Hopes for a potential decrease in petrol prices following the start of supply from Dangote Refinery were dashed as NNPC Limited announced a new pricing template that increased pump prices by about 11 percent to N950 per litre.
The recent hike in petrol prices by over 45 percent, implemented two weeks ago, was anticipated due to the refinery’s output. However, disagreements between NNPC and Dangote Refinery over pricing have led to higher costs.
A statement from Chief Corporate Communications Officer, NNPC, Olufemi Soneye, clarified that petrol from Dangote Refinery will not be cheaper. The document titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply” indicated that petrol from the refinery will have a base cost of N898 per litre. After accounting for additional costs such as Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charges, Midstream and Gas Infrastructure Fund (MDGIF) charges, and distribution and logistics expenses, the effective pump price in Lagos is now N950.22 per litre, up from the previous rate of N855 per litre.
NNPC also adjusted prices across the country, with Abuja now at N992.22 per litre, and prices in Kaduna, Kano, and Sokoto also increased to N992.22. Borno will see the highest pump price at N1,019 per litre, while Port Harcourt and Imo will pay N980.22 per litre.
NNPC maintained that it purchased the petrol from Dangote Refinery at N898 per litre and challenged anyone with different figures to present them. The company emphasized that PMS prices are negotiated directly between parties and are not set by the government. NNPC also noted that payments to Dangote Refinery for September 2024 PMS offtake are made in dollars, with Naira transactions starting on October 1, 2024. They assured that any discounts from the refinery would be fully passed on to the public.
In related news, NNPCL has completed lifting 16.8 million litres of petrol allocated to it, which will soon be discharged into retail outlets to alleviate the current shortage. However, depot owners and oil marketers have yet to receive the product.