Fuel may sell at N800 per litre as NNPC buys N766 per litre off depot

As the Nigerian National Petroleum Corporation Limited (NNPCL) starts lifting Premium Motor Spirit (PMS), otherwise known as petrol, from Dangote Refinery today, Sunday, September 15, 2024, indications have emerged that Nigerians would buy the product at anything between N790 and N865 per litre – depending on the part of country, reports News Express.

While Sunday PUNCH quotes sources as projecting N790 in Lagos and N820 in the far north, Sunday Vanguard quotes its own sources as putting it at N857 to N865 per litre.

Sunday PUNCH: It was gathered that the Dangote refinery would sell its petrol at N766 to the NNPC.

Multiple sources from the Federal Ministry of Petroleum Resources, NNPC, and major energy marketers confirmed that the deal to supply crude to the Dangote refinery in naira was a key factor that led to the PMS price.

“What we are going to see based on the deal between NNPC and Dangote is similar to the DSDP (Direct Sale of crude oil and Direct Purchase of petroleum products) transactions that used to exist between NNPC and foreign refineries in the past.

“And this has really impacted positively on the price of petrol that Dangote is selling to NNPC, because the cost is around N766/litre. But I can’t tell how much NNPC is going to sell to marketers now,” a major marketer, who spoke to Sunday PUNCH in confidence due to lack of authorization to comment on the matter, stated.

Another senior aide to President Bola Tinubu, who spoke on condition of anonymity, confirmed that the petrol would be sold at 766/litre.

Pump price may reduce

Reacting to the Dangote fuel price, a senior IPMAN official said if marketers could get the product at N766, they would need to add the cost of transportation, levies, and other margins.

He said, “Give and take, we can sell at N790 in Lagos. In the far north, it may be N820 per litre because of the distance.”

Gillis-Harry, however, said his group was not aware of the price of fuel from the Dangote refinery.

“Well, it will be acceptable because now we are paying NNPC N870 for a litre, so if we see it at N766, it is cheaper and we will prefer to buy that.

Dangote petrol may sell for N857 to N865 per litre — Sunday Vanguard

Hopes for cheaper Premium Motor Spirit (PM), otherwise known as petrol, rose, last night, as indications emerged that the product may sell for between N857 and N865 per litre after the Nigerian National Petroleum Corporation Limited (NNPCL) starts lifting the product from Dangote Refinery today.

It was learnt that the NNPCL, as the sole off-taker of petrol from the refinery, is projected to lift the product at N960/N980 per litre and sell to marketers at N840/N850 to enable Nigerians to get it at between N857 and N865 at the pump at filling stations.

However, whether uniform product prices would apply at filling stations nationwide was unclear.

As of yesterday, petrol sold at N855 per litre at NNPCL retail stations in Lagos and it was the cheapest anyone could buy the product while major marketers sold around N920.

At independent marketers’ outlets, the price was over N1,000.

Elsewhere across the country, PMS sold for more than N1,200 per litre.

Negotiations

Sources said the new arrangement from the NNPCL and Dangote Refinery negotiations, spanning more than one week, would allow Nigerians to get petrol at between N857 and N865 per litre and represents an average under-recovery of about N130 to NNPCL.

President Bola Tinubu, Sunday Vanguard was made to understand by a Presidency source, made it clear to the negotiating parties that “the price at which petrol would be sold to Nigerians should not be such that would place heavy financial burden on them while dealing with the new reality of the prevailing price.”