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Nigeria’s Dangote Refinery Unveils Estimated Fuel Prices

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced estimated prices of Premium Motor Spirit (PMS), also known as fuel, obtained from the Dangote Refinery in its retail stations nationwide. The prices are based on September 2024 pricing and range from N950.22 in Lagos to higher prices in other states, taking into account transport costs.

According to NNPC Ltd., the company purchased fuel from the Dangote Refinery at N898 per litre for PMS offtake. The estimated prices were revealed in a statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., on Monday.

The Dangote Refinery had initially denied the disclosure made by NNPC Ltd., describing it as "misleading and mischievous" aimed at undermining the refinery’s achievement in addressing Nigeria’s energy insufficiency. However, in a statement, the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, urged Nigerians to disregard the NNPC Ltd.’s statement and await a formal announcement on the pricing by the Technical Sub-committee on Naira-based crude sales to local refineries on October 1.

In response, the NNPC Ltd.’s spokesperson emphasized that PMS prices are not set by government, but are negotiated directly between parties on an arms-length basis. The company assured that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.

The estimated price document also revealed that the NNPC Ltd. paid the refinery N898.78 per litre for PMS, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee is N8.99 and inspection fee is N0.97. The document also showed that Distribution cost (Lagos) is N15, while ‘Margin’ is N26.48.

This development marks a significant milestone in Nigeria’s energy sector, as the Dangote Refinery commences the first loading of PMS at its facility in the Ibeju-Lekki area of Lagos State. The refinery’s operations are expected to boost Nigeria’s fuel supply and reduce reliance on imports.