Petrol To Cost N991.21/Litre As NNPC Quits Off-Taker Role
Nigerians will soon face an increase in petrol prices due to the Nigerian National Petroleum Company Limited (NNPC Ltd) decision to terminate its exclusive purchase agreement with Dangote Refinery.
According to a Premium Motor Spirit (PMS) data pricing framework across eight Nigerian cities, obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the price of petrol at retail outlets nationwide is set to rise to at least N991.21/litre from the current N897/litre.
A data review indicates that in Abuja, the nation’s capital city, petrol may sell as high as N1,029.01 in retail outlets. The price of petrol in Lagos may rise to N991.21 per litre, N1,040.31 in Kano, and N1,007.35 in Calabar.
The product would sell for an average of N1,045.72 per litre in fuel stations in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan, and N1,022.63 in Enugu.
Earlier on Monday, it was reported that the Nigerian National Petroleum Company Limited (NNPC Ltd) is ending its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) document, obtained from sources at the agency, provides insight into the subsidy payment differentials paid by NNPC in major Nigerian cities and what Nigerians may pay at the pump in the absence of the subsidy arrangement.
The NMDPRA is the agency responsible for regulating midstream and downstream petroleum operations in Nigeria, including technical, operational, and commercial activities.
On 15 September, the NNPC began loading petrol from the Dangote Refinery.
On 26 September, the House of Representatives called on the federal government to mandate the NNPC Ltd and Dangote Refinery to allow independent marketers to lift petrol directly from the refinery.
The lower chamber also urged Dangote Refinery’s management to build, acquire, or partner to establish tank farms or depots across the country’s geopolitical zones to ease the public’s access to petroleum products.
This call followed a motion of urgent public importance moved on Thursday by Oboku Oforji (PDP, Bayelsa).
Moving the motion, Mr Oforji explained that excluding independent marketers threatened competition in the sector.
He noted that competition is essential for reducing costs, adding that some marketers may import products to survive.
