The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced the estimated retail prices for petrol being supplied by the Dangote Refinery across Nigeria for September. According to NNPC, the price in Lagos will be N950.22 per liter, the lowest in the country, while residents of Borno State will pay the highest price at N1,019.22 per liter.
NNPC’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, detailed the pricing variations in a statement. Other notable prices include N999.22 per liter in Sokoto, Oyo, and the FCT, while Kano residents will pay N992.22 per liter. These prices reflect the September 2024 pricing.
This disclosure follows a recent controversy over the actual price at which NNPC purchased fuel from the Dangote Refinery. NNPC had previously stated that it bought fuel from the refinery at N898 per liter, a claim that Dangote Refinery disputed. The refinery described NNPC’s statement as “misleading and mischievous,” urging the public to wait for the official pricing announcement by the Technical Sub-committee on Naira-based crude sales to local refineries, set for October 1, 2024.
Dangote Refinery clarified that the current stock of crude was procured and sold to NNPC in dollars, resulting in significant savings compared to current import costs. However, the refinery did not disclose the exact price at which it sold the fuel to NNPC.
NNPC maintains that, in accordance with the Petroleum Industry Act (PIA), petrol prices are not government-set but negotiated directly between parties. NNPC has confirmed paying Dangote Refinery in U.S. dollars for the September 2024 petrol offtake, with Naira transactions slated to begin on October 1, 2024. If the pricing is disputed, NNPC expressed willingness to pass any discounts received from Dangote Refinery on to the general public.
The estimated pricing document reveals additional cost details, including a Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99, an inspection fee of N0.97, and a distribution cost in Lagos set at N15. Additionally, a margin of N26.48 is included in the cost structure.
This pricing structure indicates that petrol prices will vary across different states, with transportation costs affecting the final price.
