The Nigerian National Petroleum Company Limited (NNPCL) has officially announced the retail petrol prices across the country following the supply of petrol from the Dangote Refinery. This comes after the NNPC began lifting petrol from the refinery in September 2024, marking a significant shift in Nigeria’s fuel distribution landscape.
In a statement issued by NNPCL spokesperson, Olufemi Soneye, the company confirmed that it purchased the petrol from Dangote Refinery at N898.78 per liter. This price forms the basis for the nationwide retail pricing announced for September 2024, with the cost of petrol varying across different states due to transportation and logistics.
Regional Petrol Prices Differences
NNPCL provided a breakdown of the new pump prices, highlighting that petrol in Lagos will cost N950.22 per liter, accounting for logistics and transportation. In the Federal Capital Territory (FCT), Abuja, and northern states like Sokoto and Kano, the price will rise to N999.22 per liter.
Meanwhile, in the southern states of Rivers, Bayelsa, Akwa Ibom, and Imo, consumers will pay an estimated price of N980 per liter. The highest price will be in Borno State, where the pump price is set at N1,019.22 per liter, reflecting the additional cost of transporting fuel to remote areas.
Payment in Dollars and Future Transactions
In a noteworthy development, the NNPC disclosed that payments for the September 2024 supply were made in United States dollars. This is expected to change starting October 2024, when transactions will be conducted in Naira. According to Soneye, “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.” This payment structure is significant, as it reflects the global nature of the oil trade and underscores Nigeria’s reliance on foreign exchange for fuel procurement.
NNPCL also emphasized its commitment to transparency, stating that any potential discounts from the Dangote Refinery would be passed directly to Nigerian consumers. “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,” the statement added.
Controversy Over Initial Pricing
While the NNPC’s announcement outlined the petrol pricing structure, it has faced criticism from Dangote Group. Anthony Chiejina, a spokesperson for the Dangote Group, contested the NNPC’s statement, particularly the quoted price of N898.78 per liter. This disagreement highlights the complexities of fuel pricing in Nigeria and raises questions about the accuracy of the figures provided by both parties.
The NNPC’s statement and the Dangote Group’s objection have drawn significant public attention, as Nigerians are closely monitoring the pricing developments in the wake of fuel subsidy removal and the shift to a market-driven pricing model.
How Does This Affect Nigerians
The announcement of new petrol prices comes at a critical time for Nigeria, as the country adjusts to the full implementation of the Petroleum Industry Act (PIA). Under the PIA, the government no longer sets fuel prices; instead, prices are determined by market forces and negotiated directly between suppliers and distributors.
The wide range of prices across the country—ranging from N950.22 in Lagos to N1,019.22 in Borno—reflects the logistics challenges of transporting fuel to different regions. With fuel prices now driven by global oil market dynamics, many Nigerians are likely to face higher costs at the pump, particularly in areas far from the coastal refineries.
As the country continues to grapple with inflation and economic challenges, the introduction of locally refined fuel from Dangote Refinery is seen as a potential game changer. By reducing Nigeria’s dependence on imported petrol, it is hoped that domestic refining will eventually lead to greater price stability and possibly lower fuel costs in the future.
