The hopes for a potential reduction in petrol prices following the commencement of supply from Dangote Refinery were dashed yesterday as NNPC Limited released a new pricing template that raised pump prices by about 11% to N950 per litre. This increase comes after a 45% price hike two weeks ago, apparently in anticipation of the refinery’s output.
A statement by Chief Corporate Communications Officer, NNPC, Olufemi Soneye, clarified that Dangote petrol will not sell cheaper. According to a document titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply,” petrol from the refinery will have a base cost of N898 per litre. Additional costs, including Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charge, Midstream and Gas Infrastructure Fund (MDGIF) charge, and distribution and logistics cost, bring the effective pump price in Lagos to N950.22 per litre.
NNPC also adjusted prices across the country for its stations, with Abuja now at N992.22 per litre, Kaduna, Kano, and Sokoto at N992.22 per litre, and Borno at N1,019 per litre. Prices in Port Harcourt and Imo have been increased to N980.22 per litre.
NNPC insisted that it loaded the product at N898 per litre from Dangote and challenged anyone with contrary figures to make them public. The company stated that PMS prices are not set by the government but negotiated directly between parties, as per the Petroleum Industry Act (PIA).
The NNPC Ltd confirmed it is paying Dangote Refinery in dollars for September 2024 PMS offtake, with Naira transactions commencing on October 1, 2024. NNPC assured that any discounts from Dangote Refinery would be passed on 100% to the general public.
National Reports findings showed that NNPC has completed lifting 16.8 million litres of petrol allocated to it. However, depot owners and oil marketers have not started taking delivery of the product.
Independent Petroleum Marketers Association (IPMAN) warned consumers to expect prices as high as N1,200 per litre in outlets operated by other marketers.
Dangote Refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, did not respond to enquiries on the new pricing.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) emphasized the need for increased transparency in the downstream sector.
NNPCL disclosed that it has supplied over 48 million barrels of crude to Dangote Refinery for processing since December 2023.
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