State-owned NNPC is the only buyer of gasoline sold domestically by Nigeria’s 650,000 b/d Dangote refinery. For the gasoline deliveries made in September, NNPC is paying Dangote in US dollars. A crude-for-gasoline swap that will be settled in naira will begin in October.

With a retail price of N950.22/l in Lagos, the refinery’s ex-refinery gasoline price is set at $736/t, or 898.78 naira/litre ($0.55/l), reflecting recent price increases brought on by a reduction in government subsidies. According to Nigeria’s Petroleum Industry Act, gasoline prices are directly negotiated between parties.

NNPC hopes that Dangote’s operations will lessen its reliance on imports for its domestic gasoline supply, as it has historically relied heavily on them. The refinery is still increasing production even though its goal is to meet domestic demand; over the weekend, it produced 16 million liters, far less than its 57 million liters per day capacity.

Upon the full functionality of the residual fluid catalytic cracker (RFCC), full operations are anticipated by October or November. Beginning in October, NNPC will provide Dangote with 385,000 barrels per day of crude, with gasoline sold only to NNPC for internal distribution. Other purchasers will be able to purchase diesel.