Felicia Udeji Reporting
Hopes for a potential reduction in petrol prices, following the commencement of supply from Dangote Refinery, were dashed, yesterday, as NNPC Limited released a new pricing template that raised pump prices by about 11 per cent to N950 per litre.
The pump price of petrol was increased by over 45 per cent two weeks ago, apparently in anticipation of the refinery’s output.
But amid disagreements between NNPC and Dangote Refinery over price of the product, a statement by Chief Corporate Communications Officer, NNPC, Olufemi Soneye, clarified that Dangote petrol will not sell cheaper.
A document, titled “Estimated pump price based on Dangote Refinery September 2024 PMS supply”, showed that petrol from the refinery will have a base cost of N898 per litre.
Additional costs such as Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, charge of N4.495, Midstream and Gas Infrastructure Fund (MDGIF) charge of N4.495, distribution and logistics cost of N42.45 all added up to bring the effective pump price in Lagos area to N950.22 per litre from the current rate of N855 per litre.
NNPC also adjusted the price of the product across the country for its stations with Abuja now at N992.22 per litre from N897.
The price for Kaduna, Kano and Sokoto has also increased to N992.22 while consumers in Borno area will pay the highest pump price at N1,019 per litre. Prices in Port Harcourt and Imo have been increased to N980.22 per litre.
NNPC insisted that it loaded the product at N898 per litre from Dangote and challenged anyone with contrary figures to make it public.
The company stated: “The NNPC Ltd also wishes to state that in line with the provisions of the Petroleum Industry Act, PIA, PMS prices are not set by the government, but negotiated directly between parties.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in dollars for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
The Public Relations Officer, Independent Petroleum Marketers Association, IPMAN, Chief Chinedu Ukadike, said consumers should expect to pay as much as N1,200 per litre in outlets operated by other marketers.
“You can expect the price to be significantly higher than what you have at NNPC stations. Depending on how much depot owners are getting from NNPC, price may rise to between N1, 200 and N1,300 per litre in most parts of the north.
“We don’t know yet how much NNPC will sell and for independent marketers, things will even get more difficult because we don’t have direct access to products from NNPC. We have to buy from those who bought from NNPC,” he stated.
He had earlier lamented that the continued closure of NNPC Retail portal meant they would not be able to get access to petrol supplied by the Dangote Refinery through NNPC Limited.
IPMAN National Welfare Officer, John Kekeocha, stated: “If Dangote products become higher than the imported products, then it doesn’t make sense. What is essence of the celebration we have been having all this while.
Meanwhile many Nigerians have expressed their outrage and lamented about how President Tinubu’s administration has plunged them into untold hardship.
A commercial motorist who preferred to be anonymous said
“If Dangote’s refined products are more expensive than imported ones, then what’s the point of celebrating the refinery’s launch? The whole idea behind investing in local refining capacity was to reduce costs and make fuel more affordable for Nigerians”.
A private car owner who also spoke with our correspondent said “The refinery was supposed to be a game-changer, but if it has only brought more hardship, then what’s the celebration about? It’s like June, the Foolish Man’s Refinery, all over again – a lot of hype with little substance”