NNPCL Fixes Retail Pump Price Of Petrol At N950.22 From Dangote Refinery ,To Be Reviewed In October

The Nigerian National Petroleum Company Limited has put per litre pump price of petrol at its retail stations in Lagos as well as other states in the country to between N950.22 and N1,019.22 , despite the lifting of the product from the Dangote refinery which commenced on Sunday 

Chief Corporate Communications Officer of  the company ,Olufemi Soneye who announced the breakdown of estimated petrol prices in a statement, says the company is buying petrol in dollars from the Dangote refinery for September and sales in Naira would begin from October.

The statement reads, “The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.”

 Furthermore, the company noted that the estimated petrol prices from its retail station in Lagos are around N950.22 per litre. This figure was derived after the following calculations.

The NNPCL also revealed the estimated pump price for Premium Motor Spirit (PMS) for September 2024, as determined by Dangote Refinery pricing.

According to the NNPC, PMS prices are not set by the government but are instead negotiated directly between parties on an arm’s length basis, in line with Section 206 (1) of the Petroleum Industry Act (PIA).

For the September 2024 PMS offtake, NNPC has confirmed that payments to Dangote Refinery will be made in U.S. dollars, with transactions in naira set to commence from 1st October 2024.

The base pricing includes a Platts 10ppm price of $690/MT plus a $46 premium, resulting in a total of $736/MT.

Additionally, NNPC has indicated that if any dispute arises over the quoted pricing, it would welcome any potential discounts from Dangote Refinery.

Any such reductions according to NNPCL,  will be passed directly to the public, ensuring transparency and fairness in pricing.

 The petrol prices for other states are listed below; 

Sokoto State: N999.22

Kano State: N999.22

Kaduna State: N999.22

FCT: N992.22

Borno State: N1,019.22

Oyo State: N960.22

Imo State: N980.22

Rivers State: N980.22

Lagos State: N950.22

Backstory  

The clarification from the NNPCL confirms an earlier statement from the Dangote refinery that it sold petrol to the NNPCL in dollars rather than the earlier agreed naira.

The firm explained that the sales in Naira would begin in October as the earlier crude oil stock was paid for in dollars rather than Naira. 

The Dangote refinery had earlier denied selling petrol to the NNPC at N898 per litre stating it is still negotiating prices with the federal government.

The Dangote refinery began distribution of petrol to NNPC only yesterday after months of delay.

However, it had earlier noted that prices would be disclosed after the agreement with the federal government’s technical sub-committee on crude oil sales in Naira.