Business

Dangote Petrol Distribution Launches New Price Structure as NNPC Adjusts

Published by Tope Fakinlede on October 6th, 2024.

Dangote Petrol Distribution Launches New Price Structure as NNPC Adjusts

The Nigerian National Petroleum Company Limited (NNPC) is poised to implement a new pricing strategy for petrol following the recent distribution of approximately 103 million litres from Dangote Refinery. This delivery occurred between September 15 and 30, with the refinery successfully loading 2,207 out of 3,621 trucks during that timeframe.

Despite plans to lift 400 million litres at a rate of 25 million litres per day, the actual performance was only about 26%, with 102,973,025 litres transported. NNPC began sourcing petrol from Dangote Refinery on September 15 as the exclusive off-taker.

On that day, the company announced it would acquire petrol at N898.78 per litre, selling it to marketers at N765.99 per litre, effectively subsidizing nearly N133 per litre. As deliveries from the refinery are processed at fuel stations nationwide, NNPC indicated that pump prices would rise to align with the depot sale price and account for transportation and statutory fees.

In the past month, petrol prices at NNPC stations have fluctuated between N855 and N897, depending on the location. However, as NNPC’s imported petrol supplies dwindle and reliance on Dangote’s cargoes increases, insiders suggest that an upward price adjustment is imminent.

Details on the new pricing structure are yet to be confirmed, as Femi Soneye, NNPC’s chief communications officer, could not be reached for comment. A pricing template released on September 16 indicated that petrol prices could reach N950.22 per litre in Lagos, N980.22 in Rivers State, and N992.22 in Abuja. Other estimates suggested prices could hit N999.22 in the North-west and N1,019 in Borno and parts of the North-east.

In the South-east, the cost was projected at N980.22, while consumers in the South-west would pay approximately N960.22 per litre. However, insiders caution that these estimates are outdated, citing rising crude prices and currency fluctuations. With crude oil exceeding $78 per barrel and the naira trading at N1,660 to the dollar, some officials predict that petrol prices could soar to N1,350 per litre in Nigeria.

Previously, on September 3, NNPC raised petrol prices from N617 per litre to the current range of N855 to N897.