The Nigerian National Petroleum Company Limited (NNPCL) has announced that the retail price of Premium Motor Spirit (PMS), commonly referred to as petrol, will be set at N950.22 per litre.
Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, stated, “NNPC Ltd would like to clarify that, in accordance with the Petroleum Industry Act (PIA), PMS prices are not determined by the Government but are instead negotiated directly between the involved parties on an arm’s length basis.”
In a statement shared with our correspondent, Soneye confirmed, “NNPC Ltd is currently paying Dangote Refinery in USD for the September 2024 PMS offtake, with Naira transactions scheduled to begin on October 1, 2024.”
He added, “Should there be any disputes regarding the quoted pricing, we would appreciate any discounts from Dangote Refinery, which will be fully passed on to the public.”
The statement included estimated pump prices for PMS sourced from Dangote Refinery across NNPC Retail Stations nationwide, based on September 2024 pricing.
The estimated gantry price from Dangote Refinery is set at N898.78 per litre, while the fee from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is N8.99 per litre. Other cost components, including inspection fees, distribution costs (in Lagos), and margins, are N0.97, N15.00, and N26.48 per litre, respectively.
Prices for the product will vary by region, costing N999.22 per litre in Sokoto, N960.22 per litre in Oyo State, N1,019.22 per litre in Borno State, and N980.22 per litre in Bayelsa State.
The statement reiterated: “PMS prices are not determined by the Government but are negotiated directly between the parties involved, as stated in PIA Section 206 (1). NNPC is currently paying Dangote Refinery in USD for the September 2024 PMS offtake, with Naira transactions set to commence on October 1, 2024.
READ ALSO: Grand Mufti of Ilorin lauds former NAHCON Chairman for exemplary leadership
Maiduguri Flooding : FG recaptures 7 fleeing inmates, unveils identities of 281 still at large
If there are any disputes regarding the quoted pricing (Platts 10ppm FOB AR Barge + $46 premium), NNPC would appreciate any discounts from Dangote Refinery, which will be fully passed on to the public.”
However, in a statement obtained by The ReporterNg yesterday, Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Refinery, advised Nigerians to “await a formal announcement regarding the pricing from the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu, which will take effect on October 1, 2024. It is important to note that our current stock of crude was purchased in dollars.”