The Nigerian National Petroleum Company Limited (NNPCL) has disclosed the pricing structure for petrol sourced from the Dangote Refinery, revealing that petrol prices will vary across the country, with the northern regions facing the highest rates.
In a statement released on Monday, titled “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing,” NNPCL spokesperson Olufemi Soneye provided details on the price variations.
Regional Petrol Pricing
- In Borno State, petrol is expected to reach ₦1,019 per litre.
- In Abuja, Sokoto, Kano, and other northern states, the price will be ₦999.22 per litre.
- In contrast, prices in southern regions like Oyo and Rivers will be lower, at ₦960 per litre.
- The lowest price, ₦950 per litre, will be available in Lagos and surrounding areas.
Logistics and Distribution Challenges
The variation in petrol prices highlights the logistical and distribution challenges NNPCL faces when transporting fuel to different parts of the country, especially the north.
NNPCL clarified that petrol prices are determined by negotiations between relevant parties, in line with the Petroleum Industry Act (PIA). The prices are not set by the government but agreed upon commercially at arm’s length.
Payment in USD and Potential Discounts
NNPCL also confirmed that payments for petrol from the Dangote Refinery are currently being made in USD for September 2024 supplies, with naira transactions set to begin on October 1, 2024. The company added that any potential discounts from the Dangote Refinery would be fully passed on to the public.
This announcement follows a dispute between NNPCL and Dangote Group regarding the pricing of petrol. While NNPCL claimed Dangote was selling petrol at ₦898, the Dangote Group did not release an official price list.
The new prices reflect the ongoing dynamics of Nigeria’s fuel supply and the impact of new local production from the Dangote Refinery.