The Federal Government has announced that it has reached an agreement with Dangote Refinery on the pricing and supply of petrol, with lifting set to commence tomorrow, September 15. The agreement states that NNPC will remain the sole off-taker of petrol from the refinery, with other marketers obtaining the product from NNPC.
In return, NNPC will supply 385,000 barrels of crude oil to Dangote Refinery starting October 1, 2024. Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, paid for in Naira. Diesel will be sold in Naira to interested off-takers, while PMS will only be sold to NNPC.
This agreement is expected to ease the petrol shortage and allow the government to continue paying subsidies on the product. Additionally, Dangote has announced a reduction in diesel and aviation fuel prices to N940 and N980, respectively.
