The Nigerian National Petroleum Company Limited has expressed its appreciation for any potential discount from Dangote Refinery, following the release of an updated pricing chart for Premium Motor Spirit for September 2024.
The chart indicates notable regional variations in fuel prices across the country.
NNPC has stated that any discounts received would be fully passed on to the public.
According to the updated pricing data, Borno State is set to experience the highest pump price for PMS at N1,019.22 per liter, while Lagos will benefit from the lowest rate at N950.22 per liter.
The variation in prices is largely due to transportation costs and regional distribution challenges.
Sokoto and Kaduna states are also facing high prices of N999.22 per litre, whereas residents of Oyo will pay N960.22 per litre.
The pricing breakdown is based on the Platts10ppm rate of $690 per metric ton as of September 13, 2024, which equates to $0.52 per litre or N842.61 per litre.
Dangote Refinery’s gantry price is set at $736 per metric ton, translating to N898.78 per litre.
Additional costs include the Nigerian Midstream and Downstream Petroleum Regulatory Authority fee of N8.99, an inspection fee of N0.97, distribution costs of N15.00 (for Lagos), and a margin of N26.48, which contribute to the final pump prices.
NNPC clarified that these prices are determined through negotiations under the Petroleum Industry Act (PIA) Section 206 (1), not set by the government.
The company also noted that payments to Dangote Refinery for September’s consignment are being made in U.S. dollars, highlighting the significance of any potential discounts to help reduce consumer prices.
The NNPC stated “PMS prices are not set by Government, but negotiated directly between parties on an arm’s length basis – PIA Section 206 (1).
“NNPC is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on local production.
“If the quoted pricing (Platts 10ppm FOB AR Barge + $46 premium) is disputed, NNPC will be grateful for any discount from Dangote Refinery, which will be passed on 100% to the public.”
Recall The Corporate Communications Manager of the NNPC, Olufemi Soneye had previously stated that claims of purchasing PMS at prices of N1,300 or N760 per litre from Dangote Refinery were inaccurate, confirming that the current loading price was N898 per liter.
However, Dangote Refinery has denied selling petrol at N898 per litre to NNPC.
Dangote Refinery stated that the products were sold to NNPC in U.S. dollars.
