Financial Energy Review
……..by Ben Ndubuwa……
The Nigerian National Petroleum Company Limited (NNPCL) has announced new pump prices for Premium Motor Spirit (PMS), also known as petrol, following its updated price regime. This price adjustment reflects the evolving dynamics of the Nigerian fuel market, as the NNPCL remains the sole supplier of PMS in the country.
According to NNPCL’s recent statement, the revised pricing structure takes into account the provisions of the Petroleum Industry Act (PIA), which mandates that PMS prices are no longer set by the government. Instead, prices are determined through negotiations between relevant stakeholders, maintaining transparency and market-driven principles.
The NNPCL also disclosed that it has commenced paying Dangote Refinery in U.S. dollars for September 2024 PMS offtakes. Payments in Naira will resume by October 1, 2024. The NNPCL assured that any potential discounts from Dangote Refinery would be fully passed on to the public, helping to mitigate the impact of rising fuel costs.
As part of the price review, the NNPCL has released a new pricing template for its retail stations across Nigeria. Petrol will now be sold at:
- N980.22 per liter in Rivers and Imo States
- N999.22 per liter in Kaduna, Sokoto, and Kano States
- N992.22 per liter in the Federal Capital Territory (FCT)
- N960.22 per liter in Oyo State
- N950.22 per liter in Lagos State
- N1,019.22 per liter in Borno State
These price differences reflect the varying costs associated with fees from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), inspection fees, and distribution expenses.
Reacting to the development, the Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), Mr. Clement Isong, stated that he was unaware of the price adjustment but would provide more details after further clarification. However, other independent marketers have remained tight-lipped on the matter.
The situation remains fluid, with the market closely monitoring developments related to Dangote Refinery’s pricing and future adjustments to fuel costs in the country.
