New Dangote Petrol Rate Announced

New Dangote Petrol Rate Announced

LAGOS — Hopes for a decrease in petrol prices following the start of supply from Dangote Refinery were dashed yesterday, as NNPC Limited introduced a new pricing template that increased pump prices by approximately 11 percent to N950 per litre…..CONTINUE READING 

The price of petrol had already risen by over 45 percent two weeks ago in anticipation of the refinery’s output. However, amid ongoing disagreements between NNPC and Dangote Refinery over the product’s pricing, a statement from NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that Dangote petrol will not be sold at a lower price.

According to a document titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply,” the base cost of petrol from the refinery is set at N898 per litre. Additional costs, including charges from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Midstream and Gas Infrastructure Fund (MDGIF), along with distribution and logistics fees, bring the effective pump price in Lagos to N950.22 per litre, up from the current N855 per litre.

NNPC also adjusted petrol prices across the country, with Abuja now at N992.22 per litre, and prices in Kaduna, Kano, Sokoto, and Borno reaching N992.22 and N1,019 per litre, respectively. Prices in Port Harcourt and Imo have increased to N980.22 per litre.

NNPC emphasized that it purchased the product from Dangote at N898 per litre and urged anyone with conflicting information to come forward. The company reiterated that under the Petroleum Industry Act (PIA), petrol prices are negotiated between parties rather than set by the government. NNPC confirmed that payments to Dangote Refinery are currently being made in dollars, with naira transactions set to begin on October 1, 2024.

Meanwhile, depot owners and oil marketers have yet to begin receiving deliveries of petrol from the Dangote Refinery. A depot owner noted that they are still sourcing imported petrol from NNPC at N766 per litre, with uncertainty about the price of Dangote Refinery’s product. Independent marketers also reported that they have not yet started selling Dangote petrol and are still purchasing imported fuel at N875 per litre.

Chief Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria (IPMAN) predicted that consumers might face prices as high as N1,200 per litre at independent outlets, depending on the cost to depot owners and the availability of products.

Despite the commencement of Dangote’s petrol supply, there has been no formal response from Dangote Refinery regarding pricing. Olufemi Adewole of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) called for greater transparency in the sector to ensure fair access and pricing.

NNPC revealed that it has supplied over 48 million barrels of crude to Dangote Refinery for processing, with various volumes delivered throughout 2023 and 2024.