In a major development in Nigeria’s oil sector, 11Plc, Total Energies, AA Rano, and other key petroleum marketers have begun lifting Dangote petrol at N765.99 per liter through NNPC Trading Limited. This marks a significant milestone in the ongoing partnership between the Dangote Refinery and Nigerian National Petroleum Company (NNPC), ensuring steady petrol distribution nationwide.
Industry insiders confirmed that marketers who completed payments on NNPC’s portal have started lifting petrol under an existing agreement between the refinery and NNPC, which remains the sole off-taker of Dangote petrol. Tunji Oyebanji, Managing Director of 11Plc, revealed that his company was one of the first to complete payments, and they’ve commenced lifting the product.
“We don’t have a direct agreement with Dangote Refinery, but we’re purchasing petrol at N765.99 per liter from NNPC to distribute across our retail outlets,” Oyebanji said.
NNPC Retail, alongside other major players such as Total Energies and AA Rano, have also joined in lifting petrol from the Dangote Refinery, signaling an increased flow of supply to local petrol stations.
NNPC’s Executive Vice-President, Downstream, Adedapo Segun, highlighted that marketers cannot buy petrol directly from the Dangote Refinery as the product is still sold at a subsidized rate. “NNPC is currently the only entity purchasing from Dangote because other marketers would not buy at the refinery’s market price,” Segun said.
He further emphasized that once market conditions allow, other marketers will begin direct purchases from the refinery. Segun explained that the market value of petrol remains higher than the N765-N766 price range NNPC offers.
Read also: NNPC, Dangote Refinery near final deal on Naira-Based crude sales, refined products buyback
Recent reports from Femi Soneye, NNPC’s spokesperson, claimed that the refinery sold petrol to NNPC at N898 per liter, citing market forces as a key determinant of domestic pump prices. However, Dangote Refinery’s spokesperson, Anthony Chiejina, refuted these claims, labeling them “misleading” and aimed at undermining the refinery’s role in addressing Nigeria’s energy challenges.
Despite the conflicting statements, NNPC insists it purchased the petrol at N898 per liter, with any potential discount being passed to the public. The state oil company also outlined the additional costs associated with bringing the petrol to market, including regulatory fees, inspection fees, distribution costs, and profit margins. These charges contribute to the final pump prices, which range from N950.22 per liter in Lagos to over N1,000 in other regions like Rivers and Maiduguri.
As NNPC continues to handle the distribution of Dangote petrol, consumers may experience fluctuating petrol prices depending on market dynamics. While the current price stands at N766 per liter, the actual pump prices could rise as global oil prices and local distribution costs shift.
