On Monday, oil marketers raised concerns about the pricing of petrol from the Dangote refinery, questioning why the Nigerian National Petroleum Company Limited (NNPC) was selling locally refined petrol at a higher pump price than imported fuel.
Representatives from the Independent Petroleum Marketers Association of Nigeria (IPMAN) voiced their concerns, arguing that the price of domestically produced petrol should be lower to reflect the benefits of local production. They emphasized that competitive pricing is crucial for the success of the Dangote Refinery and the sustainability of the country’s fuel market.
IPMAN National Welfare Officer, John Kekeocha, expressed these concerns during an appearance on Channels Television’s The Morning Brief on Monday. “If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?” he questioned.
“If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?” he queried.
He argued that the fuel that NNPC is getting from Dangote cannot be costlier than the one imported, because it has the advantage of the removal of a huge part of supply logistics.
“The products we are about to get from Dangote refinery cannot be costlier than the one imported because we have an advantage of supply logistics,” he said.
“If the Dangote refinery’s petrol price is N950 per litre without government intervention, it means under-recovery gradually comes to an end and maybe, Nigerians would get it cheaper,” he added.
The NNPC began loading the first batch of petrol from the Dangote Refinery on Sunday, noting that the price per litre from the refinery was N898.
This price mentioned was disapproved by Dangote Refinary who described the claim by the NNPCL as “misleading and mischievous”.
“It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature,” Chiejina said.
NNPCL insisted that it got petrol from Dangote Refinery at N898 per litre and challenged the latter to release the price it sold petrol. Following this, the NNPCL released a breakdown of pricing it sells Dangote petrol at its filling stations across the country.
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In the attached document, the NNPC stated that fuel from the Dangote refinery will sell for N950.22 per litre in Lagos; N960.22 in Oyo; N980.22 in Rivers; N992.22 in Abuja; N999.22 in in Kaduna; N999.22 in Kano; N999.22 in Sokoto and N1,019 in Borno, based on the September pricing template.
NNPCL stated that petrol prices are determined through direct negotiations rather than government imposition.
A breakdown indicated that the final price from the Dangote refinery was N898.78, according to the statement, while distribution within Lagos is N15 per litre, inspection fee is N0.97, NMDPRA fee is N8.99, with an expected margin of N26.48.
Furthermore, the company said in its statement that “The NNPC 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 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 per cent to the general public,” it stated.
Meanwhile a day later, NNPC adjusted some portions of the nationwide petrol price document it released earlier on Monday.
NaijaTimesUSA gathered that the areas of differences between the first press statement and the second was that while for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the fee was N8.99, the second statement showed N4.495.
Also, while the first statement had an inspection fee of N0.97, a margin of N26.48 and a distribution fee of N15, the second statement did not indicate inspection fee and margin. Also, the distribution and logistics fee was changed to N42.45.
Besides, the second statement had an additional Midstream and Gas Infrastructure Fund (MDGIF) of N4.495. The MDGIF is a government fund set up to invest in infrastructure projects that will improve transportation and processing as well as utilisation in the sector.
