The Nigerian National Petroleum Company Limited (NNPCL), on Monday, released the estimated price of Premium Motor Spirit (PMS) sourced from the Dangote Refinery, with the petrol pump price expected to be sold for N950.22 in Lagos and N1,019.22 in Borno State.
This is coming a few hours after the nation’s oil company commenced lifting petrol from the 650,000 barrels per day Dangote refinery located in Ibeju-Lekki, Lagos State, with over 100 trucks.
Following the initial increase in pump price from 617 to 855, Nigerians have been lamenting the new hike, clamouring for a drop in the price of PMS. Many expect that with the commencement of the indigenous Dangote refinery, the hike in petrol price will be a thing of the past.
Nigerians to pay more for petrol in September
Nigerians’ expectation of a possible drop in petrol price immediately after Dangote, an indigenous refinery, commenced sales of PMS is still miles away from reality. While the country will pay more for Dangote petrol in September 2024, above the earlier current N855 per litre at NNPCL retail outlets, the hope is not entirely dashed.
The PMS, which currently costs N855 per litre, is expected to increase to N950 and above following NNPCL’s release of the new estimated Dangote refinery petrol price.
However, petrol prices from Dangote Refinery may be reviewed in the coming month, as the NNPCL is expected to commence sales of crude oil to the refinery in Naira by October 1, 2024.
Zacch Adedeji, a member of the Presidential Committee on the Sale of Crude Oil and Product and Chairman of the Federal Inland Revenue Service (FIRS), confirmed on Friday that President Bola Tinubu’s Naira for crude oil initiative will commence between NNPCL and Dangote refinery by October 1, 2024.
According to him, the NNPCL will supply 385,000 barrels of crude per day to the Dangote Refinery, which will be paid for in Naira.
Pricing War: NNPCL, Dangote disagree
Following the NNPCL’s lifting of the first set of trucks from the Dangote refinery, Tribune Online reports that Olufemi Soneye, NNPC spokesman, disclosed that the nation’s oil company lifted petrol from Dangote Refinery at N898 per litre.
In a swift reaction, Dangote Industries Limited (DIL), through its Group Chief Branding and Communications Officer, Anthony Chiejina, faulted Soneye for attempting to play to the gallery about petrol pricing from the refinery.
According to a late-night statement from the refinery, the claim of N898 per litre by the NNPCL spokesman “is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedevilled the economy in the past 50 years.”
The company noted the current crude supply being processed at the refinery was sourced outside the country and in dollars. It, however, urged Nigerians to disregard the ‘malicious statement’ and await the official announcement on pricing from “the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu.”
But it didn’t end there; the NNPCL Spokesman, Soneye, in a midnight statement releasing the estimated pump price of petrol from Dangote refinery, insisted that the nation’s oil company lifted petrol at N898 per litre from the refinery.
Soneye challenged Dangote, saying, “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.”
Dangote petrol: Nationwide Price Discrepancies and Why
Following the announcement of the new pump price of PMS from the Dangote refinery, Nigerians have noted variations in the prices of PMS across different parts of the country. The product is expected to sell for N950.22 in Lagos and N1,019.22 in Borno State.
Other states, such as Sokoto, Kano, Kaduna, and the Federal Capital Territory (FCT), are projected to see prices around N999 per litre, while Rivers and Imo are expected to experience lower pump prices, around N980.22 per litre. In Oyo State, the price is estimated to be N960.22 per litre.
The discrepancies in price are due to differences in the distribution costs of PMS across the states.
For instance, the distribution cost in Lagos is N15.00, while in Borno, it is N84. In Rivers and Imo, it is N45, whereas in Sokoto, Kano, Kaduna, and the Federal Capital Territory (FCT), it is N64, and in Oyo, it is N25.
Petrol landing cost: Marketers’ threat of boycotting Dangote
Tribune Online reports that the Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier expressed concern over the delay in releasing the price of PMS from the Dangote refinery and threatened to boycott the Refinery petrol amidst uncertainties over PMS landing cost.
Abubakar Maigandi, IPMAN National President, highlighted that the landing cost of imported PMS currently stands at approximately N1,120 per litre.
According to him, oil marketers will have no choice but to continue importing petrol if the landing cost is cheaper than that of the Dangote refinery.
However, according to the NNPCL, the sole buyer, the September petrol price from the Dangote refinery is lower than the landing cost of imported petrol, as disclosed by the IPMAN boss.
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