The Nigerian National Petroleum Company (NNPC) has provided a detailed breakdown of the estimated petrol prices that will be charged at its retail stations across Lagos and other states, with products sourced from the Dangote Refinery. This information was disclosed in an official statement issued by Olufemi Soneye, the NNPC’s Chief Corporate Communications Officer.
According to the statement, NNPC will be purchasing petrol from the Dangote Refinery in U.S. dollars throughout the month of September, with sales to the public in Naira expected to commence from October.
The company emphasized that Premium Motor Spirit (PMS), commonly referred to as petrol, will be priced based on a market-driven approach rather than being government-regulated.
The statement reads: “NNPC Ltd has released estimated prices for Premium Motor Spirit (PMS) obtained from the Dangote Refinery, which will be available at its retail stations nationwide.“
For its Lagos retail outlets, NNPC has estimated the pump price of petrol to be around N950.22 per litre. This figure was arrived at following an extensive calculation of various cost components, which were detailed in the report.
The NNPC further explained that the estimated prices for PMS in September 2024 are determined by the pricing model used by the Dangote Refinery.
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Importantly, the pricing structure is governed by commercial agreements and is not subject to direct government regulation, in accordance with Section 206 (1) of the Petroleum Industry Act (PIA).
As per NNPC’s arrangement with the Dangote Refinery, payments for the September 2024 petrol offtake will be conducted in U.S. dollars. However, starting from October 1, 2024, NNPC will transition to conducting its transactions with Dangote in Naira.
The base price for petrol was calculated using the Platts 10 parts per million (ppm) pricing index, which is currently set at $690 per metric ton (MT). An additional premium of $46 per metric ton brings the total base price to $736 per metric ton.
The petrol prices for other states are listed below;
- Sokoto State: N999.22
- Kano State: N999.22
- Kaduna State: N999.22
- FCT: N992.22
- Borno State: N1,019.22
- Oyo State: N960.22
- Imo State: N980.22
- Rivers State: N980.22
- Lagos State: N950.22
NNPC also noted that if any issues arise regarding the quoted prices, it is open to negotiating potential discounts with the Dangote Refinery.
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In the event that price reductions are secured, these savings would be passed directly to the consumers. The company underscored its commitment to transparency and fairness in the pricing of petrol, ensuring that any benefits are shared with the Nigerian public.
In conclusion, the NNPC’s approach to petrol pricing reflects a shift toward market-based mechanisms, with an emphasis on transparency, fairness, and adherence to regulatory frameworks established under the Petroleum Industry Act. The company’s efforts to secure favorable terms with the Dangote Refinery aim to ensure that consumers are not only informed but also benefit from competitive pricing where possible.