The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced estimated retail prices for Premium Motor Spirit (PMS), commonly known as fuel, sourced from the Dangote Refinery across its stations nationwide. According to the NNPC Ltd., these prices are based on September 2024 rates.
NNPC Ltd. disclosed that it acquired the fuel from the Dangote Refinery at a rate of N898 per litre. Mr. Olufemi Soneye, Chief Corporate Communications Officer for NNPC Ltd., confirmed this information on Monday. This announcement came in response to Dangote Refinery’s denial of the NNPC Ltd.’s initial disclosure, which the refinery labeled as ‘misleading and mischievous.’
The News Agency of Nigeria (NAN) reports that the Dangote Refinery began its first PMS loading at its Ibeju-Lekki facility on Sunday. The refinery criticized the NNPC Ltd.’s pricing statement, asserting it undermined the refinery’s achievements in addressing Nigeria’s energy needs. Dangote Refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, urged the public to disregard the NNPC Ltd.’s pricing and to await a formal announcement from the Technical Sub-committee on Naira-based crude sales to local refineries, scheduled for October 1.
Chiejina did not disclose the exact selling price but noted that the refinery’s crude was procured in U.S. dollars and sold to NNPC Ltd. in dollars, offering significant savings compared to current imports. In response, NNPC Ltd. stated that, under the Petroleum Industry Act (PIA), PMS prices are determined through direct negotiations rather than government-imposed rates.
The NNPC Ltd. emphasized that it is paying Dangote Refinery in U.S. dollars for September 2024 PMS offtake, with Naira transactions set to begin on October 1. The company also indicated that if the pricing is contested, any discounts from the refinery would be fully passed on to the public.
According to the estimated pump price document, the price of fuel in Lagos is projected to be N950.22 per litre at NNPC’s retail stations, with higher prices expected in other states due to transport costs. The document also details that NNPC Ltd. paid the refinery N898.78 per litre for PMS, with additional costs including N8.99 for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee, N0.97 for inspection, N15 for distribution in Lagos, and a margin of N26.48.
Written by: Blossom kugbere.