The Nigerian National Petroleum Company Limited (NNPC) is preparing to implement a new pricing regime for petrol, following the commencement of product lifting from Dangote Refinery, according to sources familiar with the situation.
Between September 15 and 30, the NNPC lifted approximately 103 million litres of petrol from the refinery, which represented just 26 percent of the 400 million litres planned for that period. A total of 2,207 out of 3,621 trucks loaded 102,973,025 litres of petrol, as the state oil company commenced its role as the sole off-taker from the refinery.
On September 15, the NNPC announced that it was purchasing petrol from the Dangote Refinery at N898.78 per litre but selling it to marketers at N765.99 per litre, shouldering a subsidy of about N133 per litre. At the time, the company indicated that the price of petrol at fueling stations would eventually rise to reflect additional costs, including depot sale price, statutory charges, transportation, and distribution challenges across various regions.
Currently, petrol prices at NNPC stations across the country range between N855 and N897 per litre, depending on location. However, with the NNPC’s stock of imported petrol dwindling and a growing reliance on supplies from the Dangote Refinery, insiders have revealed that pump prices are likely to increase to reflect these realities.
While the exact details of the impending price adjustment remain unclear, a pricing template released by NNPC on September 16 suggested that, once all charges are factored in, petrol prices could reach N950.22 per litre in Lagos, N980.22 in Rivers State and Nigeria’s South-east, and N992.22 in Abuja. In the South-west (including Oyo, Ogun, Ekiti, Osun, and Ondo states), petrol was expected to cost N960.22 per litre.
However, company officials have noted that these estimates may now be outdated due to fluctuations in the foreign exchange rate and rising crude oil prices, driven by escalating tensions in the Middle East. Crude oil is currently trading at over $78 per barrel, and the naira is exchanging at N1,660 to the dollar, which could push petrol prices above N1,350 per litre.
The NNPC had previously adjusted petrol prices on September 3, raising the pump price from N617 per litre to between N855 and N897, depending on location. As the company prepares to introduce the new pricing structure, Nigerians may soon face higher fuel costs in response to these market pressures.
