More Rivals For Dangote as 3 More Refineries Set to Begin PMS Production, NNPC to Revise Fuel Price

• The Nigerian government, via the Nigerian National Petroleum Company Limited (NNPC), has commenced crude oil sales to Dangote Refinery in naira
• Officials of the Dangote Refinery said the product will hit the facility this week and last for about six months in a row
• The development comes as three other refineries are ready to begin petrol production alongside the Dangote Refinery

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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian National Petroleum Company Limited (NNPC) may commence supplying crude oil in naira to the Dangote Petroleum Refinery this week following the Nigerian government's announcement that the naira-for-crude deal has begun.

The development comes as three more refineries are ready to begin petrol production.

Three refineries ready to rival Dangote 

The three refineries include the Aradel refinery in Rivers State, the Clairgold refinery and the Azikel refinery in Bayelsa State.

Also, the officials of the Dangote Refinery and owners of other local refineries confirmed on Sunday, October 6, 2024, that though the agreement for crude oil supply in naira has begun, the product is expected to reach Africa’s biggest refinery this week.

On Saturday, the Nigerian government disclosed that it had begun the sales of crude oil and other refined products in naira.

The Ministry of Finance, which disclosed this on social media, said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the deal commenced on October 1, 2024.

Punch reports that officials at the 650,000bpd-capacity Dangote Refinery commended the government’s move and expressed optimism that the product would arrive at the facility this week.

Refinery owners and marketers happy over crude oil deal

Legit.ng earlier reported that the Crude Oil Refinery Owners Association of Nigeria (CORAN) and the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) welcomed the announcement that crude oil sales should commence in the local currency.

Sources said that while the product would be sold to Dangote in naira, the refinery would supply petrol and diesel equivalent to the domestic market in the local currency in return.

According to reports, three modular refineries are set to begin petrol production following the naira-for-crude oil deal.

The refineries will join the Dangote Refinery to produce more petrol for the local market, ending petrol imports in Nigeria.

Owners of the three refineries said the facilities are at various stages of completion.

NNPC lifts more Dangote petrol

Reports say that between September 15 and 30, the NNPC lifted about 102.9 million litres of petrol from the Dangote refinery.

The effort aims to bolster the petrol supply and ease consumers' frustrations due to inadequate petrol.

Available documents showed that the state oil firm successfully loaded about 2,207 of the 3,621 trucks sent to the refinery during the period.

Experts believe the coming on-stream of more refineries will spur competition and possible price crashes in the industry.

An Energy policy analyst, Adeola Yusuf disclosed that the development is good for the economy and industry.

"Anywhere there is a free economy, there is competition. The more competition in the market, the more options are available for consumers.

I think the development will lead to a healthy rival, resulting in a possible price crash since marketers will no longer import the product," he said.

Again, NNPC to revise fuel prices

Legit.ng earlier reported that the NNPC is gearing up to introduce a fresh pricing regime for the product despite last month's adjustments.

Sources close to the development reveal that the changes are imminent, setting the stage for increased hardship for Nigerians.

On September 3, the NNPC raised the petrol price at its filling stations from N617 per litre to N855 and N897, depending on the location.