To say NNPC Limited has dashed the hopes of petrol prices reduction with the release of their new pricing template that raised pump prices to N950 per litre is simply stating the obvious. Upon Dangote Refinery’s commencement of petrol supply yesterday there was an increment of about 11percent in their pump price.
Following disagreements between NNPC and Dangote Refinery over product price, a statement by Chief Corporate Communications Officer, NNPC, Olufemi Soneye, resolved that Dangote petrol will not sell below the regular price.
A document, titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply”, showed that petrol from the refinery will have a base cost of N898 per litre.
According to Vanguard report additional costs such as Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, charge of N4.495, Midstream and Gas Infrastructure Fund (MDGIF) charge of N4.495, distribution and logistics cost of N42.45 all added up to bring the effective pump price in Lagos area to N950.22 per litre from the current rate of N855 per litre.
NNPC also adjusted the price of the product across the country for its stations with Abuja now at N992.22 per litre from N897. The price for Kaduna, Kano and Sokoto has also increased to N992.22 while consumers in Borno area will pay the highest pump price at N1,019 per litre. Prices in Port Harcourt and Imo have been increased to N980.22 per litre.
NNPC insisted that it loaded the product at N898 per litre from Dangote and challenged anyone with contrary figures to make it public.
The company stated: “The NNPC Ltd also wishes to state that in line with the provisions of the Petroleum Industry Act, PIA, PMS prices are not set by government but negotiated directly between parties.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in dollars 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.
“Attached to this statement are the estimated pump prices of PMS (obtained from Dangote Refinery) across NNPC Retail stations in the country, based on September 2024 pricing.”
