The Nigerian National Petroleum Corporation, NNPC has started lifting Premium Motor Spirit (PMS) otherwise known as petrol, from the Dangote Refinery in Lagos.
The lifting started on Sunday, September 15, 2024, DAILY GIST reports
It was gathered that at least 300 trucks are stationed at the refinery in readiness to lift the products
This has sparked excitement among Nigerians who anticipate cheaper petrol prices at filling stations.
Insiders have confirmed that the Dangote refinery will supply petrol to the NNPC at a price of N766 per litre.
This reduced price is attributed to the deal between NNPC and Dangote.
A major marketer, who spoke on condition of anonymity, explained, “What we are going to see based on the deal between NNPC and Dangote is similar to the DSDP (Direct Sale of crude oil and Direct Purchase of petroleum products) transactions that used to exist between NNPC and foreign refineries in the past.
“And this has really impacted positively on the price of petrol that Dangote is selling to NNPC, because the cost is around N766/litre. But I can’t tell how much NNPC is going to sell to marketers now.”
A senior aide to President Bola Tinubu also confirmed the N766 per litre price.
However, marketers have indicated that the final retail price will depend on additional costs such as transportation, levies, and margins.
Chinedu Okoronkwo, a senior official of the Independent Petroleum Marketers Association of Nigeria (IPMAN), estimated that marketers could sell petrol at N790 per litre in Lagos and up to N820 per litre in distant northern regions.
Gillis-Harry, another IPMAN official, welcomed the reduced price. He said, “We are ready to support Dangote, but they need to engage with us, as we control over 6,000 retail outlets.”
Currently, Nigerians pay N855 per litre at NNPCL retail stations in Lagos, with major marketers selling at N920 to N1,200 per litre
The Nigerian government has announced that Dangote refinery will only sell Petrol exclusively to NNPC after which marketers can buy from the company.
From October 1 this year, the NNPC will commence the supply of about 385,000 barrels per day of crude oil to the Dangote Refinery to be paid for in Naira.
In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
This is expected to lower the price of fuel in the country.
