JUST IN: NNPC Confirms Dollar Payments To Dangote Refinery, Releases Estimated Prices
The Nigerian National Petroleum Company Limited (NNPC Ltd) has confirmed that payments for Premium Motor Spirit (PMS) offtake from Dangote Refinery in September 2024 will be made in U.S. dollars.
The decision comes ahead of a planned shift to naira-based transactions starting from October 1st, 2024, in line with the evolving framework of the Petroleum Industry Act (PIA).
In a statement on Monday, by the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, clarified that PMS prices are no longer determined by the Nigerian government but are negotiated directly between the parties involved, in a fully commercialized process.
The statement read, “The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by Government, but negotiated directly between parties on an arm’s length.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.”
Soneye assured that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.
Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.
The estimated pump price for petrol based on Dangote Refinery’s September 2024 PMS pricing is outlined as follows:
In Sokoto State, the price is set at N999.22, while Katsina State faces challenges with supply (“Saws Shit”). Kebbi State is mentioned with pricing details but lacks clarity, as does Zamfara State. Kano State also reports issues (“Kano Shirt”).
In Borno State, the price is set at N1,019.22 per litre. In Sokoto, Kano, Kaduna, and the FCT, the price is set at N999.22, while it is N950.22 in Lagos and N960.22 in Oyo.
Soneye emphasized that PMS prices are not set by the government but negotiated directly between parties on an arm’s length basis, according to PIA Section 206 (1).
Additionally, NNPC is paying Dangote Refinery in USD for September 2024 PMS offtake, with Naira transactions commencing on October 1, 2024.
Finally, NNPC mentions that if the quoted pricing (Platts 10ppm FOB AR Barge $46 premium) is disputed, they would welcome any discounts from Dangote Refinery, which would be passed 100% to the public.
