Hopes for a potential reduction in fuel prices following the anticipated petrol supply from Dangote Refinery have been dashed.
DAILY GIST reports that NNPC and the Dangote refinery are currently at loggerheads over the pricing of the PMS.
The NNPCL earlier announced that it bought petrol from the Dangote Refinery at N898 per litre, a price higher than the imported ones.
The Nigerian National Petroleum Company, NNPC Limited on Monday then increased the price of Petrol from the previous N855.
The Gantry price per ton at the refinery was quoted to be $736 which is equivalent of $0.55 per litre.
At the official exchange rate of N1,637.59 to one dollar, the NNPCL said the cost of one litre of petrol stands at N898.78.
For each litre of petrol, NNPCL said apart from landing cost from refineries, there are statutory and regulatory charges suppliers must pay. Those charges include NMDPRA fee, N8.99; inspection fee, N0.97; distribution cost (Lagos) N15.00; and profit margin, N26.48.
They must be added to the product’s landing cost to determine the pump price of petrol.
Oil and gas experts analyzed that Nigerians should not expect the price of petrol to be lower just because it is refined in the country, as market forces would continue to determine prices.
The Dangote Refinery also did not promise cheaper petrol.
In a recent interview with BBC Hausa, Aliko Dangote, president of the Dangote Group, said due to the high cost of the dollar and the fact that his refinery would not receive subsidy from NNPCL, it would be impossible for his facility to sell petrol below current market prices.
According to NNPC, the new shift in prices of PMS was based on the petrol price lifted from the Dangote Refinery.
The company said it will sell at a price above N1,000 per litre in the far north.
The NNPC spokesperson, Olufemi Soneye, disclosed this on Monday, in a statement titled: ‘NNPC Ltd releases estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’.
NNPCL on Sunday had stated that Petrol supply from Dangote Refinery was at N898 per litre.
But Dangote refinery, in a statement, said plant cost per litre of N898 as claimed by NNPC was “misleading and mischievous”.
The refinery, however, failed to tell Nigerians the exact price at which the petrol was sold to NNPC Ltd.
It also denied selling PMS to NNPC in naira.
Reacting to Dangote’s statement, Soneye, insisted that the price per litre from the refinery is N898.
The NNPC said it is paying the refinery in US dollars for September 2024 petrol offtake, as Naira transactions will only commence on 1 October.
He said: “If it is not N898, then what is the price? Let them 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, in a statement on Monday explained that the new price of Petrol will sell for N1,019/litre in places like Borno State and N999.22 in Abuja, Sokoto, Kano, and others.
The lowest price, according to an infographic released by the NNPC, is N950 in Lagos and its environs.
In Oyo, Rivers and other areas in the South, it will be N960 per litre.
The statement reads: “The NNPC Ltd has released estimated prices of Premium Motor Spirit, also known as petrol (obtained from the Dangote Refinery) in its retail stations across the country.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” he stated.
The company explained that the product it loaded on Sunday was paid for in dollars.
“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 1, 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 per cent to the general public.”
He stated that the estimated pump prices of PMS were obtained from the Dangote Refinery and will be across NNPC retail stations in the country, based on September 2024 pricing.
The positions of the two oil stakeholders have cast new controversy around petrol pricing as Nigerians seek a reduction in fuel prices.
