The Nigerian National Petroleum Company (NNPC) Limited has said it would be grateful for any discount from Dangote Refinery as it released an updated pricing chart for Premium Motor Spirit (PMS) supplied by the refinery for September 2024.
The chart shows significant regional variations in fuel prices across the country.
According to the NNPC, this potential discount, if granted, would be passed completely to the public.
Borno residents to spend more on petrol
According to the pricing data, Borno State is expected to pay the highest pump price at N1,019.22 per liter, while Lagos will see the lowest rate at N950.22 per liter.
The variation in prices is attributed to transportation costs and distribution challenges faced by different regions.
Sokoto and Kaduna states also face steep prices of N999.22 per liter each, while Oyo residents will pay N960.22 per liter.
Pricing Breakdown
The pricing breakdown is based on the Platts10ppm rate of $690 per metric ton on September 13, 2024, which translates to $0.52 per liter or N842.61 per liter.
Dangote Refinery’s gantry price stands at $736 per metric ton, equivalent to N898.78 per liter.
Other charges, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99, an inspection fee of N0.97, distribution costs of N15.00 (specifically for Lagos), and a margin of N26.48, are factored into the final pump prices.
NNPC emphasized that these prices are not government-set but are the result of negotiations under the Petroleum Industry Act (PIA) Section 206 (1).
It also mentioned that payments to Dangote Refinery are being made in U.S. dollars for the September consignment, hence the importance of any potential discounts that could alleviate consumer prices.
The NNPC noted: “PMS prices are not set by Government, but negotiated directly between parties on an arm’s length basis – PIA Section 206 (1).
“NNPC is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on local production.
“If the quoted pricing (Platts 10ppm FOB AR Barge + $46 premium) is disputed, NNPC will be grateful for any discount from Dangote Refinery, which will be passed on 100% to the public.”
What you should know
- Olufemi Soneye, Corporate Communications Manager of the NNPC, earlier said that claims of buying PMS at N1,300 or N760 from Dangote were incorrect and that N898 was the current loading price.
- However, the Dangote Refinery denied selling petrol at N898 per litre to the NNPC.
- It said that the refinery sold the products to NNPCL in dollars.
- The sale of crude oil in naira is expected from October 1, which would lead to the sale of petrol in naira between the NNPC and Dangote Refinery.
