The Nigerian National Petroleum Company Limited (NNPCL) has officially begun purchasing fuel from the Dangote Refinery at N898 per litre, dispelling earlier reports that the price was set at N760 per litre.
The NNPCL transported about 300 trucks to the 650,000-barrel-per-day capacity refinery in Lagos over the weekend, with loading operations commencing on Sunday. As of the latest update, over 70 trucks had been loaded with premium motor spirit (PMS), commonly known as petrol.
Speaking to reporters, Olufemi Soneye, NNPCL’s Chief Spokesperson, confirmed the pricing and loading details. “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter,” Soneye said.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, had previously announced that NNPCL would act as the sole off-taker of refined petrol from Dangote Refinery. Represented by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), Edun made the announcement during a meeting of the Technical Sub-Committee on the sale of crude oil to local refineries in Naira.
The new policy allows diesel from the Dangote Refinery to be sold in Naira to any interested buyer, while PMS will be sold exclusively to NNPCL, which will then distribute it to various marketers. This initiative is designed to alleviate pressure on the Naira, reduce transaction costs, and ensure the steady availability of petroleum products in Nigeria.
The Federal Executive Council (FEC), led by President Bola Tinubu, had earlier approved the sale of crude oil to local refineries in Naira, alongside the corresponding purchase of petroleum products in the same currency. According to the Finance Minister, all agreements and modalities for implementing this policy have been completed.
From October 1, 2024, the NNPCL is expected to supply about 385,000 barrels of crude oil per day to the Dangote Refinery, with payments made in Naira. In return, the refinery will provide PMS and diesel of equivalent value to the domestic market. Regulatory costs such as those for the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) will also be settled in Naira.
To streamline operations, the government is setting up a one-stop shop in Lagos to coordinate services from regulatory and security agencies, ensuring the smooth implementation of the initiative.
