After the Dangote Refinery started supplying gasoline, there had been some hope that gas prices might drop.
However, yesterday, NNPC Limited announced a new pricing template that increased pump prices by around 11% to N950 per litre.
Two weeks ago, the price of gasoline at the pump was raised by more than 45%, ostensibly in advance of the refinery’s output.
Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, stated in a statement that Dangote gasoline will not be sold for less money amid arguments between NNPC and Dangote Refinery over the product’s price.
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 the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charge of N4.495, the Midstream and Gas Infrastructure Fund (MDGIF) charge of N4.495, and the distribution and logistics cost of N42.45, all added up to raise the effective pump price in the Lagos area to N950.22 per litre from the current rate of N855 per litre.
The NNPC also adjusted the product’s price across the country for its stations, with Abuja now at N992.22 per liter, up from N897. The price for Kaduna, Kano, and Sokoto has also risen to N992.22, while consumers in Borno would pay the highest pump price of N1,019 a liter. Prices in Port Harcourt and Imo have risen to N980.22 per litre.
The NNPC persisted on loading the product from Dangote at N898 a litre and challenged anyone with conflicting figures to make them 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 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”.
Written by Jennifer Amarachi
