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The Nigerian National Petroleum Company Limited’s latest petrol price announcement has sparked debate. With Dangote Petroleum Refinery‘s costs factored in, some experts argue that importing fuel might remain the more economical choice – a development that could impact Nigeria’s energy independence goals.
In a related development, fuel dealers anticipate the arrival of imported petrol shipments starting Tuesday, while also emphasizing the need for transparency regarding the pricing mechanism for Dangote Refinery’s domestically-produced petrol.
The Organised Private Sector is challenging the NNPC’s dominance in purchasing petrol from the multibillion-dollar Lekki refinery. By being the sole off-taker, the NNPC effectively squelches competition, they claim. This has sparked calls for a more competitive landscape that benefits both businesses and consumers.
In a bold – and some would say provocative – move, NNPC has declared its intention to sell petrol lifted from Dangote’s refinery at a staggering price of above N1,000 per liter in the far north. The announcement has ignited a heated debate about the refinery’s potential impact on Nigeria’s fuel market.
Its spokesperson, Olufemi Soneye, in a statement titled, ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’.
Breaking down the price structure, Soneye revealed that Borno State may see petrol prices soar to N1,019 per liter, while major cities like Abuja, Sokoto, and Kano can expect rates of N999.22 per liter, further fueling concerns about the economic impact.
In a slight reprieve for southern states, Soneye announced that Oyo, Rivers, and other regions will see petrol prices of N960 per liter. Meanwhile, Lagos and its surrounding areas will enjoy the lowest rate of N950 per liter, as revealed in an NNPC infographic.
“The NNPC Ltd has released estimated prices of Premium Motor Spirit, also known as petrol (obtained from the Dangote refinery) in its retail stations across the country.
Read also: Dangote Refinery Rebuts Claims Of ₦898/ltr Fuel Sale To NNPCL
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” he stated.
The company explained that the product it loaded on Sunday was paid for in dollars.
“The NNPC Ltd 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 Ltd 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,” the statement added.
Soneye clarified that the estimated pump prices for Premium Motor Spirit (PMS) were derived directly from the Dangote refinery’s September 2024 pricing, and will be consistently applied across all NNPC retail stations nationwide.
A contentious issue arose on Sunday when the Dangote Group rejected NNPC’s stated price of N898 per liter for PMS, insisting it did not reflect the actual cost. This disagreement has been swiftly followed by the unveiling of new, higher prices.
