Dangote refinery: New petrol prices emerge after NNPC quits as sole buyer

Dangote refinery: New petrol prices emerge after NNPC quits as sole buyer

Following the decision of the Nigerian National Petroleum Company Limited to quit its sole off-taker role of petrol with Dangote Refinery, new fuel pump prices are expected to become effective at filling stations nationwide anytime from now as subsidy payment will no longer suffice.
A new report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates the price of petrol at retail outlets will be N991.21/litre instead of the current N897/litre.
The NMDPRA is the agency responsible for regulating midstream and downstream petroleum operations in Nigeria, including technical, operational, and commercial activities.

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Although it was learnt that the price is not static and won’t be dictated by government agencies, the NMDPRA data provides insights into possible pump prices.
This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
The petrol data pricing framework, based on 10 trading days weighted averages from 23 September to 4 October 2024, showed that the NNPC was paying an average estimated differential of N134.5 per litre in the eight cities.
In Abuja, petrol may sell as high as N1,029.01 at retail outlets.
The price of petrol in Lagos may rise to N991.21 per litre, N1,040.31 in Kano, and N1,007.35 in Calabar.
The product would sell for an average of N1,045.72 per litre in fuel stations in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan, and N1,022.63 in Enugu.