As pricing of Dangote Petrol continues to be shrouded in secrecy and the two actors, NNPCL and the federal government involved in bulk passing, Nigerians continue to be the losers.
Consequently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) says it doesn’t make sense for the Nigerian National Petroleum Company Limited (NNPCL) to sell petrol lifted from the Dangote Refinery higher than imported ones.
IPMAN National Welfare Officer, John Kekeocha, stated this on Channels Television’s The Morning Brief breakfast programme on Monday.
“If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?” he queried.
The NNPCL began loading the first batch of petrol from the Dangote Refinery on Sunday, saying it got petrol at N898 per litre from the private refinery.
Before lifting petrol from the Dangote Refinery on Sunday, NNPCL retail outlets in Lagos sell petrol for around N855 but said a litre of Dangote petrol now sell for N950 per litre in Lagos and N1,019 in Borno.
However, Dangote Refinery denied selling petrol to the NNPCL at N898. A spokesman for the refinery Anthony Chiejina in a statement late Sunday described the claim by the NNPCL as “misleading and mischievous”.
“It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature,” Chiejina said.
NNPCL insisted that it got petrol from Dangote Refinery at N898 per litre and challenged the latter to release the price it sold petrol. The NNPCL further released a breakdown of pricing it sell Dangote petrol at its filling stations across the country.
Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.
The refinery, which was initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.
The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.
Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries non-operational. The country is heavily reliant on imported refined petroleum products, with the state-run NNPC being the major importer of the essential commodities.
Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to over ₦1000/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.
NNPC Announces Prices Of Dangote Petrol For Different States In Nigeria
The Nigerian National Petroleum Company (NNPC) Limited has announced prices of Dangote petrol for its retail stations across different states in Nigeria.
In a social media post on Monday, the NNPC said the estimated pump price is based on prices set by the Dangote refinery for its petroleum products.
According to the price map shared by the NNPC, residents in the northern part of Nigeria will pay more for the product while those in Lagos will pay less.
The company reassured Nigerians that in the event of any pricing disputes, NNPCL would pass on any discounts from Dangote Refinery directly to the public.
The statement partly reads, “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 the Government but negotiated directly between parties on an arm’s length.
“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.”
Below are the estimated prices of petrol across the country provided by NNPCL
Lagos State: N950.22 (South West)
Oyo State: N960.22 (South West)
Rivers State: N980.22 (South-South)
Imo State: N980.22 (South East)
FCT: 992.22 (North Central)
Kaduna: N999.22 (North West)
Kano: N999.22 (North West
Sokoto: N999.22 (North West)
Borno State: 1,019.22 (North East)
It is suggested that aside from Lagos and Abuja, every region will have an even price. This means that since the expected petrol price for Oyo State (South West) is N960.22/litre other states in the region like Osun, Ekiti, and others are expected to buy it at that price too.
The NNPC began loading PMS from the Dangote refinery on Sunday 15th September, 2024 after months of delays both from the NNPC on the price and other business details and also the final work on the part of the refinery.
Before operations began, Femi Soneye, Chief Corporate Communications Officer (CCCO) of NNPC Ltd, announced on Saturday that by the end of the day, at least 300 trucks would be positioned at the refinery’s loading gantry, ready for the scheduled petrol loading on Sunday, September 15.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, recently announced that NNPCL would serve as the exclusive off-taker for refined petrol from the Dangote Refinery.
During the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), representing the Finance Minister, explained that while diesel from Dangote Refinery would be available for purchase in Naira to any interested off-taker, PMS (petrol) would only be sold to NNPCL, which would then distribute it to various marketers.
Additionally, he confirmed the finalisation of agreements and procedures for implementing the Federal Executive Council (FEC) approval, which allows for the sale of crude oil to local refineries in Naira and the corresponding purchase of petroleum products in Naira. This decision was previously endorsed by the FEC under President Tinubu’s leadership.
The government explained that this initiative was designed to ease pressure on the Naira, cut down on unnecessary transaction costs, and enhance the availability of petroleum products across the country.