NNPC releases PMS prices from Dangote Refinery

The Nigerian National Petroleum Corporation (NNPC) 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.

The price estimates are based on the PMS pricing from Dangote Refinery, with Platts 10 parts per million (ppm) pricing set at $690 per metric ton as of Friday, September 13, 2024. Dangote Refinery’s pricing stands at $736 per metric ton, translating to approximately N898.78 per liter.

Additional fees, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99 and inspection charges of N0.97 per liter, further contribute to the final retail price.

The inclusion of a distribution cost of N15.00 per liter in Lagos and a margin of N26.48 adds up to the final price of N950.22 in Lagos.

Meanwhile, in Oyo State, the price is slightly higher at N960.22 per liter. In Rivers and Imo States, consumers are expected to pay N980.22 per liter. Abuja’s Federal Capital Territory is set to experience an estimated price of N992.22 per liter.

A key aspect highlighted in the release is that the NNPC is paying Dangote Refinery in U.S. dollars for the September 2024 offtake, though transactions in Nigerian naira are slated to begin from October 1, 2024.

The NNPC also noted that if the quoted Platts price, along with the $46 premium, is contested, the corporation would appreciate any discounts offered by Dangote Refinery, which would be passed on to the general public.

These developments, NNPC said reflect ongoing market adjustments under Nigeria’s Petroleum Industry Act (PIA), which removed government-set PMS prices and transitioned to market-driven, negotiated rates. This could present further challenges for Nigerians already grappling with inflationary pressures.

As fuel prices surge, analysts are keeping an eye on potential ripple effects across the economy, from transportation costs to general consumer goods, which are likely to be impacted by the hike in fuel price.