Abuja, Nigeria – Having lifted approximately 103 million litres of petrol from Dangote Refinery between September 15 and 30, the Nigerian National Petroleum Company Limited (NNPC) is now preparing to implement a new pricing regime for the product, sources close to the matter have informed The Bureau Newspaper.
During the period under review, the refinery was able to load 2,207 out of 3,621 trucks sent to it, transporting a total of 102,973,025 litres of petrol. This figure falls significantly short of the planned 400,000,000 litres that were earmarked for distribution at a rate of 25 million litres per day, representing just 26 percent performance, according to records seen by The Bureau Newspaper.
The NNPC, acting as the sole off-taker of petrol from the Dangote Refinery, began lifting petrol from the facility on September 15. On that same day, the company announced that it was purchasing petrol from the refinery at N898.78 per litre and selling it to marketers at N765.99 per litre, effectively absorbing a subsidy of nearly N133 per litre.
The company further indicated that as supplies from Dangote Refinery were distributed to fueling stations across the country, the pump price would eventually rise to reflect the depot sale price, statutory charges, transportation, and distribution costs faced by various regions.
Despite this announcement, pump prices at NNPC stations across Nigeria have hovered between N855 and N897, depending on location, for the past month. However, sources within the NNPC have now informed The Bureau Newspaper that with the company’s imported stock of petrol nearly depleted, and an increasing reliance on supplies from Dangote Refinery, the price of petrol at the pump will need to be adjusted upwards to reflect current realities.
While the specifics of the new pricing regime remain unclear, Femi Soneye, the Chief Communications Officer of NNPC, was unavailable for immediate comment, and calls seeking further clarification were not returned. However, the company’s pricing template, released on September 16, indicated that once all charges and costs were factored in, petrol would sell for N950.22 per litre at NNPC stations in Lagos, N980.22 in Rivers State, and N992.22 in Abuja.
The same template estimated that the price of petrol would rise to N999.22 per litre in Nigeria’s North-western states, and up to N1,019 per litre in Borno and other North-eastern regions. Meanwhile, in the South-east, the product was expected to sell for N980.22 per litre, while consumers in the South-west states (Oyo, Ogun, Ekiti, Osun, Ondo) would pay N960.22 per litre.
NNPC insiders, however, revealed that the September 16 estimates have become outdated due to fluctuations in foreign exchange rates and rising crude oil prices, partly attributed to escalating tensions in the Middle East.
“With crude now trading above $78 per barrel and the naira exchanging at N1,660 to a dollar, it is unlikely that petrol will sell for less than N1,350 per litre in Nigeria,” an NNPC official noted.
It should be recalled that on September 3, the NNPC raised petrol prices at its pumps from N617 per litre to between N855 and N897, depending on the location.
This upcoming pricing adjustment could further impact the already strained economy as consumers brace for higher fuel costs.