The Nigerian National Petroleum Company Limited (NNPCL) has announced that petrol sourced from the Dangote Refinery will be sold at a minimum of ₦950 per litre in Lagos.
This revelation was made by the company’s spokesperson, Olufemi Soneye, on Monday in a press release titled, “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing.”
In the statement, NNPCL emphasized that it has published the projected pump prices of Premium Motor Spirit (PMS), commonly referred to as petrol, across its retail stations in Nigeria.
According to Soneye, these prices, which apply to petrol from the Dangote Refinery, are not regulated by the government under the provisions of the Petroleum Industry Act (PIA). Instead, they are determined through negotiations between the involved parties.
The spokesperson further clarified that payments for the September supply of PMS from the Dangote Refinery are being made in U.S. dollars. Naira-based transactions are expected to begin on October 1, 2024.
NNPCL also reassured the public that should any price adjustments or discounts be offered by the Dangote Refinery, they will be fully passed on to consumers.
To provide greater clarity, the NNPCL shared an infographic detailing the expected regional prices. In Lagos, petrol is expected to retail at ₦950 per litre, while prices could soar as high as ₦1,019 per litre in more remote locations such as Borno State.
In the nation’s capital, Abuja, as well as Sokoto, Kano, and other Northern states, prices are projected at ₦999.22 per litre. In the Southern states like Oyo and Rivers, the price will likely be ₦960 per litre.
This announcement follows a disagreement between the Dangote Group and NNPCL on Sunday regarding the petrol price, with Dangote Group contesting an earlier claim by NNPCL that the refinery was selling PMS at ₦898 per litre. Dangote failed to release its price list but disputed the figures publicly.
On Sunday, the Dangote Refinery began loading the first batch of petrol, signaling the start of domestic fuel production from the facility.
According to NNPCL’s spokesperson, 16.8 million litres of petrol have been lifted so far, with 70 trucks dispatched by 4 p.m. that day.
Soneye rejected earlier claims that NNPCL purchased the petrol at ₦1,300 or ₦760 per litre, confirming that the refinery’s initial price was ₦898 per litre.
This event marks a significant milestone for Dangote’s $20 billion refinery, located in Lagos. Having officially commenced operations last December, the facility has a processing capacity of 350,000 barrels of crude oil per day, with plans to reach 650,000 barrels by the end of the year.
Already, the refinery has begun supplying diesel and aviation fuel, and now, petrol.
In a counterstatement issued late Sunday, Anthony Chiejina, a spokesperson for Dangote Refinery, categorically denied the NNPCL’s claim that it had sold petrol at ₦898 per litre. Chiejina described the assertion as “misleading and mischievous” and suggested that it was a deliberate attempt to downplay the refinery’s achievements in addressing Nigeria’s energy challenges.
The statement urged Nigerians to disregard the claim and wait for an official announcement regarding PMS pricing, expected to be issued by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by President Bola Ahmed Tinubu.
This committee is slated to commence work on October 1, 2024, when Naira-denominated crude sales are expected to begin.
Chiejina also emphasized that Dangote Refinery’s current crude stock was procured in U.S. dollars, enabling significant cost savings compared to imported petrol.
He assured that there would be adequate petrol supply across all parts of Nigeria, including the most remote regions, as a result of the refinery’s production.
