NNPCL buys PMS in dollars from Dangote Refinery

The Nigerian National Petroleum Company (NNPC) Limited has said it paid in dollars for the purchase of premium motor spirit (PMS), from the Dangote Petroleum Refinery.

NNPCL spokesman Olufemi Soneye in a statement, however, revealed that the Dangote Refinery was paid “in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.”

On September 15, the commencement of petrol lifting at the Dangote refinery’s gantry officially started, after an extended period of price negotiations.

The development followed the deployment of a fleet of NNPC’s trucks to the refinery on September 14.

This revelation by the NNPCL, comes after it said, PMS was bought for an initial price of N766 per litre, from the Dangote Refinery.

However, the Dangote refinery countered the claim, describing it as “both misleading and mischievous”.

Dangote Refinery also urged Nigerians to disregard any malicious statement and await a formal announcement on pricing, by the Technical Sub-Committee.

The debate on pricing and availability of PMS can be traced back to July, after the Federal Executive Council’s (FEC) approval of President Bola Tinubu’s proposal to sell crude oil to Dangote Refinery and other upcoming refineries in naira.

READ ALSO: NNPC releases PMS prices from Dangote Refinery

The decision marks a significant shift, as the 450,000 barrels of crude earmarked for domestic consumption will now be sold to Nigerian refineries in local currency, with Dangote Refinery serving as the pilot for this initiative.

Meanwhile, the NNPCL on Monday published the estimated pump price of Premium Motor Spirit (PMS) for September 2024, revealing significant regional variations across the country, with pump prices in some states approaching the N1,000 per litre mark.

According to the data, Lagosians are projected to pay N950.22 per liter of PMS, while residents in northern states like Kaduna, Sokoto, and Kano may face prices as high as N999.22 per liter.

This surge in prices is largely due to international market rates, premium charges, and additional costs associated with transportation and distribution.