy transition.
Additionally, Dangote Refinery’s diesel pricing has raised concerns among marketers, prompting a petition to President Bola Tinubu. The refinery seeks to address challenges in fuel supply and pricing while upholding economic stability amidst crude oil feedstock delays.
In the quest for consensus, both NNPCL and Dangote are engaging in intense negotiations to define pricing terms and ensure a steady supply of petroleum products to the market.