Oil marketers are awaiting the price of Premium Motor Spirit, popularly called petrol, produced by the Dangote Petroleum Refinery, following the announcement by the plant that only the Nigerian National Petroleum Company Limited will lift the product from the refinery at the moment.
PMS was officially launched on Tuesday by the $20bn plant located in Lekki Free Trade Zone in Lagos. The President of Dangote Group, Alhaji Aliko Dangote, announced that the 650,000-capacity oil refinery had commenced petrol production.
But dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria stated that they had yet to receive any notice on the price of petrol from the refinery.
“We have not received any notice about its PMS price because he categorically stated that the NNPC is the sole off-taker of the product, which to us came as a surprise,” National Publicity Secretary of IPMAN, Ukadike Chinedu, stated.
He added, “We had expected Dangote to open up the market for proper competition. This shows that all these while the NNPC has been waiting for Dangote to release products, as it had reduced PMS importation.
“However, we are still waiting for them to tell us the price, but this, of course, will have its effect on the pricing of the product considering the fact that the cost of the commodity has increased at NNPC retail stations.”
There are strong indications that the price of petrol may hit N1,200/litre following the decision of NNPC to raise the pump price at its stations on Tuesday.
This is even as the Dangote oil refinery announced its determination to supply 25 million litres of PMS daily in September.
Nigerians woke up on Tuesday to see a change in the pump prices, from around N600 to N855/litre, M918/litre and above, depending on the area of purchase at NNPC stations nationwide.
Sources told our correspondents that there was a directive to the retail outlets to increase petrol prices.
It was gathered that the recommended petrol prices vary by location, as some now sell at N900.
It was confirmed on Tuesday that NNPC outlets in Lagos increased their price to N855/litre.
The directive to raise petrol prices stated that the NNPC Retail Management approved an upward review.
This is coming barely two days after the company admitted it was having challenges to import fuel due to a $6bn debt.
However, the spokesperson of the NNPC, Olufemi Soneye, declined comments when our correspondent contacted him.
When our correspondent explained to him on WhatsApp that the statement had been making the rounds and reports from NNPC filling stations showed a rise in fuel prices, he replied, “Thank you for reaching out. I have no comment on the matter at this time. If there are any updates, I will make sure to inform you.”
Our correspondent gathered from depot operators that N250 has been added to the pump price.
It was observed that some major marketers have also jerked up their pump prices close to 900/litre.
The North West filling station in Onigbongbo, Lagos sold at N920 while Amuf in Ibafo, Ogun State sold for N1,000 per litre.
It was observed that the sudden price rise caused tension among motorists, who rushed to filling stations to engage in panic buying.
In Lagos, the few stations selling petrol had long queues, leading to traffic gridlocks in different locations.
It was also observed that many filling stations did not open for business while many marketers refused to lift fuel.
An official of a petroleum company at Apapa confirmed to our correspondent that no marketer was in their depot to load petrol as of 2pm on Tuesday.
This he described as unusual, saying many marketers may not be able to afford the new price.
Before now, NNPC used to sell petrol to major marketers below N600/litre, while the independent marketers bought from private depots for about N900.
While there are fears that the private depots may face tougher challenges with this new price, black marketers sold the rpouct at N2,000/litre on Tuesday in Lagos.
Some black marketers, who spoke with one of our correspondents at Victoria Island, Lagos, offered to sell five litres of petrol at N15,000. During price negotiation, they rejected N8,000, insisting that the least the five litres could go was N10,000.
25 million litres
The Nigerian Midstream and Downstream Petroleum Regulatory Authority disclosed on Tuesday that the Dangote oil refinery will supply a total of 25 million litres of petrol to the Nigerian market daily in September.
The NMDPRA said this will rise to 30 million litres from October.
In a short statement, the NMDPRA said it met with the NNPC to agree on local crude supply to the refinery.
“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA said on its X.
“Apples Bite” reports that the President of the Dangote Group, Alhaji Aliko Dangote, formally announced on Tuesday that the 650,000-capacity oil refinery had commenced petrol production.
Dangote, who spoke at the refinery, said the supply of petrol to Nigeria would change the country’s energy landscape.
While appreciating President Bola Tinubu for approving the sale of crude in naira to local refineries, Dangote said many did not believe that the $20bn refinery could start petrol production.
He said the capacity of the refinery would meet local demands and the demands of sub-Saharan Africa.
Dangote disclosed that the petrol would get to filling stations in 48 hours after all arrangements with the NNPC were concluded, saying the queues would soon be over.
“Our PMS can be in filling stations within the next 48 hours depending on NNPCL,” he said.
“We are ready, and I want to appreciate President Bola Tinubu for making to achieve this monumental feat.
“I pray that within the next few days, you won’t see any petroleum queues as soon as we finalise with NNPC. We are ready x we are waiting for them and I hope they will be ready like yesterday.”
Dangote told newsmen that he would not be able to disclose the price of the product, saying the NNPC was in a position to control the price.
“On the pricing, I can’t say anything because we don’t control the pricing; the pricing, at the moment, is controlled by NNPC, not Dangote. We will wait for them. But our own for now is to make sure that the product is available and round-tripping is stopped.
“People are just taking dollars out and not bringing the product. Most of the shenanigans will stop, that’s what I can guarantee you,” he stated
Dangote emphasised that NNPC was the company that would sell and distribute the product under the current naira crude sale arrangement.
“Once the NNPC is ready, we roll. We are even ready to load a ship this week,” he added.
He said Tinubu would deal ruthlessly with anyone who tried to stop the order that crude be supplied to local refineries.
Speaking further, the business mogul said the petrol and diesel from his refinery were clearer because they were of Euro 5 standard.
He said the fuel would have less emissions, saying it is good for the people’s health and engines.
“This is the sample of the petrol. You see it as a different colour, but that is the real deal. You are now going to have a good and genuine product. I am sure Nigerians have not seen this colour of diesel before. This is called Euro 5 diesel. It contains less than 10 parts per million of sulphur. This will help vehicles, engines, and generators last longer.
“The health of the people and the environment will not be compromised. This is the real deal,” he stated.
He also added that the Federal Executive Council was working on a new pricing arrangement for petrol produced from the Dangote Refinery.
“It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market,” he said.
Dangote explained why the first sample of petrol from his refinery appears clearer than the petrol currently in circulation.
“This is the sample of the petrol. You see it as a different colour, but that is the real deal. You are now going to have a good and genuine product,” he said
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
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