See how much Nigerians may pay for petrol as NNPC exits agreement with Dangote refinery

• An estimated price list leak shows that Nigerians may pay more for petrol as the NNPC ends its role as the sole off-taker of Dangote petrol
• Reports say that a document from NMDPRA shows that petrol prices will rise from N985 to N987 per litre
• The document reported showed new indicative prices for eight Nigeria cities with petrol selling at an average of N987 per litre

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigerians will soon pay more for petrol as the Nigerian National Petroleum Company Limited (NNPC) quits its role as the sole off-taker for the Dangote Refinery.

PMS data pricing framework across eight states from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that petrol prices at retail outlets nationwide will rise to at least N991.21 per litre from N987 per litre.

Nigerians to pay more for petrol as NNPC exits role in Dangote Refinery Credit: Bloomberg/Contributor
Source: UGC

Estimated prices in some cities

A data review shows that in Abuja, petrol may sell for as high as N1,029 in all retail outlets, while petrol prices in Lagos will rise to N991.21 per litre, N,1040.31 in Kano, and N1,007.35 in Calabar.

PMS will sell at an average price of N1,045.72 per litre in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan, and N1,022 in Enugu.

Legit.ng earlier reported that the NNPC quit its role as the sole off-taker of Dangote petrol on Monday, October 7, 2024, ending the exclusive purchase agreement with the 650,000 refinery.

The development means NNPC will cease to be the sole distributor of petrol from Dangote, paving the way for marketers to negotiate and lift the product from the refinery.

NNPC to cease paying subsidy on Dangote petrol

Premium Times reports that the NMDPRA document provides insight into the further payment differentials paid by the state oil firm in major Nigerian states and what Nigerians may pay at the pumps without subsidy.

The agency regulates midstream and downstream operations in Nigeria, including technical, operational, and commercial activities.

A ten-day petrol data list pricing framework weighted averages from September 23 to October 4, 2024, shows that the NNPC paid about N134.5 per litre as a differential in eight cities.

Following the national oil company's decision to exit its exclusive purchase agreement with the $20 billion oil refinery, new pump prices are expected to become effective at fuel stations nationwide as subsidy payments cease.

The NMDPRA’s data provides insights into potential petrol prices.

According to reports, in all the cities mentioned in the NMDPRA document, the average FX rate used to calculate petrol was about N1,604.89 per litre.

Here's the revised version

The indicated pump price for Lagos is N991.21, while the actual NNPC price is N855. Thus, the company pays about N136.21 as a differential.

The indicative pump price in Abuja is about N1,029.01, while the actual pump price is N897. This shows that the NNPC pays N132.01 as a differential.

The petrol price in Kano is about N1,040.31 per litre, while the actual cost is N904, with a differential of N136.31. 

In Calabar, the new pump price is N1,007.35 per litre, while the actual pump price is N885, resulting in a differential of N122.35.

In Sokoto, the pump price is N1,045.72 per litre, and the actual pump price is N904, showing a differential of N141.72.

In Maiduguri, the pump price is N1,059.39 per litre, while the actual pump price is N924, a differential of N135.39.

In Ibadan, the pump price is N999.27 per litre, while the actual pump price is N865, with N134.27 as a differential price.

Enugu's price is N1,022.63 per litre, and the actual pump price is N885, with N137.63. as a differential price

FG, NNPC, Dangote Refinery agree on new petrol lifting

Legit.ng earlier reported that the NNPC and the Dangote Refinery plan to change the lifting and distribution of petrol from the facility.

The new arrangement allows the NNPC to continue paying subsidies on refinery petroleum products.

Findings show that petrol prices from the refinery hovers around N1,600 per dollar due mainly to the exchange rate volatility.

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Source: Legit.ng