Dangote Breaks Silence On Why Petrol Prices Stay High Despite Free Distribution

According to Ireporter Online, the Dangote Group has provided clarification on the persistent high cost of petrol in Nigeria, despite the company’s ongoing free distribution of the product across the country.

The Group’s Vice President, Devakumar Edwin, revealed that delays in the delivery of 4,000 Compressed Natural Gas (CNG) trucks ordered from China have slowed the refinery’s nationwide distribution plan. Edwin made this known on Friday during a tour of the Dangote Petroleum Refinery by former presidential aide, Reno Omokri.

Explaining the situation, Edwin said that logistical challenges in shipping the trucks from China had a significant impact on the company’s operations. “We ordered 4,000 trucks, but there were not enough vessels to transport them to Nigeria. That has caused delays,” he stated.

He further assured that the situation would soon normalize, noting that all the trucks are expected to arrive before the end of the year. Once the trucks are deployed, he said, the refinery would be able to meet local demand more efficiently, ensuring that petrol prices remain uniform and considerably lower across all parts of the country, from Taraba to Sokoto.

Edwin also pointed out that the refinery has been facing challenges in obtaining crude oil locally, which has affected its transition plan to fully depend on Nigerian crude. He recalled that in July, the company had expressed its intention to switch entirely to local crude supply by the end of 2025.

However, he said this target has been hindered by the suspension of the naira-for-crude policy due to limited crude supply from the Nigerian National Petroleum Company (NNPC) Limited. Edwin added that following President Bola Tinubu’s directive that crude oil should be supplied in naira, the company is optimistic that its crude supply challenges will soon be resolved.