The Nigerian National Petroleum Company Limited (NNPCL) has revealed that it bought premium motor spirit (PMS), commonly known as petrol, from Dangote Refinery at N898 per litre, dashing hopes of many Nigerians for a lower price.
On Saturday, NNPCL dispatched about 300 trucks to the 650,000-barrel-capacity refinery in Lagos, with loading commencing the following day.
MUK TV reports that many Nigerians were filled with high hopes that the Dangote refinery, when fully operational, would bring down the price of fuel in the domestic market, eliminating all the import-related costs incurred through the importation of the product.
However, speaking to Daily Trust regarding the pricing, Olufemi Soneye, NNPCL’s Chief Spokesperson, stated, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.”
As of the report’s filing, over 70 trucks had been loaded with the fuel.
Earlier, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, had announced that NNPCL would be the exclusive buyer of refined petrol from Dangote Refinery.
This decision was confirmed during a Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, held on Friday.
Represented by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), the minister also mentioned that diesel from the refinery would be available for purchase in Naira by any interested buyer, while PMS would be sold exclusively to NNPCL.
Edun further explained that the Federal Executive Council (FEC), led by President Tinubu, had approved a policy allowing crude oil sales to local refineries and the purchase of petroleum products in Naira.
This move aims to reduce pressure on the Naira, lower transaction costs, and enhance the availability of petroleum products nationwide.
He noted, “I am glad to announce that all agreements have been completed, and the loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, 15th September. From 1st October, NNPC will begin supplying about 385,000 barrels per day (kbpd) of crude oil to the Dangote Refinery, to be paid for in Naira.”
In return, the refinery will supply an equivalent value of PMS and diesel to the domestic market.
The diesel will be sold to any interested buyer in Naira, while PMS will only be sold to NNPCL, which will distribute it to various marketers.
Edun added that all associated regulatory costs, including those from NPA and NIMASA, will also be settled in Naira, and a one-stop shop in Lagos is being set up to coordinate services from regulatory and security agencies to ensure smooth implementation.
