Campus Business (September 16, 2024) – The Nigerian National Petroleum Corporation (NNPC) Ltd has announced the estimated pump prices for Premium Motor Spirit (PMS), also known as petrol, sourced from the Dangote Refinery. According to the NNPC’s latest release, petrol will retail for ₦950.22 per litre in Lagos and ₦1,019.22 per litre in Borno, based on the September 2024 pricing.

This marks a significant fuel hike as the new petrol prices are rolled out for NNPC retail stations across the country. Prices will vary by state, with notable prices of ₦999.22 per litre in Sokoto and ₦960.22 per litre in Oyo State.

Details of Pricing

The pricing for September 2024 was negotiated between NNPC Ltd and the Dangote Refinery in accordance with the Petroleum Industry Act (PIA), which stipulates that petrol prices are not set by the government but are negotiated between parties on an arm’s-length basis.

Key details of the pricing include:

• Platts pricing on September 13, 2024, was quoted at $690 per tonne, which translates to ₦842.61 per litre.
• A premium of ₦56.17 and Dangote Refinery Gantry pricing of $736 per tonne.
• Additional costs such as NMDPRA fees, inspection fees, distribution costs, and margins culminate in the final estimated pump prices.

Currency and Payment Structure

The NNPC further clarified that for the month of September, it is making payments to the Dangote Refinery in USD, with Naira transactions only commencing on October 1, 2024. This aligns with the company’s current arrangement for September PMS offtake.

Additionally, the NNPC noted that if the pricing quoted by Dangote Refinery is disputed, any potential discounts obtained from Dangote will be passed directly to the public in full.

Breakdown of Estimated Pump Prices Across Key States:

• Lagos: ₦950.22 per litre
• Oyo: ₦960.22 per litre
• Sokoto: ₦999.22 per litre
• FCT, Abuja: ₦999.22 per litre
• Borno: ₦1,019.22 per litre

Statement from NNPC

In a statement, the Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, emphasized that the prices were reflective of the Dangote Refinery’s PMS pricing for September and were subject to any potential negotiations or discounts that could benefit the public.

“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 percent to the general public,” the statement read.

Looking Ahead

This development comes as Nigeria continues to navigate the changes in its energy market, following the opening of the Dangote Refinery earlier this year. With the Naira-denominated transactions set to begin in October, further adjustments to the pump prices may be expected in the coming months, dependent on global oil prices and local economic factors.

What About Other Marketers?

Given that NNPC continues to sell petrol at the most affordable rates across the country, the question arises: What prices should consumers expect from other marketers? With NNPC’s pricing for Lagos at ₦950 per litre, it is likely that independent marketers and other operators could sell at higher rates, potentially pushing petrol prices further up across the country.

Stay tuned to Campus Business for more updates on the latest developments in the Nigerian fuel market.