The Nigerian National Petroleum Company Limited (NNPC) has crashed the price of Dangote petrol for marketers Investigations show that marketers began lifting the Dangote petrol from the NNPC Trading at N765 per litre
The company had said that marketers cannot purchase the product directly from the refinery due to costs.
Many oil marketers have begun purchasing products from the national oil firm, confirming NNPC's position that independent marketers cannot yet afford Dangote petrol due to its high cost.
Findings show that 11Plc, TotalEnergies, AA Rano, and other independent marketers have begun lifting Dangote petrol via the Nigerian National Petroleum Company (NNPC) Trading Limited to retail outlets nationwide at N765.99 per litre.
According to reports, some petroleum marketers who completed payments on the NNPC trading portal began lifting petrol earlier this week, according to the existing agreement between marketers and the refinery.
BusinessDay reports that the managing director of 11Plc, Tunji Oyebanji, confirmed on Thursday, September 19, 2024, that some marketers have started lifting via the NNPC, the sole off-taker of the product.
Oyebanji disclosed that they are the first marketers to complete payment on the NNPC portal as they have no direct arrangement with the Dangote Refinery.
The report said that NNPC Retail, 11Plc, TotalEnergies, and AA Rano are among the first marketers that have picked the refinery’s product.
NNPC remains the sole distributor of Dangote petrol Adedapo Segun, executive vice president downstream at NNPC, said that marketers cannot purchase directly from the refinery as the product is still being subsidised.
Recall that on September 15, 2024, the NNPC disclosed that it purchased petrol at the Dangote Refinery for N898 per litre, stating that market forces now determine domestic pump prices.
Reacting to the NNPC, the Dangote Group said that the NNPC assertion is misleading and mischievous and aimed at undermining the refinery’s achievement in addressing Nigeria’s energy needs.
Countering the refinery, NNPC insisted that it bought the product at N898 per litre from the facility and requested a discount from the plant, promising to pass the cost 100% to the consumer.
NNPC disclosed that in addition to landing costs from refineries, suppliers must pay mandatory and regulatory charges for each litre of petrol. The charges include the Nigerian Midstream and Downstream Petroleum Regulatory Authority fee of N8.99, inspection fee of N0.97, distribution cost in Lagos at N15, and profit margin cost of N26.48.
NNPC said that once freighting and other statutory costs are added, the product would cost more at the pumps: N950.22 per litre in Lagos, N980.22 in Rivers, and N992.22 in Abuja. The selling price in Maiduguri was N1,019.
Three major oil marketers have abandoned Dangote fuel as they expect vessels of imported petrol this week.
The dealers disclosed that vessels are bringing about 141 million litres of petrol into Nigeria following the Nigerian government's total deregulation of the downstream oil sector.
The marketers also disclosed the recent rise in prices of Dangote petrol issued by the Nigerian National Petroleum Company Limited (NNPC) on Monday, September 16, 20024, allowed for petrol imports.
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