Dangote refinery cuts ex-depot price of petrol to ₦970/litre

Dangote refinery has made a significant move in the Nigerian oil and gas industry by cutting the ex-depot price of petrol from 990 naira to 970 naira per litre. This decision comes after the management of the refinery reached a deal with oil marketers over the weekend, guaranteeing to sell an average of 28 million litres of petrol daily for the next six months for domestic consumption. In related news, the Nigerian National Petroleum Company Limited has directed oil marketers to halt the importation of petrol, citing the Dangote Refinery's capacity to meet local demand. To shed more light on these developments, Temitope Kolade, Senior Manager at Andersen Nigeria, shared insights on the implications and challenges within the sector. The discussion with Mr. Kolade highlighted key points surrounding the refinery's pricing strategy, supply agreements, and the overall landscape of Nigeria's oil and gas market. One of the critical issues raised was the uncertainty around Nigeria's daily petroleum consumption due to porous borders and the need to assess if Dangote's production could suffice without the requirement for imports. The conversation also touched on the risks associated with the Naira crude oil sales and the challenges in meeting supply targets as outlined by the NNPC. Moreover, Mr. Kolade addressed the ongoing discussions on rehabilitating and privatizing refineries in Port Harcourt, Warri, and Kaduna. While the government contemplates privatization as a solution, concerns persist regarding the operational readiness of such assets post-privatization, especially in the context of broader energy industry transitions towards renewables and electric vehicles. As the industry grapples with these complex issues, the key theme revolves around balancing market dynamics, domestic supply constraints, and the long-term sustainability of Nigeria's energy infrastructure. The discussions between Dangote refinery and oil marketers signify a pivotal moment in reshaping the country's fuel pricing mechanisms and supply structures. In conclusion, the future trajectory of Nigeria's oil and gas industry remains intricately tied to strategic decisions around refinery operations, supply chain efficiencies, and the broader energy transition agenda. As stakeholders navigate the complexities of market fluctuations and regulatory frameworks, the need for comprehensive and sustainable policies becomes increasingly paramount in ensuring a resilient and competitive industry landscape.