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The Nigerian National Petroleum Company Limited (NNPCL) has revealed the projected prices for Premium Motor Spirit (PMS), widely referred to as petrol, which will be sourced from the Dangote Refinery in September 2024.
The pricing estimates provided indicate what consumers across various regions of Nigeria can anticipate paying at NNPCL retail outlets.
In a statement released on Monday through X by Chief Corporate Communications Officer Olufemi Soneye, NNPCL highlighted that, according to the Petroleum Industry Act (PIA), PMS prices are not subject to government regulation but are determined through direct negotiations between involved parties.
The statement indicates that the anticipated price of PMS in Lagos is approximately N950.22 per litre, while consumers in Borno State could face prices as high as N1,019.22 per litre.
Other regions, including Sokoto, Kano, Kaduna, and the Federal Capital Territory (FCT), are expected to see prices around N999.22 per litre.
Soneye also mentioned that NNPCL will make payments to Dangote Refinery in US dollars for the PMS offtake in September 2024, with transactions in Naira set to begin on October 1, 2024.
The company assured the public that in the case of any pricing disagreements, any discounts received from Dangote Refinery would be fully passed on to consumers.
The statement includes, “NNPC Ltd wishes to clarify that, in accordance with the Petroleum Industry Act (PIA), PMS prices are not determined by the government but are negotiated directly between the parties involved.
“NNPC Ltd confirms that it will be paying Dangote Refinery in USD for the September 2024 PMS offtake, with Naira transactions commencing on October 1, 2024.
“NNPC Ltd guarantees that should there be any disputes regarding the quoted prices, any discounts from Dangote Refinery will be entirely passed on to the public.”
The pricing estimates included from NNPCL illustrate the diverse distribution costs throughout the country. The accompanying map indicates that northern areas, including Borno and Sokoto, face elevated prices, whereas southern states such as Rivers and Imo are projected to have lower pump prices, approximately N980.22 per litre.
However, an NNPCL insider had previously indicated that Dangote Refinery’s supply was priced at N898 per liter.
In response, Dangote released a statement describing the suggested plant cost per liter of N898 as “misleading and mischievous.”
On September 15, 2024, Anthony Chiejina, the Group Chief Branding and Communications Officer at Dangote Refinery, issued a statement in response to recent claims.
Chiejina contended that this statement was intentionally crafted to detract from the significant progress achieved on that date in tackling the energy shortages and insecurities that have affected the economy for the last five decades.
He further noted that the refinery sells its products to NNPCL in dollars, leading to considerable savings compared to current import costs.
“With this action, there will be petrol available in every local government area of the country, regardless of their remote nature. We assure Nigerians of the availability of quality petroleum products and an end to the endemic fuel scarcity in the country.”
“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars,” he stated.
In response to Dangote’s statement, Soneye reaffirmed that the refinery’s price per liter is N898.
“If it is not N898, then what is the price? They should inform Nigerians of the actual cost. We have issued Letters of Credit for the product, and there’s an invoice. Let them disclose the price,” Soneye emphasized.