The Nigerian National Petroleum Company Limited (NNPCL) has provided a breakdown of the N898 per litre price of Premium Motor Spirit (PMS), commonly known as petrol, sourced from the Dangote Refinery.
In a statement issued on Monday by its spokesperson, Olufemi Soneye, NNPCL clarified that while it pays Dangote in dollars, the price per litre equates to N898.79.
According to the statement, the base cost per litre of the fuel, Platts10ppm, was $0.52, translating to N842.59 at the official exchange rate of N1,637.59, with a premium of $0.03 (N56.17), bringing the total gantry price to $0.55.
NNPCL emphasized that the price is negotiated directly between parties and stated that if there is any disagreement on pricing, it would welcome any discount offered by Dangote Refinery.
“The NNPC Ltd wishes to clarify that, in accordance with the Petroleum Industry Act (PIA), PMS prices are not regulated by the government but are instead negotiated directly between parties at arm’s length.
“The NNPC Ltd confirms that it is making payments to Dangote Refinery in USD for the PMS offtake in September 2024. Naira transactions will commence from October 1, 2024.
“If the quoted price is disputed, NNPCL would appreciate any discount from Dangote Refinery, which will be passed on in full to the public,” the statement read.
Additionally, NNPCL has announced that fuel from the Dangote Refinery will be priced above N1,000 per litre in some northern regions.
Soneye stated that the price could reach N1,019/litre in states like Borno, Adamawa, Gombe, Yobe, and Taraba, and N999.22 in locations such as Abuja, Kaduna, Niger, Sokoto, Kano, Kebbi, and Zamfara.
In the southern states, including Oyo, Ogun, Osun, Kwara, Rivers, and Imo, the price will range between N960.22 and N980.22 per litre.
The lowest price, according to an infographic released by NNPC, is N950 per litre in Lagos and surrounding areas.
“NNPC Ltd has released the projected prices of Premium Motor Spirit (PMS) sourced from Dangote Refinery for its retail stations nationwide.
“In line with the Petroleum Industry Act, NNPC Ltd reiterates that PMS prices are not set by the government but are negotiated directly between parties at arm’s length,” Soneye added.
This clarification follows the Dangote Group’s recent disagreement with NNPC, wherein Dangote denied selling PMS at N898 per litre but withheld the exact selling price.
