Government Refuses to Set Prices for Dangote Refinery Products, Prioritizes CNG Expansion

The Nigerian Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has announced that it will not dictate the price of petroleum products from the Dangote refinery once it is fully operational.

Oil marketers are being encouraged by the government to set up Compressed Natural Gas (CNG) points at their filling stations to enhance consumer access. Farouk Ahmed, CEO of the NMDPRA, made it clear that while the government supports local refining to decrease imports, it will not enforce oil marketers to buy from the Dangote refinery, stating that such choices are business-related.

Ahmed stressed the significance of the Dangote refinery as a notable achievement in Nigeria, reducing imports of petroleum products, excluding those from modular refineries. The NMDPRA backs the local industry and urges marketers to support local refineries. He also called on oil marketers to integrate CNG points at their filling stations, in line with President Bola Tinubu’s directive for government vehicles to run on CNG and new retail licenses to have CNG points.

The NMDPRA is collaborating with production companies, NUPRC, NNPC Limited, and the Gas Aggregation Company of Nigeria to ensure competitive pricing for consumers. Abdukabir Adisa Aliu, CEO of Matrix Energy, expressed willingness to assist the government in diversifying energy sources for Nigerians, highlighting the importance of national interests above all.