Nigeria May Allow Dangote Refinery to Set Gasoline Prices, Shifting Government’s Fuel Control
Abuja, Nigeria – The Nigerian government is reportedly considering a significant policy shift that would allow Aliko Dangote’s newly established refinery to set the price of the gasoline it sells. This move could fundamentally alter the longstanding government control over fuel pricing in the country, according to sources familiar with the discussions.
Historically, Nigeria, Africa’s largest oil producer, has relied entirely on imported gasoline, with the state-owned Nigerian National Petroleum Corporation (NNPC) acting as the sole price setter and subsidizing fuel prices at a substantial annual cost. However, with Dangote’s massive refinery near Lagos now commencing local gasoline production, the government is exploring the possibility of permitting the plant to determine its own prices.
This development could have a profound impact on the country’s fuel market, potentially reducing the financial burden of subsidies on the government and offering more competitive pricing options to petrol marketers, who would be able to buy products directly from the Dangote refinery.