Hopes for a reduction in petrol prices following the commencement of supply from Dangote Refinery were dashed yesterday, as NNPC Limited announced a new pricing structure that increases pump prices by approximately 11%, bringing the cost of petrol to N950 per litre.
The latest hike follows a previous increase of over 45% in fuel prices, spurred by expectations of supply from Dangote Refinery. However, ongoing disputes between NNPC and the refinery regarding the cost of petrol led NNPC to clarify that Dangote-produced fuel would not be sold at a lower price.
According to a document titled “Estimated Pump Price Based on Dangote Refinery September 2024 PMS Supply,” the base cost of petrol from the refinery is set at N898 per litre. When combined with additional charges—including regulatory fees, distribution, and logistics—the final price at NNPC stations in Lagos now stands at N950.22 per litre, up from the previous N855 per litre.
NNPC also announced adjustments across other regions, with Abuja’s pump price rising to N992.22 per litre, and prices in Kaduna, Kano, and Sokoto also increasing to N992.22. Consumers in Borno will face the highest cost, at N1,019 per litre, while prices in Port Harcourt and Imo have been adjusted to N980.22.
NNPC emphasized that it purchases petrol from Dangote Refinery at N898 per litre and invited anyone with contradictory pricing information to present it publicly.
“The NNPC Ltd wishes to state that, in accordance with the Petroleum Industry Act (PIA), petrol prices are not set by the government but negotiated between parties,” NNPC said in a statement. It also confirmed that it is currently paying Dangote Refinery in U.S. dollars for the September 2024 supply, with Naira-based transactions set to begin in October.
Despite the price hike, NNPC has reportedly completed the lifting of 16.8 million litres of petrol allocated to it, which is expected to help ease fuel shortages across the country.
Depot Owners Yet to Receive Dangote Refinery Petrol
While NNPC has begun distributing petrol from Dangote Refinery, depot owners and independent marketers have yet to receive the product. A depot owner revealed that they are still receiving imported petrol from NNPC at N766 per litre and are awaiting further information on the price of Dangote’s product.
Similarly, independent marketers confirmed they are still lifting imported petrol at N875 per litre and remain uncertain about the pricing of Dangote’s supply.
Price Could Exceed N1,200 Per Litre for Consumers
Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), warned that consumers should brace for higher prices at non-NNPC outlets. He estimated that petrol prices could reach between N1,200 and N1,300 per litre in some northern regions, depending on how much NNPC sells to depot owners.
“Prices will be significantly higher than what you see at NNPC stations, especially since independent marketers don’t have direct access to NNPC products and have to buy through intermediaries,” Ukadike explained.
With fuel prices continuing to rise and no immediate relief in sight, Nigerians are likely to face further increases in the cost of living as transportation and other fuel-dependent sectors adjust to the new reality.
