By Samuel Timothy
The NNPC Ltd has announced that they purchased petrol from the Dangote refinery for N898 per litre . This is the latest update on the estimated price breakdown of petrol bought from the Dangote refinery.
On Monday, NNPC released a detailed breakdown of the refined petrol product purchased from Dangote Refinery on September 15. The national oil company revealed that it is currently paying for the petrol in US dollars, with plans to switch to Naira transactions starting October 1, 2024. The estimated prices of Premium Motor Spirit (PMS) or petrol, obtained from Dangote Refinery, will be applied at NNPC’s retail stations nationwide. This announcement provides clarity on the pricing and payment arrangements for the petrol offtake from Dangote Refinery for September 2024.
he estimated prices of petrol from Dangote Refinery are determined by agreements between NNPC Ltd. and the refinery, taking into account current global gasoline prices and the existing foreign exchange rate, in accordance with the Petroleum Industry Act (PIA) 2021. NNPC Ltd. has confirmed that it will pay Dangote Refinery in US dollars for the September 2024 petrol supply, with Naira payments scheduled to begin on October 1, 2024, as stipulated in the agreement. This arrangement ensures transparency and compliance with regulatory requirements.
NNPC Ltd. updated its breakdown of costs associated with purchasing petrol from Dangote Refinery, modifying several fees without changing the estimated national selling price. Key changes include:
- Reduction of Nigerian Midstream and Downstream Petroleum Regulatory Authority fee from ₦8.99 to ₦4.495
- (No changes to inspection, margin, and distribution fees were specified)
These revisions reflect adjustments in the financial terms of the transaction.
NNPC stands for Nigerian National Petroleum Corporation. It is the state-owned oil corporation of Nigeria, responsible for the exploration, production, refining, and distribution of petroleum products in the country.
NNPC was established in 1977 and is headquartered in Abuja, Nigeria. Its primary functions include:
- Exploration and production of crude oil and natural gas
- Refining and petrochemical production
- Distribution and marketing of petroleum products
- Regulation of the oil and gas industry in Nigeria
NNPC is also involved in various other activities, such as:
- Power generation and transmission
- Gas infrastructure development
- Oil and gas research and development
- International cooperation and partnerships
NNPC is a key player in Nigeria’s economy, accounting for a significant portion of the country’s revenue. However, it has faced various challenges, including corruption, inefficiency, and environmental concerns.
In 2021, NNPC was transformed into a limited liability company, NNPC Limited, under the Petroleum Industry Act (PIA) 2021, with the aim of making it more commercially viable and accountable.
A comparison of NNPC’s two statements shows notable fee changes:
- Inspection and margin fees were eliminated
- Distribution fee rose by ₦27.45 (from ₦15 to ₦42.45)
- A new Midstream and Gas Infrastructure Fund fee of ₦4.495 was added
These changes reflect updates in the financial terms of the transaction.
