NNPC insists it bought petrol from Dangote Refinery at N898 per litre

The Nigerian National Petroleum Company Limited (NNPC Ltd) has insisted that it bought petrol from Dangote refinery at N898 per litre.

Olufemi Soneye, the chief corporate communications officer of the company, disclosed this to PREMIUM TIMES on Monday morning.

The NNPC Ltd restated its position following a denial by Dangote after NNPC’s earlier statement.

On Sunday, Mr Soneye told this newspaper in an interview that the company bought petrol from Dangote refinery at N898 per litre. He said market forces now determine domestic pump prices.

However, in its reaction on Sunday night, the Dangote Refinery described the claim as “misleading and mischievous”, aimed at undermining the refinery’s achievement in addressing Nigeria’s energy insufficiency.

The company’s Group Chief Branding and Communications Officer, Anthony Chiejina, urged Nigerians to disregard the “malicious statement” and await a formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by President Bola Ahmed Tinubu, which will commence on 1 October.

It noted that its current stock of crude was procured in dollars and sold to NNPC in dollars, resulting in significant savings compared to current imports.

The statement by Mr Chiejina, however, failed to tell Nigerians the price at which the refinery sold its petrol to NNPC Ltd.

In his reaction to Dangote Refinery’s statement, Mr Soneye insisted that the company bought petrol from Dangote refinery at N898 per litre.

“If the price isn’t N898, then what is it? We would be happy to receive a discount. Throughout the day, various figures have been circulating—some claiming N1,300, Punch reported around N767, and another outlet mentioned N500. It’s our responsibility to clarify the facts. The truth is, the government is not setting fuel prices, nor is NNPC Ltd. It’s a deregulated market where prices are determined by market forces.

“Let them tell you their price. I stand by my earlier comment. Will you allow customers to carry your product without price agreement?” Mr Soneye told PREMIUM TIMES early on Monday.

In a separate statement announcing the estimated price of petrol obtained from the Dangote Refinery, the NNPC said it is paying the refinery in United States dollars for September 2024 petrol offtake, as Naira transactions will only commence on 1 October.

“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 the 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 1st October 2024.” Mr Soneye said.

The NNPC Ltd 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 per cent 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 statement said.

In July, the Federal Executive Council directed NNPC Ltd to engage the Dangote refinery and other local refineries to resolve the dispute over the sale of crude oil to them.

The FEC, presided over by President Bola Tinubu, also directed that such crude oil sales to the refineries be made in naira and that the refineries located in Nigeria should also sell their refined products to the Nigerian market in naira.

Earlier in September, Devakumar Edwin, vice president of Dangote Industries Limited, said the 650,000 barrels per day Dangote Refinery has begun the processing of petrol.

Mr Edwin explained that the NNPC Limited would be the sole buyer of its petrol.

On Friday, the Nigerian government announced that loading of petrol from Dangote Refinery will begin on Sunday.

The government said petrol from the Dangote refinery would only be sold to NNPC Ltd which would then sell to various marketers in the short term.

On Saturday the state-owned oil company said it deployed over 100 trucks as of Saturday afternoon. Confirming the development, Mr Soneye said by the end of Saturday, at least 300 trucks would be stationed at the refinery’s fuel loading gantry.

On Sunday, the NNPC released videos showing its trucks loading petrol from the refinery.

The refinery is expected to significantly boost Nigeria’s fuel supply stability.