Victor Ezeja
The Nigeria National Petroleum Company Limited (NNPCL), has released estimated pump prices of Premium Motor Spirit (PMS), also known as petrol, for September 2024 for its retail outlets, indicating variations across states in Nigeria.
According to the new price template, while petrol will sell at ₦950.22 per litre in Lagos, ₦992.22 in Abuja, it will go as high as ₦1,019.22 in Borno in the North-east region.
Join our WhatsApp ChannelIn other northern states like Kaduna, Kano, and Sokoto, petrol will be sold at ₦999.22 per litre.
Also, the pump price of petrol is estimated to be ₦960.22 in South-west state of Oyo, ₦980.22 in Imo in South-east and Rivers in South-south.
This was revealed in a statement and chart released by NNPLC Chief Corporate Communications Officer, Olufemi Soneye, on Monday morning.
According to Soneye, the new price estimates are based on petrol pricing from Dangote Refinery with Platts 10 parts per million (ppm) price set at ₦690 per metric ton as of Friday, 13th September 2024.
As shown in the NNPCL chart, Dangote Refinery gantry price stands at ₦736 per metric ton, which translates approximately to ₦898.78 with the exchange rate of ₦1,637.59.
The chart also detailed other costs that made the estimated pump price reach ₦950.22 in Lagos such as Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee, inspection, distribution cost and NNPCL profit margin.
Soneye admitted that NNPCL is paying Dangote Refinery in dollars for the September 2024 off-take while transactions in naira is scheduled to begin in October when the national oil company will commence supply of crude to the refinery.
NNPCL clarified that in line with the provisions of the Petroleum Industry Act (PIA), “PMS prices are not set by the Government, but negotiated directly between parties on an arms length.”
It noted that if the quoted prices are disputed, the company would be grateful for any discount from the Dangote Refinery, assuring that such would be passed on 100% to the consumers.
“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,” Soneye stated.
READ ALSO: Dangote Refinery: We Sold Petrol Cheaper To NNPCL, Debunks N898 Per Litre Claim
Prime Business Africa had reported that NNPCL lifted the first batch of PMS from Dangote Refinery on Sunday.
According to the agreement between Dangote Refinery and NNPCL as brokered by the Federal Government’s Technical Sub-Committee on the sale of crude oil in naira implementation, the national oil company will be the sole off-taker of PMS from the refinery while diesel can be sold to any interested marketer.
Dangote Refinery had on Sunday evening reacted to statement attributed to the NNPCL spokesperson that it lifted PMS from the refinery at ₦898 per litre. The company in a statement by its Group Chief Branding and Communications Officer, Anthony Chiejina, described the comment as both “misleading and mischievous.”
The Dangote Group spokesperson added that it is deliberately aimed at undermining the “milestone achievement” recorded on Sunday with the successful commencement of refining and supply of petrol by the Dangote Refinery to the Nigerian market through NNPCL which is a significant step towards achieving energy self-sufficiency and security that has been stalled for the past 50 years in the country.
He urged the public to disregard the statement, maintaining that a formal announcement on the pricing will be made in October by the Technical Sub-Committee on Naira-based crude sales to local refineries when NNPCL begins supply of crude in the local currency.
However, the NNPCL insisted on the price it quoted.
The latest hike in pump price of petrol may further exacerbate the already cost-of-living crisis across the country as noted by analysts.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
