The Nigerian National Petroleum Corporation (NNPC) has officially announced a new fuel pump price, pegged to the cost of refined petroleum products supplied by the Dangote Refinery.
This development came after Dangote Refinery, the largest in Africa denied fuel sales at N898 per litre following the first batch of refined fuel to the domestic market.
According to the NNPC, the new pump price is part of a strategic pricing formula aimed at reflecting the cost of production at the Dangote Refinery, alongside global oil market trends and logistics costs.
Although the exact price has yet to be confirmed, industry insiders anticipate a more stable price environment unlike the fluctuations experienced in recent months following the removal of fuel subsidies.
In a statement released by the NNPC, the corporation explained that the pricing mechanism is designed to ensure sustainability in the fuel supply chain while minimizing the impact of price changes on Nigerian consumers.
NNPC’s Press Release on New Estimated Pump Price
“NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery, Based on September 2024 Pricing
The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.
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 on an arms length.
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.
Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd
Abuja
16th September, 2024.”
