- Nigerian National Petroleum Corporation (NNPC) has updated petrol prices nationwide, effective September 16, 2024
- Prices were influenced by supply from Dangote Refinery and negotiated, not government-fixed, per the Petroleum Industry Act (PIA)
- The new prices were set at N950 per litre in Lagos, N992.22 in Abuja, and N1,019.22 in Borno
Nigerian National Petroleum Corporation (NNPCL) Limited has introduced a new national pump price following the petrol lifting from Dangote Refinery, with an added cost for consumers.
The corporation disclosed the estimated petrol prices from Dangote Refinery for its retail stations across the country early morning on Monday, September 16, revealing that, according to the Petroleum Industry Act (PIA), the prices were negotiated between parties rather than being set by the government.
NNPC clarifies petrol pricing, announces new rates
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by Government, but negotiated directly between parties at an arms length.
The corporation announced that the new petrol prices were N950 per litre in Lagos (up from N855), N992.22 per litre in Abuja (up from N897), and N1,019.22 per litre in Borno.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“The NNPC Ltd assures 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.
Dangote refinery’s production marks solution to long-standing issues, Edwin
“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations the country, based on September 2024 pricing,” NNPC stated.
Devakumar Edwin, Vice President of Dangote Industries Limited, noted during a media interview on Sunday, September 15 that while efforts to resolve PMS supply problems and queues began 52 years ago, a solution has now been achieved.
“The solution is local production and it is from a Nigerian owned company. It was constructed by a Nigerian company.
“So, it is a matter of great pride that a Nigerian-owned company, constructed by a Nigerian owned company, is able to refine PMS from the local crude and deliver not only to meet the entire requirements of Nigeria but we can also have surplus to export,” Edwin stated.
Local production to generate 54 million litres of petrol daily
“It is time and a moment of great pride for every Nigerian. Every day with 650,000 barrels of crude, we can generate more than 54 million litres of PMS. The refinery has a capacity to produce various other products too.
Edwin further said, “Also, 44% of the production can meet the entire requirements of the country, while 56% of the production has to be exported.
“It is not only going to be impacting in terms of import substitution alone, but also going to generate forex through export. At a go, we can load 86 trucks. We dedicate 40 gantries to PMS alone.”
From Shonekan’s 70 kobo to Tinubu’s N897: See the figures of Nigeria's major fuel hikes
Meanwhile, TheRadar earlier reported that the most recent increase under Tinubu’s regime had resulted in an uproar as Nigerians expressed their dissatisfaction.
TheRadar reviewed Nigeria’s major fuel price hikes from the era of Chief Ernest Shonekan in the 1990s to the current administration.