NNPCL Estimates Petrol Price from Dangote Refinery

New Petrol Price Estimate from Dangote Refinery Released

“The NNPC Ltd. has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery)..."

NNPCL revises petrol pricing breakdown, omitting inspection and margin fees, increasing distribution fee, and introducing Midstream and Gas Infrastructure Fund fee, aligning with negotiated terms and regulatory requirements.

The Nigeria National Petroleum Company Limited (NNPCL) has released an updated estimate of the cost of petrol sourced from the Dangote Refinery, providing a revised breakdown of the costs involved.

In a statement issued on Monday, September 16, NNPCL shared a detailed chart outlining the refined petrol products purchased from the refinery on Sunday, September 15, offering transparency into the acquisition process.

According to the statement, NNPCL is currently settling payments with Dangote Refinery in US dollars for petrol supplies received in September 2024, with a planned switch to Naira payments scheduled to take effect from October 1, 2024.

The statement underscored NNPCL's commitment to transparency, guaranteeing that all discounts obtained from Dangote Refinery will be entirely transferred to consumers.

The statement reads, “The NNPC Ltd. has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.

“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognize the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021.

“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.

“We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100 percent to the general public.”

Although the national estimated price of petrol remains steady, the specifics of the NNPCL-Dangote Refinery transaction have undergone revisions.

A notable adjustment was made to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Further revisions were made to the petrol pricing breakdown, with notable changes to various fees.

Initially, the statement listed an inspection fee of N0.97 and a margin fee of N26.48, but these charges were omitted in the updated version. Conversely, the distribution fee skyrocketed from N15 to N42.45.

Additionally, a new Midstream and Gas Infrastructure Fund fee of N4.495 was introduced in the revised statement, previously unaccounted for.

These adjustments reflect NNPCL's continued efforts to harmonize its pricing with negotiated terms, ensuring compliance with regulatory requirements outlined in the Petroleum Industry Act.