The Nigerian National Petroleum Company has has tightened its grip on the Nigerian oil gas sector as it increased the price of petrol by 11 per cent, the second increase in two weeks and a day after it started purchasing the fuel from the giant Dangote oil refinery on the outskirts of Lagos. NNPC said it had increased gasoline prices from N858 a litre to N950 in Lagos and as high as N1,019 in northeastern states. It said it buys the product at N898 per litre from the refinery. Nigeria expects the 650,000 barrels per day refinery to end years of imports of gasoline, which had been subsidised for decades until President Bola Tinubu began removing support when he took office in May last year. NNPC released a breakdown of estimated petrol prices from the Dangote refinery in its retail stations that will be a reference price for other filling stations in the country.
In a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye, the company said that it 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 said that 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 would be passed directly to the public, ensuring transparency and fairness in pricing. The petrol prices for other states are 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 and Lagos State: N950.22
