Nigerians to Pay N950 Per Liter for Dangote Petrol as NNPC Increases Pump Price Amid Controversy
In a shocking move, the Nigerian National Petroleum Corporation (NNPC) Limited has increased the pump price of petrol by 11% to N950 per liter, despite the commencement of supply from Dangote Refinery. This development has dashed hopes for a potential reduction in petrol prices, sparking widespread controversy and public outcry.
According to NNPC, the base cost of petrol from Dangote Refinery is N898 per liter. However, additional costs such as Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charges, Midstream and Gas Infrastructure Fund (MDGIF) charges, and distribution and logistics costs have pushed the effective pump price in Lagos to N950.22 per liter.
The price increase varies across the country, with Abuja now at N992.22 per liter, Kaduna, Kano, and Sokoto at N992.22 per liter, and Borno at N1,019 per liter. Port Harcourt and Imo will pay N980.22 per liter. This move is expected to exacerbate the economic hardship faced by Nigerians.
NNPC has completed lifting 16.8 million liters of petrol allocated to it, but depot owners and oil marketers have not started taking delivery of the product. Independent marketers expect prices to rise to N1,200 per liter in outlets operated by other marketers, citing the high cost of doing business.
The Group Chief Branding and Communications Officer of Dangote Refinery, Anthony Chiejina, maintained silence on the new pricing. However, he earlier stated that Nigerians should await a formal announcement on pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by President Bola Ahmed Tinubu, commencing on October 1, 2024.
The NNPC has also requested permanent office space for its staff at Dangote Refinery as part of their crude supply deal. This request has raised eyebrows, with many questioning the rationale behind it.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed disappointment over the development, stating that the price increase will worsen the economic situation in the country. IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, noted that the association was not against the policy of selling the product to NNPC but advocated for direct supply to independent marketers.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has also called for increased transparency in the downstream sector, emphasizing the need for all stakeholders to thrive and contribute to ensuring availability, reliability, and accessibility of petroleum products nationwide.
As the controversy surrounding the price increase continues to unfold, Nigerians are bracing themselves for the impending economic hardship. The government’s decision to increase petrol prices has sparked concerns about its impact on inflation, economic growth, and the overall well-being of citizens.
In a related development, NNPC revealed that it has supplied over 48 million barrels of crude to Dangote Refinery since December 2023. The corporation stated that 3,424,584 barrels, 3,477,214 barrels, and 3,290,723 barrels were supplied in December 2023, February 2024, and March 2024, respectively.
The NNPC’s move to increase petrol prices has raised questions about the government’s commitment to reducing the economic burden on citizens. As the situation continues to evolve, Nigerians are eagerly awaiting a resolution to the controversy surrounding the Dangote petrol pricing.
