Dangote Petrol: Consumers to pay additional N95 per litre
…Lagos N950, Abuja N992, Borno N1,019
–Marketer price to hit N1,200
Hopes for a potential reduction in petrol prices following the anticipated supply from Dangote Refinery were dashed yesterday, as NNPC Limited released a new pricing template that raised pump prices by approximately N95 per litre nationwide.
Petrol prices had already been increased by over 45 per cent about two weeks ago, in anticipation of the refinery’s output. However, after extended negotiations between the Federal Government and Dangote Refinery, NNPC Limited was designated as the sole off-taker of petrol from the refinery.
Amid disagreement between NNPC and Dangote over the price of the product, a statement by Chief Corporate
Communications Officer, NNPC, Olufemi Soneye clarified that Dangote petrol will not sell cheaper.
A document titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply”, showed that petrol from the refinery will cost N898 per litre.
Additional costs such as NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) N4.495, Midstream and Gas Infrastructure Fund (MDGIF) N4.495, and distribution and logistics cost N42.45 brought the pump price in the Lagos area to N950.22 per litre from the current rate of N855 per litre.
NNPC also adjusted the price of the product across the country for its stations with Abuja now at N992.22 per litre from N897. The price for Kaduna, Kano and Sokoto has also increased to N992.22 while consumers in the Borno area will pay the highest pump price 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 it public.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by Government, but negotiated directly between parties an arm’s length.
“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 1st, 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% to the general public”.
With NNPC selling at almost a thousand Naira in Abuja, the Public Relations Officer, Independent Petroleum Marketers Association, IPMAN, Chief Chinedu Ukadike said consumers should expect to pay as much as N1,200 per litre in outlets operated by other marketers.
“You can expect the price to be significantly higher than what you have at NNPC stations. Depending on how much depot owners are getting from NNPC, the price may rise to between N1,200 to N1,300 per litre in most parts of the North.
“We don’t know yet how much NNPC will sell and for Independent marketers things will even get more difficult because we don’t have direct access to products from NNPC. We have to buy from those who bought from NNPC”, he stated.
He had earlier lamented that the continued closure of NNPC Retail portal means they would not be able to get access to petrol supplied by the Dangote Refinery through NNPC Limited.
Chief Ukadike explained that the group which owns the majority of petrol stations across the country has also not been informed by NNPC of how it would get supply.
“We are happy that Dangote’s supply has commenced and we have another source of petroleum product supply. We are also not against the policy of selling the product to NNPC. The independent marketers are saying that we also want the refinery to deal directly with us. We have the highest number of filling stations and will be the best partners for the refinery.
“We have not heard anything from NNPC. We are still waiting for their portal to open so that we can make purchases because since the issue started NNPC has not opened their portal”.
When contacted to know the price NNPC Limited will be supplying to other marketers as the sole off-taker of petrol from Dangote Refinery, Mr Soneye said the company was in discussion with the marketers.