The Nigerian National Petroleum Company (NNPC) Ltd has released the estimated pump prices for Premium Motor Spirit (PMS), commonly known as petrol, across its retail stations nationwide for September 2024, Okay.ng reports.
This development follows after the NNPC Ltd commenced petrol lifting from the state-of-the-art 650,000 barrels-per-day refinery began on Sunday.
According to a statement by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, the pricing of PMS is now determined through negotiations between involved parties, in compliance with the Petroleum Industry Act (PIA). This marks a departure from the previous system where the government directly set petrol prices.
“The pricing is subject to negotiations conducted on an arm’s length basis between the parties involved,” Soneye stated.
He clarified that the current procurement of PMS from the Dangote Refinery for September 2024 is being settled in US dollars, with a transition to Naira payments scheduled to commence on October 1st, 2024.
Regional Pricing Insights
NNPC Ltd provided the estimated pump prices for PMS across various regions:
- Borno State: ₦1,019.22 per litre
- Sokoto, Kano, Kaduna, and FCT: ₦999.22 per litre
- Oyo State: ₦960.22 per litre
- Rivers State: ₦980.22 per litre
- Lagos State: ₦950.22 per litre
These prices reflect the cost structure based on Platts10ppm pricing from Friday, September 13th, 2024, and include components such as premium, fees from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and distribution costs.
Breakdown of Estimated Petrol (PMS) Pricing in Lagos:
For Lagos State, the estimated pump price of ₦950.22 per litre is broken down as follows:
| Cost Component | Cost in USD ($/MT) | Cost in NGN/Ltr (@₦1,637.59) |
|---|---|---|
| Platts10ppm (Sept 13, 2024) | $690 | ₦842.61 |
| Premium | $46 | ₦56.17 |
| Dangote Refinery PMS Gantry Pricing | $736 | ₦898.78 |
| NMDPRA Fee | – | ₦8.99 |
| Inspection Fee | – | ₦0.97 |
| Distribution Cost (Lagos) | – | ₦15.00 |
| Margin | – | ₦26.48 |
| Estimated Pump Price | – | ₦950.22 |
According to Soneye, this pricing model is based on Platts FOB AR Barge with an added premium of $46. NNPC Ltd emphasized that any potential discounts from the Dangote Refinery would be fully passed on to consumers.
Soneye assured Nigerians that NNPC Ltd is committed to ensuring transparency and fairness in fuel pricing.
“If there is any opportunity for a discount from the Dangote Refinery, such benefits will be passed on fully to the public,” he affirmed.
