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Dangote refinery will not reduce price of petrol ― FG

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AHEAD of Dangote Refinery takeoff, a fresh revelation has emerged that the project will not reduce the cost of Premium Motor Spirit (PMS), popularly known as petrol.

Making this revelation during NTA’s ‘Good Morning Nigeria’ programme on Monday, the Minister of Finance, Budget and National Planning, Zainab Ahmed, stated that when Dangote Refinery commenced operation by 2021, its production will have less significance on the price of petrol since the refinery will be selling at the international price.

According to her “What we are doing is enabling the petroleum sector to actually grow. There have been a number of refineries that have been licensed for several years. None of them was willing to start refining under the regime that we had were fuel was controlled. “The Dangote refinery is sitting within an Export Processing Zone in Lagos, so they are insulated from that. When we buy fuel from Dangote, we will be buying fuel at the international market price.

“The only savings that we will be making is the savings of freight which is shipping. We will not be paying for shipping cost “But we will still have landing cost; labour cost and the marketers will still have to put a margin. These refineries being those that are supposed to have come to operate can now come in because they are assured that when they produce, they can sell at market rate and recover their investments and make some reasonable profits.

The Dangote refinery is expected to commence operations next year with refining capacity 650,000 barrels of crude oil per day. 

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