Hopes for a reduction in petrol prices due to anticipated supply from Dangote Refinery were dashed yesterday when NNPC Limited announced a new pricing template that raised pump prices by approximately N95 per litre nationwide.
Previously, petrol prices had been increased by over 45% about two weeks ago in expectation of the refinery’s output. However, after extended negotiations, NNPC Limited was designated as the sole off-taker of petrol from the refinery. Disagreements between NNPC and Dangote over pricing have resulted in no reduction for consumers.
According to Chief Corporate Communications Officer of NNPC, Olufemi Soneye, 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 be priced at N898 per litre. Additional costs, including NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) N4.495, Midstream and Gas Infrastructure Fund (MDGIF) N4.495, and distribution and logistics N42.45, bring the Lagos pump price to N950.22 per litre, up from the current N855.
NNPC also adjusted prices across the country, with Abuja now at N992.22 per litre (up from N897). Prices in Kaduna, Kano, Sokoto, and Borno have also increased, with Borno having the highest at N1,019 per litre. Port Harcourt and Imo have been adjusted to N980.22 per litre.
NNPC asserts that it procured the product from Dangote at N898 per litre and invites any disputing parties to disclose their figures. The company emphasizes that, according to the Petroleum Industry Act (PIA), PMS prices are set through negotiation and not by government mandate.
For September 2024, NNPC is paying Dangote Refinery in USD, with Naira transactions commencing on October 1, 2024. NNPC has promised that any discounts received from Dangote will be passed on to the public.
Chief Chinedu Ukadike of the Independent Petroleum Marketers Association (IPMAN) has warned that prices at independent marketers’ outlets may reach N1,200 to N1,300 per litre due to lack of direct access to NNPC’s supplies. He expressed concerns about the continued closure of the NNPC Retail portal, which limits independent marketers’ access to Dangote’s supply.
IPMAN has requested that Dangote Refinery engage directly with independent marketers, who operate the majority of petrol stations in Nigeria. Chief Ukadike also noted that IPMAN has yet to receive information from NNPC on how other marketers will be supplied.