NNPC Releases PMS Prices from Dangote Refinery, States It Bought at N898 per Litre
By Emmanuella Anokam
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the estimated prices of Premium Motor Spirit (PMS), commonly referred to as fuel, sourced from the Dangote Refinery for distribution across its retail stations nationwide.
In a statement on Monday, Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., revealed that for September 2024, the company purchased PMS from the Dangote Refinery at a price of N898 per litre.
This announcement follows a denial by the Dangote Refinery on Sunday, in response to NNPC Ltd.’s initial disclosure regarding the pump price. The refinery accused NNPC Ltd.’s statement of being “misleading and mischievous,” alleging that it aimed to undermine the refinery’s milestone achievement in addressing Nigeria’s energy challenges.
The News Agency of Nigeria (NAN) reports that Dangote Refinery began its first loading of PMS from its facility in Ibeju-Lekki, Lagos State, on Sunday. However, Anthony Chiejina, Group Chief Branding and Communications Officer of the refinery, stated that the pricing information shared by NNPC Ltd. should be disregarded. He urged Nigerians to await an official announcement on PMS pricing from the Technical Sub-committee on Naira-based crude sales to local refineries, scheduled for October 1.
Chiejina did not disclose the specific price at which the refinery sold fuel to NNPC Ltd. but mentioned that the current stock of crude was procured in U.S. dollars and sold to NNPC Ltd. in dollars, with considerable savings compared to current import prices.
In response, NNPC Ltd. reiterated that, under the Petroleum Industry Act (PIA), PMS prices are not set by the government but are negotiated directly between the parties involved. The company confirmed that its payment to Dangote Refinery for September 2024 PMS offtake was made in U.S. dollars, with Naira transactions expected to begin on October 1, 2024.
“The NNPC Ltd. is open to any potential discount offered by the Dangote Refinery, which will be fully passed on to the public,” said the NNPC spokesperson. “Attached to this statement are the estimated pump prices of PMS obtained from Dangote Refinery across NNPC Retail Stations nationwide, based on September 2024 pricing.”According to the pricing document, the estimated pump price in Lagos is N950.22 per litre for PMS sourced from Dangote Refinery, with prices in other states expected to be higher due to transportation costs. The NNPC Ltd. reportedly paid N898.78 per litre to the refinery, with additional costs including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99, an inspection fee of N0.97, a distribution cost of N15 (for Lagos), and a margin of N26.48.
(NAN)
