The Nigerian National Petroleum Company Limited (NNPC) has disclosed that petrol sourced from the Dangote Refinery will be sold at prices exceeding N1,000 per litre in some parts of northern Nigeria.
This announcement was made by NNPC spokesperson, Olufemi Soneye, in a statement issued on Monday titled “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing”.
Soneye revealed that in states like Borno, the price could rise to N1,019 per litre, while in Abuja, Sokoto, Kano, and Kaduna, the price will be N999.22 per litre.
In Oyo, Rivers, and other southern regions, it will be N960 per litre, with the lowest price of N950 reserved for Lagos and its surrounding areas.
The NNPC clarified that the price determination follows market forces, in line with the Petroleum Industry Act (PIA). “The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” Soneye stated.
He further explained that NNPC purchased the petrol from Dangote Refinery in U.S. dollars, as naira transactions will only commence from October 1, 2024. “The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as naira transactions will only commence on October 1, 2024,” the statement read.
Additionally, Soneye assured the public that if the quoted prices were challenged, any discounts from Dangote Refinery would be fully transferred to consumers. “The NNPC Ltd 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 per cent to the general public,” he added.
According to an infographic released by NNPC, the base price from the Dangote Refinery is N898.78 per litre, with distribution costs in Lagos amounting to N15 per litre, inspection fees at N0.97, and a NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) fee of N8.99. The estimated margin stands at N26.48 per litre, which collectively determines the final pump prices across different states.
The Dangote Refinery, meanwhile, commenced its first loading of Premium Motor Spirit (PMS) on Sunday at its facility located in Ibeju-Lekki, Lagos. However, the refinery’s management has refuted the price figures released by NNPC.
Anthony Chiejina, Dangote Refinery’s Group Chief Branding and Communications Officer, called NNPC’s statement “misleading and mischievous”, alleging that it undermines the milestone achievement of the refinery in addressing Nigeria’s fuel supply challenges.
“The refinery’s attention has been drawn to Soneye’s claim that Dangote Refinery was selling Premium Motor Spirit (PMS) at N898 per litre,” Chiejina stated, criticizing the NNPC for releasing such information without proper coordination.
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Chiejina urged Nigerians to disregard the pricing announcement made by NNPC, stating that the Technical Sub-committee on Naira-based crude sales to local refineries will formally announce the pricing on October 1, 2024.
The refinery’s communications officer further clarified that while the refinery is yet to disclose the exact price at which it sold fuel to the NNPC, its current stock of crude was purchased in dollars.
He emphasized that significant savings were achieved compared to fuel import costs. Chiejina’s statement did not include specific pricing figures but maintained that the sale was conducted in dollars.
In response, Soneye maintained his stance, reiterating that the NNPC bought petrol from the Dangote Refinery at the price of N898 per litre. “If the price I gave is wrong, the NNPC should reveal the real price to Nigerians,” Soneye challenged.
This led to the publication of a comprehensive price breakdown on Monday morning, following a weekend of disputes between NNPC and Dangote Refinery.
The official price list indicated that fuel from the Dangote Refinery would sell for N950.22 per litre in Lagos, N960.22 in Oyo, N980.22 in Rivers, N992.22 in Abuja, N999.22 in Kano, Kaduna, and Sokoto, and N1,019 per litre in Borno.
The NNPC reiterated that in compliance with the PIA, fuel prices are negotiated directly between parties and are not controlled by the government. While the Dangote Refinery is expected to supply a large portion of Nigeria’s fuel needs, the NNPC confirmed that it would still import petrol to supplement the volume produced locally.
Therefore, NaijaTimesUSA gathered that Nigerians should not anticipate a reduction in petrol prices simply because it is refined domestically.
As Soneye has previously clarified, “The price of petrol will still be determined by market forces,” but qe can be assured that the Dangote Refinery’s production would ensure the availability of fuel in the country as earlier stated last week.
