Nigeria: Dangote petrol arrives at petrol stations

by time news

2024-09-27 09:15:37

For the first time, this Tuesday, October 1, 100% Nigerian oil will be available at the pump of petrol stations across the country. Enough to give hope to the country’s 219 million inhabitants after repeated shortages.

The big day is approaching for Africa’s richest man, Aliko Dangote. But it was long. Started in 2013, it took eight years of work to emerge from the earth” the monster » as Aliko Dangote himself calls his refinery. It was necessary to overcome issues with the Lagos State Government, with the communities, and with the swampy terrain which entailed very significant additional costs. Dangote also said last June, during an economic forum in the Bahamas, that if it were to be done again, “ he wouldn’t do it again ».

Read alsoIn Nigeria, the Dangote refinery begins supplying gasoline to the country

At the beginning of September an agreement was finally reached between the Dangote refinery and the National Oil Company of Nigeria. NNPC is committed to supplying the refinery with 385,000 barrels of crude oil per day. In exchange it will be the sole petrol station for the refinery.

Price disputes

Questions and disagreements remain about the price of this gasoline. Aliko Dangote tries to downplay these tensions but the two sides have not yet agreed on the price of petrol. The NPCC announced a sharp increase in pump prices (+45%) and blamed Dangote, who was accused of selling his refined fuel at too high prices. The billionaire also abdicates all responsibility and explains that the price of this 100% Nigerian fuel has not yet been set.

Above all, what Dangote is asking for is an end to petrol subsidies. President Bola Tinubu discontinued them immediately after his election and then reintroduced them permanently due to high inflation and the social crisis. “ When you subsidize a product, people inflate the price of it and the government ends up paying for something it shouldn’t be paying for., the Nigerian tycoon said to our colleagues at Bloomberg on Tuesday, the price of petrol here is about 60% of the price in neighboring countries and our borders are very porous. So it’s not sustainable, the government can’t afford these subsidies ».

Aliko Dangote does not hide it, he must profit from the profitability of his refinery which still costs almost 20 billion dollars

Tracers on tankers

Infrastructure must enable Nigeria to achieve self-sufficiency. Until then, the continent’s main oil producer had to import refined products. See the anomaly! In terms of production, the refinery is expected to eventually deliver 650,000 barrels of oil per day. This will make it possible to supply all gas stations in the country and also export part of it.

Dangote announces that he will put trackers on trucks to know the country’s real consumption and avoid refining contraband oil that does not come from Nigeria.

Finally, the national company will sell its crude oil to the Naira refinery. which should ultimately make it possible to stabilize the national currency, which has been significantly devalued for two years.

#Nigeria #Dangote #petrol #arrives #petrol #stations

You may also like

Leave a Comment