The Nigerian National Petroleum Company (NNPCL) Ltd has released a fresh breakdown of petrol prices based on recent negotiations with the Dangote Refinery for September 2024.
The new prices stem from several factors, including the international pricing of petrol, the prevailing exchange rate, and additional fees that impact the overall fuel cost.
The study of the deal with Dangote Refinery was changed, but the information about the expected price to be sold across the nation stayed the same.
Key changes in the price breakdown include reducing the Nigerian Midstream and Downstream Petroleum Regulatory Authority fee from ₦8.99 to ₦4.495, removing the inspection and margin fees, and increasing the distribution fee to ₦42.45.
Controversies over Dangote Refinery Petrol
According to the NNPCL, petrol purchases from Dangote Refinery for September 2024 will be denominated in US dollars. Dangote Refinery had late on 15 September released a press statement dismissing NNPCL’s statement that put the price the state-owned oil company is paying for Dangote Refinery petrol at N898 per litre as “malicious”.
Dangote Refinery clarified that the petrol it is supplying to the NNPLC in September is from its stock of imported crude that it purchased in dollars. According to the DRL statement, the NNPCL will start supplying petrol to its Lekki Lagos refinery in October 2024 based on the “naira for local crude oil” agreement announced in August.
Under the agreement, the NNPLC will supply crude oil to Dangote Refinery in naira, while Dangote will sell refined crude petroleum back to the NNPCL also in naira. This is expected to reduce pressure on the embattled naira as it avoids a situation where Dangote Refinery competes with other companies and individuals seeking to purchase dollars for transactions in the Nigerian foreign exchange market. But it seems all is not well between the partners—Dangote Refinery and the NNPCL—as both parties have resorted to issuing “counter” press releases.
Dangote Refinery Limited has also taken to the media to suggest that local oil marketers are out to frustrate its investment by boycotting its diesel, which it is offering at N1,000 per litre while they are importing diesel from Togo and selling at N1,700 per litre. DRL’s claims have baffled observers who wonder why Nigerian oil marketers who are in the business to make profits would purposely reduce their profits by refusing to buy cheaper diesel and go for imported diesel, which is about 40% more expensive.
