The Nigerian National Petroleum Company Limited (NNPC Ltd.) has published the estimated prices of Premium Motor Spirit (PMS) sourced from the Dangote Refinery, which will be available at its retail stations nationwide. According to NNPC Ltd., the price it paid for PMS in September 2024 is ₦898 per litre.
Clarifying the Pricing Conflict
This announcement follows a recent dispute between NNPC Ltd. and the Dangote Refinery. On Sunday, Dangote Refinery had refuted NNPC Ltd.’s earlier disclosure of the ₦898 per litre price, calling it misleading and aimed at undermining the refinery’s milestone achievement in boosting Nigeria’s energy supply. Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Refinery, emphasized that official pricing would be announced by the Technical Sub-committee on Naira-based crude sales to local refineries on October 1, 2024.
Chiejina also highlighted that the refinery’s current crude stock was purchased in dollars, meaning transactions were also made in USD to NNPC Ltd., resulting in cost savings compared to the ongoing import costs. Despite this, Chiejina did not disclose the exact selling price to NNPC Ltd.
NNPC Ltd.’s Response
Olufemi Soneye, the Chief Corporate Communications Officer at NNPC Ltd., responded by stating that PMS prices are determined through negotiations between parties and not set by the government, in line with the Petroleum Industry Act (PIA). NNPC Ltd. confirmed it paid Dangote Refinery in dollars for the September PMS offtake, with Naira-based transactions scheduled to commence on October 1, 2024. The company also welcomed any potential price discounts from the Dangote Refinery, stating that such savings would be passed on fully to consumers.
Pricing Breakdown
A detailed document from NNPC Ltd. shows that in Lagos, the estimated pump price for PMS from the Dangote Refinery is ₦950.22 per litre. This price includes several additional costs:
- NNPC’s Payment to Dangote Refinery: ₦898.78 per litre
- Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Fee: ₦8.99
- Inspection Fee: ₦0.97
- Distribution Cost (Lagos): ₦15
- Margin: ₦26.48
The retail price in other states is expected to be higher due to transportation costs.
As the situation develops, consumers are encouraged to stay informed, particularly regarding the final pricing announcements set for October 1, 2024.