Oil marketers have expressed concerns that the price of Premium Motor Spirit (PMS), commonly known as petrol, released by the Dangote Petroleum Refinery may justify continued fuel importation. The Nigerian National Petroleum Company Limited (NNPC) announced these prices on Monday, raising questions about transparency in PMS pricing.
Dealers expect the first vessels of imported petrol to arrive in Nigeria soon, with many urging greater openness around the Dangote refinery’s pricing structure.
The Organised Private Sector also criticized NNPC’s role as the sole off-taker of petrol from the $20 billion Lekki-based refinery. They argue that this monopoly could stifle competition, which is vital for a healthy market.
According to NNPC’s spokesperson, Olufemi Soneye, PMS from Dangote will be sold at over N1,000 per litre in northern Nigeria, with prices ranging from N950 in Lagos to N1,019 in Borno. Soneye further emphasized that PMS prices are set through negotiations in accordance with the Petroleum Industry Act, not by the government.
NNPC confirmed it is paying Dangote Refinery in US dollars for the September offtake, with naira transactions set to begin on October 1, 2024. The company assured that any discounts offered by Dangote would be passed on to consumers.
