Nigerians will soon face higher petrol prices following the decision of the Nigerian National Petroleum Corporation (NNPC Ltd) to terminate its exclusive purchasing agreement with the Dangote refinery, Premium Times has learnt. Ta.
According to the Premium Motor Spirit (PMS) data pricing framework across eight cities in Nigeria sourced from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the price of petrol at retail outlets across the country is set to rise to at least N991.21 . from current N897/litre.
According to data research, petrol can be sold for as high as N1,029.01 at retail outlets in the capital, Abuja. Petrol price in Lagos is likely to rise to N991.21 per liter, N1,040.31 in Kano and N1,007.35 in Calabar.
The product sells for an average of N1,045.72 per liter at petrol stations in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan and N1,022.63 in Enugu.
Earlier on Monday, this newspaper exclusively reported that the Nigerian National Petroleum Corporation (NNPC Ltd) will end its exclusive purchase agreement with the Dangote refinery, opening a market where other distributors can buy petrol directly from the refinery. .
dangote refinery
This means that NNPC will no longer be the sole off-taker and marketers will be able to negotiate prices directly with the Dangote refinery. This development is consistent with the current practice of fully deregulated products, allowing refineries to sell directly to marketers based on the wishes of buyers and sellers.
Documents from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), obtained from officials at the agency, show the difference in subsidy payments made by NNPC in major cities in Nigeria and how much Nigerians would pump in the absence of the subsidy system. Provides insight into how much to pay.
Financial support promotion article page
Nigerians need trustworthy journalism. Please help us by reporting.
Support fact-based journalism made by Nigerians, for Nigerians. Our thoroughly researched reporting relies on support from readers like you.
By making a small donation you can help us keep our news free and accessible to all.
Every contribution helps ensure we can continue to provide only quality journalism and stories that matter, without paywalls.
Support now x Do it later
NMDPRA is the agency responsible for regulating midstream and downstream petroleum operations in Nigeria, including their technical, operational and commercial activities.
Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
The Premium Motor Spirit (PMS) data pricing framework is based on a weighted average of 10 business days from September 23 to October 4, 2024, with NNPC’s average estimated difference per liter across eight cities. It was shown that he had paid 134.5 Naira.
Following NNPC’s decision to cease its role as the sole off-taker with the Dangote refinery, reference prices at the pump are expected to be applied at fuel stations across the country as subsidy payments will cease.
Although expected price increases are not static and are not determined by any government agency, NMDPRA data provides insight into potential pump prices.
Details of estimated pump price after subsidy
For all cities referenced in this document, the average NAFEM exchange rate used to calculate the pump price was 1,604.89 Naira/USD.
In Lagos State, the estimated pump price is N991.21, but the actual NNPC pump price is N855 per litre. This indicates that NNPC will pay approximately N136.21 as the estimated difference price.
In Abuja, the estimated pump price is 1,029.01 Naira, but the actual pump price is 897 Naira per liter. This means that NNPC will pay an estimated difference of approximately N132.01.
In Kano, the estimated pump price is N1,040.31 per litre, but the actual pump price is N904 and the estimated differential price is N136.31.
In Calabar, the estimated pump price is 1,007.35 Naira. The actual pump price is N885 per liter and the estimated differential price is N122.35.
In Sokoto, the estimated pump price is N1,045.72 per litre, but the actual pump price is N904, with an estimated difference of N141.72.
In Maiduguri, the estimated pump price is 1,059.39 Naira, but the actual pump price is 924 Naira, with an estimated difference of 135.39 Naira.
In Ibadan, the estimated pump price is N999.27 Naira per liter, but the actual pump price is N999.27 per litre, with an estimated difference price of N134.27.
The pump price in Enugu is 1,022.63 Naira, the actual pump price is 885 Naira per liter and the estimated difference price is 137.63 Naira.
While each city’s exchange rate is constant, this newspaper observed price differences in domestic pump prices for each city based on their distance to Lagos, the country’s economic hub where the Dangote refinery is located.
Sources told Premium Times on Monday that pump prices could even be higher than estimated, depending on oil prices and prevailing foreign exchange rates.
The NNPC claimed in September that it purchased petrol from the Dangote refinery at N898.78 per liter and sold it to market traders at N765.99 per liter, incurring a subsidy of almost N133 per liter. Ta.
NNPC LIMITED.
NNPC recovered about 103 million liters of petrol from the Dangote refinery between September 15 and 30. During the study period, the refinery loaded gasoline into 2,207 of the 3,621 trucks sent.
Records seen by PREMIUM TIMES show that of the 400 million liters of gasoline planned to be extracted from refineries at a rate of 25 million liters per day, vehicles transported only 102,973,025 liters, a performance of 26 percent. It is converted to .
background
On September 15, NNPC began loading gasoline from the Dangote refinery.
On September 26, the House of Representatives called on the Federal Government to require NNPC Ltd and Dangote Refinery to allow independent distributors to pump petrol directly from the refinery.
The House also directed the management of the Dangote Refinery to build, acquire or partner with the establishment of tank farms and storage facilities across the geopolitical zones of the country to facilitate the people’s access to petroleum products. I asked.
The call followed a motion of urgent public importance filed by Mr. Oboku Oforji (PDP, Bayelsa) on Thursday.
Mr Oforji moved the motion, explaining that the exclusion of independent marketers threatens competition in the sector.
He noted that competition is essential to reduce costs, adding that some marketers may import products to survive.
“NNPCL and big marketers being exclusive off-takers means monopoly, which is tantamount to greed. It’s the same,” the lawmaker said.
NNPC has now stepped back as the sole off-taker to allow other distributors to buy gasoline directly from the Dangote refinery at prevailing market prices, people familiar with the matter told PREMIUM TIMES. This is expected to promote competition and stabilize the supply chain.
NNPC, Danggot Keep Mama
Although NNPC has not formally confirmed its decision to quit its role as sole off-taker in the Dangote deal, officials from the national oil company on Monday briefed a group of top editors and media owners on the plan at a meeting in Abuja. Recognized progress. .
Dangote Group Chief Branding and Communications Officer, Anthony Chiedina, did not respond to PREMIUM TIMES’ requests for comment on Tuesday morning.
Anthony Chiezina
Attempts to contact the NNPC Chief Corporate Communications Officer, Mr. Olufemi Soneye, were also unsuccessful. As of Tuesday morning, he had not answered or returned calls. He also did not respond to text messages seeking clarification.
Anthony Chiezina
It was still unclear as of Tuesday morning whether this new development would affect the Nigerian government’s efforts to sell crude oil in local currency. Earlier this month, the committee in charge of the initiative announced that crude oil sales in naira had begun.
Zac Adedeji, Chairman of the Federal Inland Revenue Service (FIRS) and also Chairman of the Technical Sub-Committee on the President’s Initiative on the Naira on Crude Oil Sales, was not available for comment on Tuesday.
However, a FIRS official familiar with the committee’s activities said the development would not affect the President’s initiative over the naira on crude oil sales.
“It (crude oil sales in Naira) has already started. Any statement to the contrary that something has started and that it will be discontinued, modified or modified whether NNPC withdraws or not. If there is no, it has no effect on it,” the source said.
Support PREMIUM TIMES’ honest and trustworthy journalism
At Premium Times, we strongly believe in quality journalism. Recognizing that not everyone can afford expensive news subscriptions, we are committed to delivering carefully researched and fact-checked news that is freely accessible to everyone.
Whether you turn to Premium Times for daily updates, in-depth investigations of pressing national issues, or interesting stories, we value our readership.
It’s important to recognize that producing news is expensive, and we pride ourselves on never putting our stories behind the wall of exorbitant pay.
To sustain our commitment to free and accessible news, would you consider supporting us with a small monthly donation?
contribute
Text Ad: Call Willy – +2348098788999
