Breaking: Dangote Refinery to supply fuel at N766 — NNPC

The Nigerian National Petroleum Corporation Limited (NNPCL) has officially begun lifting Premium Motor Spirit (PMS), commonly referred to as petrol, from the Dangote Refinery in Lekki, Lagos, starting today, Sunday, September 15, 2024.

PulseNets learned that no fewer than 300 trucks are currently stationed at the refinery, ready to transport the fuel to various locations.

This development has sparked widespread excitement among Nigerians, who are anticipating a significant drop in petrol prices at filling stations across the country.

Industry insiders, who spoke to PulseNets, confirmed that the Dangote Refinery will supply petrol to NNPCL at a rate of N766 per litre. This pricing arrangement has been attributed to a deal between NNPCL and Dangote, in which crude oil is supplied to the refinery in naira.

A major marketer, speaking anonymously, told PulseNets, “What we are going to see based on the deal between NNPC and Dangote is similar to the DSDP (Direct Sale of crude oil and Direct Purchase of petroleum products) transactions that used to exist between NNPC and foreign refineries in the past.

“And this has really impacted positively on the price of petrol that Dangote is selling to NNPC, because the cost is around N766/litre. But I can’t tell how much NNPC is going to sell to marketers now.”

Additionally, a senior aide to President Bola Tinubu confirmed to PulseNets that the N766 per litre price is accurate.

However, marketers indicated that the final retail price would also factor in transportation costs, levies, and margins. Chinedu Okoronkwo, a senior official from the Independent Petroleum Marketers Association of Nigeria (IPMAN), estimated that petrol could be sold at N790 per litre in Lagos and up to N820 per litre in northern regions.

Also Read: Dangote Refinery facing Financial Troubles, needs $3 Billion Working Capital

IPMAN’s Gillis-Harry also spoke to PulseNets, welcoming the price reduction. He remarked, “We are ready to support Dangote, but they need to engage with us, as we control over 6,000 retail outlets.”

Currently, Nigerians are paying N855 per litre at NNPCL retail stations in Lagos, while major marketers sell between N920 and N1,200 per litre.