Aliko Dangote, President of the Dangote Group and Africa’s wealthiest man revealed that petrol produced by the Dangote Refinery is 15% cheaper than the fuel imported by the Nigerian National Petroleum Company Limited (NNPCL).

He made this statement during an interview with Bloomberg Television, addressing recent developments in Nigeria’s fuel pricing.

His comments followed NNPCL’s announcement that it purchased petrol from the Dangote Refinery for N898 per litre on September 15, 2024.

Shortly after, NNPCL raised fuel prices across the country, with costs ranging from N950 to N1,100 per litre at filling stations.

This sudden price increase created confusion in the oil and gas sector, fueling public concern about the rising cost of fuel.

Dangote clarified the situation, explaining that NNPCL had purchased approximately 800,000 metric tons of imported gasoline around the same time it bought fuel from the Dangote Refinery.

He emphasized that the petrol produced by his refinery was sold at a lower price compared to NNPCL’s imported fuel.

According to Dangote, the price NNPCL quoted for his refinery’s fuel was not the actual cost but rather the final price after adding profit margins and other expenses incurred by the state-owned company.

He stressed that Nigerians were unaware of the full cost NNPCL incurs when importing fuel, noting that imported gasoline is about 15% more expensive than the petrol produced domestically by Dangote’s refinery.

Dangote explained that NNPCL’s higher price reflects these added costs, making his refinery’s fuel more affordable by comparison.

Addressing the broader fuel pricing issue, Dangote suggested that NNPCL could opt for a basket price approach or consider removing the remaining fuel subsidies altogether.

He stated that removing the subsidies would create a more transparent pricing structure and allow the market to adjust accordingly.

This discussion on fuel pricing comes amid calls from Dangote and other industry stakeholders for the Nigerian government to eliminate fuel subsidies.

Earlier reports indicated that petrol marketers had been purchasing NNPCL’s imported fuel at an average price of N870 per litre, further highlighting the price discrepancy between locally produced and imported fuel.