The Dangote Refinery has begun sale of petrol to oil marketers at a rate of N1,014.75 per litre, breaking down the cost into N990 per litre and an additional 2.5% variation charge.
This price has been a surprise to many Nigerians who expected lower prices following a recent “crude-for-naira” deal intended to make petrol more affordable.
Since the Nigerian National Petroleum Company Ltd (NNPC) stepped back from its exclusive buying rights, the market is now open to all marketers, allowing direct price negotiations.
As a result, petrol prices at filling stations have risen, with independent outlets setting prices as high as N1,200 per litre.
This shift aligns with the full deregulation of Nigeria’s downstream petroleum sector, allowing refineries like Dangote’s to sell on a “willing buyer, willing seller” basis.
Deregulation may lead to stabilized supply chains but has also resulted in price hikes as marketers adjust their prices to cover costs and include profit margins.
