NNPC Ltd: Naira crude sales to kick-off in October, as reactions trail price templates for PMS sales
By Matthew Denis
The Nigeria National Petroleum Company Ltd (NNPC Ltd) has announced that the Dangote refinery will begin selling petrol in Naira starting from October 1, 2024.
This information was shared in a statement by NNPC Ltd Spokesperson Olufemi Soneye, who also provided details on the new pump prices for petrol across various states.
NNPC Ltd explained that the current petrol distribution from the Dangote refinery has been priced in U.S. dollars due to earlier agreements and crude oil supply arrangements made before the switch to Naira-based transactions.
The statement noted, “NNPC Ltd confirms that it is paying Dangote Refinery in USD for September 2024 PMS offtake. Naira transactions will commence on October 1, 2024.”
Additionally, the federal government has established a technical committee to finalise the process for transitioning to Naira transactions for products sourced from the Dangote refinery to NNPCL.
Again, NNPC raises fuel price further, unveils new templates
This is as the Nigerian National Petroleum Company (NNPC) Limited has further increased the price of Premium Motor Spirit (PMS) also known as petrol.
In the new price regime, the product will be sold at N950.22 per litre across all its retail outlets in Lagos up from the current N898.
In a post on its X, formerly Twitter, platform Monday, the NNPC said the estimated pump price was based on prices set by the Dangote refinery for its petroleum products.
According to the price map shared by the NNPC, residents in the northern part of Nigeria will pay more for the product with those in Borno expected to pay the highest petrol pump price of N1, 019.22.
It wrote: “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 Government, but negotiated directly between parties on an arm’s length.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 percent to the general public.
“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.”
On September 15, the NNPC commenced petrol products lifting at the gantry of the Dangote refinery after a protracted period of price negotiations.
Here are some of the estimated pump prices of PMS across NNPC retail stations based on September 2024 pricing: Lagos State – N950.22; Oyo State – N960.22; Rivers State – N990.22; Imo State – N990.22; Sokoto State – N999.22; Kano State – N999.22; Kaduna State – N999.22; FCT – N992.22; Borno State – N1,019.22.
As IPMAN criticises NNPC Ltd for selling Dangote higher PMS than imported ones
More crisis in the oil sector as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that it doesn’t make sense for the Nigerian National Petroleum Company Limited (NNPCL) to sell petrol lifted from the Dangote Refinery higher than imported ones.
This was made known on Monday by IPMAN’s National Welfare Officer, John Kekeocha while fielding questions on Channels Television’s the Morning Brief breakfast programme.
“If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense. What is the celebration we are having all these while then?” he said.
Recall, the NNPC Ltd started loading the first batch of petrol from the Dangote Refinery on Sunday.
