See more as NNPC begs Dangote for any discount after unveiling new pump price

• NNPC has requested a discount from the Dangote Refinery as it begins distributing petrol from the facility
• The national oil company has promised to pass any discount received on to Nigerians to help reduce the current pump price
• A breakdown of the new petrol pricing shows that Lagos residents will pay N950 per litre, while residents in Borno State will pay over N1,000 per litre

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has requested a discount from Dangote Refinery on its petrol pricing.

In a statement titled "Estimated Pump Price Based on Dangote Refinery Sept. 2024 PMS Pricing," NNPC provided a breakdown of Dangote’s retail petrol pricing across states and promised to pass any discount received on to Nigerians, thereby reducing pump prices.

NNPC bought over 16 million litres of petrol from Dangote refinery Photo credit: nnpclimited
Source: Getty Images

NNPC also confirmed that it is paying Dangote Refinery in U.S. dollars for September’s PMS offtake, in line with the current pricing mechanism.

It stated that Naira-denominated petrol transactions will not commence until October 1, 2024, marking a transition period under the Petroleum Industry Act (PIA).

NNPC releases Dangote petrol pricing

NNPCL noted that the Dangote pricing mechanism for PMS is based on Platts 10 parts per million (ppm) FOB (Free on Board) AR Barge plus a $46 per metric ton premium.

NNPC stated:

"PMS prices are not set by Government, but negotiated directly between parties on an arm's length basis - PIA Section 206 (1)."NNPC is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on 1st October 2024."If the quoted pricing (Platts 10ppm FOB AR Barge + $46 premium) is disputed, NNPC will be grateful for any discount from Dangote Refinery, which will be passed on 100% to the public."

NNPC unveils six new locations for CNG

In related news, Legit.ng reported that NNPC Ltd has called on Nigerians to consider switching to Compressed Natural Gas (CNG).

The NNPC has ramped up efforts to expand the availability of CNG at its filling stations nationwide amid rising petrol prices.

The company said CNG stations are now available in Abuja at Gaduwa, Wuse, Gudu, Dei Dei, Ushafa, and Gwagwalada.

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Source: Legit.ng