Hopes for reduced petrol prices have emerged as the Nigerian National Petroleum Corporation Limited (NNPCL) is set to begin lifting Premium Motor Spirit (PMS) from the Dangote Refinery today.
Sources indicate that petrol may sell for between N857 and N865 per litre after the new arrangement is fully implemented.
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Reports suggest that NNPCL, as the sole off-taker of petrol from the refinery, is projected to lift the product at a cost of N960 to N980 per litre, selling it to marketers at around N840 to N850 per litre.
This price structure is expected to allow petrol to be sold at filling stations for N857 to N865 per litre.
Currently, petrol is being sold at N855 per litre at NNPCL retail stations in Lagos, making it the cheapest option available, while other major marketers are selling at approximately N920.
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Independent marketers have raised prices above N1,000, and in some parts of the country, prices exceed N1,200 per litre.
The new pricing arrangement, reached after over a week of negotiations between NNPCL and Dangote Refinery, is projected to reduce the financial strain on Nigerians while keeping petrol prices within a more affordable range.
Sources say that President Bola Tinubu intervened during negotiations, urging stakeholders to ensure that the price at the pump would not impose undue financial hardship on citizens.
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Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, expressed optimism about the deal, noting that it would ease pressure on foreign exchange demands, as 30% to 40% of Nigeria’s FX demands are used for the importation of petrol.
He also highlighted that the structuring of the NNPC-Dangote deal in Naira is a positive step toward stabilizing the local currency.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed that trucks and vessels were already being deployed to the Dangote Refinery to begin lifting PMS.
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“Our trucks and personnel are on-site, and we expect to commence loading by September 15th,” he said, adding that over 100 trucks were already at the refinery, with the number expected to rise to 300 by the weekend.
Meanwhile, Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), expressed hope that the pricing structure would soon be clarified, allowing marketers to meet the energy demands of Nigerians.
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The Federal Government has also structured the sale of crude oil to local refineries and the corresponding purchase of petroleum products in Naira.
This initiative is expected to reduce transaction costs, ease FX pressures, and improve the availability of petrol in the domestic market.
NNPC will begin supplying around 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery from October 1, 2024, which will be paid for in Naira.
The Dangote Refinery will, in turn, supply PMS and diesel to the local market, also to be paid for in Naira.
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The agreement is expected to alleviate the severe shortage of petrol in Nigeria, and it could bring much-needed relief to consumers by stabilizing or even lowering the cost of fuel.
