As part of activities to ensure a successful completion of the planned Dangote Refinery, the government has been making concessions that would make the scheduled date of December 2019 a reality.
According to the Group General Manager, Crude Oil Marketing Division of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, “pioneer status” and “duty waivers” have typically been granted to the Dangote Group in respect of the refinery.
Minister of State for Petroleum Resources, Ibe Kachikwu, had given ab assurance, during one of his visits to the refinery site, that the government was ready to play its part by granting pioneer status and duty waivers for the project.
Kyari added that government was not considering some form of concession in terms of crude supply to the plant, so as to keep petroleum product prices from the refinery low, Daily Trust reports.
He, however, added that the cost of petroleum products from the Dangote refinery, particularly premium motor spirit (also known as petrol), would be lower than import.
In his words, “The cost (petroleum products) will be less freight. So, landing cost will be lower than import. There may still be under-recovery if the N145/litre is maintained at current crude price. So, they must be kept whole or else they export all.”
