The hope of many Nigerians for reduction in the price of petrol coming from Dangote Refinery has been dashed.
This happened on Sunday when the NNPCL announced that it bought petrol from the Dangote Refinery for over N898 per litre.
The Gantry price per ton at the refinery was quoted to be $736 which is equivalent of $0.55 per litre. At the official exchange rate of N1,637.59 to one dollar, the NNPCL said the cost of one litre of petrol stands at N898.78.
For each litre of petrol, NNPCL said apart from landing cost from refineries, there are statutory and regulatory charges suppliers must pay. Those charges include NMDPRA fee, N8.99; inspection fee, N0.97; distribution cost (Lagos) N15.00; and profit margin, N26.48. They must be added to the product’s landing cost to determine the pump price of petrol.
With all charges computed, the pump price of petrol in Lagos is estimated to be N950.22 per litre.
The state oil company said once freighting and other statutory costs are added, the product would cost more at the pumps – going for N950.22 per litre in Lagos, N980.22 in Rivers, and N992.22 in Abuja.
These prices are much higher than the current pump prices at NNPCL stations across Nigeria which sell between N855 and N897 per litre. Before the price adjustment in early September, NNPCL was selling the product between N580 and N620 per litre. The cargoes petrol sold at those prices were imported.
The NNPCL said as consignments from Dangote Refinery are discharged in fueling stations across the country, petrol would now sell for N999.22 per litre at its stations in Nigeria’s North-western geopolitical zone while in Borno and other North-eastern states, the product would cost an estimated N1,019 per litre.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria, IPMAN has raised concerns over the pricing of petrol from the Dangote Refinery.
According to IPMAN on Monday, the pricing strategy for locally refined petrol should reflect the advantages of domestic production, offering Nigerians a more affordable option.
The association emphasized that maintaining competitive pricing is crucial for the success of the Dangote Refinery and for fostering a sustainable fuel market in the country.
IPMAN National Welfare Officer, John Kekeocha, stated this on Channels Television’s The Morning Brief breakfast programme on Monday.
“If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?” he queried.
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