NNPC, Dangote Refinery Should Settle Fuel Price Dispute Themselves – Presidency

Federal Government Reiterates Neutrality in NNPCL-Dangote Refinery Fuel Price Dispute

The Federal Government has maintained its stance of non-interference in the ongoing disagreement between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over the pump prices of Premium Motor Spirit (petrol).

According to Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, the government will not intervene in the dispute, as both parties have the freedom to set their prices based on market forces. Onanuga made this statement during a briefing at the Aso Rock Villa, Abuja, on Wednesday.

The petroleum market has been deregulated, allowing oil refiners and marketers like Dangote and NNPCL to determine their own prices. Onanuga emphasized that Dangote is a private company, and NNPC operates independently, even though it is owned by the Federal Government.

The disagreement between the two parties began when NNPCL claimed to have purchased petrol from Dangote Refinery at ₦898 per litre, but Dangote refuted this claim, stating that the price included additional costs such as profit margins and other expenses. The refinery maintained that its petrol is about 15% cheaper than imported alternatives.

The dispute has raised concerns about NNPCL’s dominance in fuel distribution, which allegedly prevents independent marketers from accessing Dangote’s products directly. The marketers have appealed to the government to allow them direct access to Dangote’s petrol.

Onanuga believes that healthy competition in the market benefits Nigerian consumers, as competition drives prices down. “If NNPC’s price is too high, the independent market can import fuel and sell at prices they find reasonable and profitable,” he said. “The government will not interfere in this matter. Dangote operates as a private entity, and NNPC, as a limited liability company, is entitled to set its own prices.”

The federal government’s stance is expected to allow the market to regulate itself, potentially leading to a price war that could benefit Nigerian consumers.