Aliko Dangote, Chairman of Dangote Group, has clarified that the Nigerian National Petroleum Company Limited (NNPCL) provided inaccurate information regarding the price of fuel sourced from his refinery. He emphasized that the fuel sold to NNPCL from his refinery on September 15th was 15% cheaper compared to the fuel NNPCL imported.
Dangote highlighted that the pricing set by NNPCL lacked transparency, attributing this to the high costs associated with importing fuel from abroad.
He explained, “This isn’t really a disagreement. On September 15th, NNPC purchased fuel from us at the international price, similar to the over 800,000 metric tons of gasoline they import. However, the fuel they bought from us was cheaper than their imported fuel. When they announced our price, it wasn’t an accurate reflection, perhaps due to miscommunication or misunderstanding.
“Their import costs, including profit and other factors, tend to be much higher. In fact, their imported fuel is about 15% to 20% more expensive than ours. As a result, they had to sell fuel at a ‘basket price.’ If they intend to remove the subsidy, they should openly declare it, and everyone will adapt accordingly.”
