(Bloomberg) -- Nigeria’s state oil company expects gasoline prices to increase about 11% under a new deal to source petroleum from the Dangote Refinery.
The estimated pump price in the commercial capital, Lagos, is 950.22 naira ($0.58) per liter, the Nigerian National Petroleum Co. said in a statement on Monday. That compares with a current price of 855 naira per liter.
Fuel-company trucks began loading gasoline at Dangote’s facility on Saturday, following an agreement that allows the NNPC to swap crude for an equivalent amount of gasoline from billionaire Aliko Dangote’s site. Sourcing refined products domestically may end decades of dependence on imports by Africa’s largest crude producer.
The NNPC said it’s paying Dangote in dollars for supplies in September, while transactions will be completed in naira from Oct. 1
“The NNPC assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public,” the company said.
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