Dangote Refinery Starts Direct Petrol Sales To Marketers

  The Dangote Petroleum Refinery has started supplying Premium Motor Spirit, popularly called petrol, to some oil marketers directly without recourse to the Nigerian National Petroleum Company Limited. It was gathered that while more oil marketers were intensifying efforts to buy the product directly from the plant, others were importing the commodity, as hundreds of millions of litres of imported PMS should hit Nigeria’s shores in two weeks’ time. Recall that The PUNCH exclusively reported on Monday that no fewer than four vessels carrying imported PMS arrived at seaports situated along the nation’s borders between Friday, October 18, and Sunday, October 20. The report cited a document obtained from the Nigerian Port Authority, which showed that about 123.4 million litres of PMS were berthed at two seaports to improve fuel supply nationwide. The development confirmed an earlier exclusive report by The PUNCH, which disclosed that oil dealers intend to import the commodity to supplement the supply from the $20bn Dangote refinery. Meanwhile, as major oil marketers import the commodity, their counterparts have started lifting PMS directly from the Lekki-based plant. A senior official at the refinery said marketers are now allowed to approach the company for direct business transactions on a willing-buyer, willing-seller basis. “Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable official, who spoke in confidence due to lack of authorisation to speak on the matter, stated. The source, who could not tell the price at which marketers were lifting the product, noted that the oil dealers would not come if the price was not favourable to them. “We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated. He maintained that things are improving, especially as the Federal Government commenced the supply of crude to the facility. Another official at the facility showed one of our correspondents the trucks of some marketers loading the product directly from the plant without going through NNPC. “Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated. The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery had focused on ensuring 53 per cent of PMS production from its crude oil supplies. “This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated. When asked if marketers had started the direct purchase of petrol from Dangote without recourse to NNPC, one of the notable major marketers in the country replied in the affirmative. “Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the source stated. But this is contrary to claims from some quarters that the refinery would not be able to sell petrol to marketers unless the deal between it and the NNPC is terminated. The PUNCH recalls the company had initially announced that the NNPC would be the sole off-taker of its petrol from September 15. A source at the refinery said this was as decided by the Federal Government. The source said he was taken aback when the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced on October 11 that marketers should now lift petrol directly from the refinery. “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who heads the committee stated in a statement. As the committee made the announcement, operators said the market had been fully deregulated and they would approach the refinery to apply for PMS lifting. The PUNCH recalls that the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, recently led other officials of the association to a meeting with the Vice President of the Dangote Industries, Devakumar Edwin, in Lagos. Though Fashola did not give much updates about the meeting with Edwin, he appreciated him for the roles he had been playing. “Edwin received us very well and promised to make things easier for IPMAN to do business with Dangote,” he said. Fashola added, “We had a fruitful discussion with the group. We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote. We hope very soon we will start lifting products from the facility.” However, IPMAN said it could not commence the immediate off-take of the product unless the refinery ends its contract with the NNPC. But officials at the refinery stated that the refinery was now selling PMS to some marketers. When the Dangote refinery began the sale of PMS on September 15, the NNPC said it bought the product at the rate of N898/litre; a claim the refinery described as mischievous. The refinery said the naira-for-crude committee would be the one to announce the price of its PMS. The committee has yet to do so as of October 22.  

Choose Between Petrol At N1,000/litre Or CNG For N200, Tinubu Tells Nigerians

  President Bola Ahmed Tinubu has said that Nigerian motorists now have a choice between paying N1,000 per litre for Premium Motor Spirit (PMS), commonly known as petrol, or buying Compressed Natural Gas (CNG) at N200 per Standard Cubic Meter. The president said this during a meeting with executives of the Nigerian Independent Petroleum Company (NIPCO), led by the director, Mr. Ramesh Kasangra, at the State House in Abuja. In a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu emphasised his administration’s push for cleaner, more affordable fuel options for Nigerians. “Nigeria’s motorists can buy petrol at N1,000 per litre or equivalent gas per Standard Cubic Meter at N200,” Tinubu stated. “We have also introduced incentives for commercial motorists to convert from petrol to gas, free of cost.” Continuing, he said; “This move is part of the Presidential Compressed Natural Gas Initiative (PCNGI), which is aimed at reducing the country’s reliance on petrol while promoting the use of CNG as an alternative fuel source. Tinubu praised NIPCO’s role in supporting the initiative, noting that the company’s investments align with his administration’s energy diversification strategy. “NIPCO’s efforts in promoting and supporting the ‘Switch to CNG’ campaign have been instrumental in boosting public awareness and providing affordable CNG conversion kits,” the president said. “This partnership helps us reduce fuel costs for consumers and our carbon footprint.” Tinubu also underscored the importance of public-private partnerships in driving Nigeria’s energy transition and reaffirmed the government’s commitment to creating a conducive environment for private-sector investments. “Our administration is focused on expanding Nigeria’s CNG infrastructure to enhance energy efficiency and stimulate economic growth,” Tinubu remarked, highlighting the long-term benefits of cleaner and more affordable energy solutions. The President further encouraged NIPCO to continue its innovative approach to CNG expansion while supporting the government’s broader goals in the energy sector. In his remarks, Mr Ramesh Kasangra expressed his gratitude for the government’s steadfast support of the CNG sector. He reaffirmed NIPCO’s commitment to working closely with the government to expand the CNG infrastructure, ensuring that CNG becomes a viable and accessible alternative for Nigerians nationwide. “We believe in Nigeria’s long-term potential,” Kasangra said, adding that NIPCO has already invested over N100 billion in laying pipelines for easy access to CNG and building CNG stations across the country.

Sell Petrol To Us At Dangote Price Or Return Our Money – IPMAN Tells NNPC

  The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, has urged the Nigerian National Petroleum Company Limited (NNPC) to sell Premium Motor Spirit (PMS), commonly known as petrol, to its marketers at the same rates offered by Dangote Petroleum Refinery. Shettima, while speaking Thursday on Channels Television, also demanded a refund of the funds owed to the oil marketers, which have been held by NNPC for the past three months. He stressed the financial strain that the prolonged delay in refunds had placed on petroleum marketers, urging the NNPC to take immediate action. “Our major challenge now is that already, we have an outstanding debt by the NNPC and the company collected product through Dangote refinery at a lower rate — not up to N900. “Presently, our money has been with them (NNPC) for almost three months. “But with the recent changes, we have requested that they sell to us at Dangote price or return our money. That’s the current situation and is the reason for the scarcity. We started negotiation yesterday,” he said. According to him, the national oil company has directed the IPMAN members “to buy the product from them at the rate of N1,010 in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri”. Expressing displeasure at the NNPC’s stance that marketers should buy petrol directly from the Dangote refinery, Shettima said: “We have a problem with that because already, we buy products from them. “So when they made this increment, they told us to add money and buy above what Dangote is selling products to them. “That is the reason we told them to return our monies to our banks so that we can go directly to Dangote refinery and buy, if that’s the case.” “The NNPC does not sell on credit and we buy products ahead of loading. Anytime they have products, they will call us to collect our products.”

Petrol To Cost N991.21/Litre As NNPC Quits Off-Taker Role

  Nigerians will soon face an increase in petrol prices due to the Nigerian National Petroleum Company Limited (NNPC Ltd) decision to terminate its exclusive purchase agreement with Dangote Refinery, PREMIUM TIMES has learnt. According to a Premium Motor Spirit (PMS) data pricing framework across eight Nigerian cities, obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the price of petrol at retail outlets nationwide is set to rise to at least N991.21/litre from the current N897/litre. A data review indicates that in Abuja, the nation’s capital city, petrol may sell as high as N1,029.01 in retail outlets. The price of petrol in Lagos may rise to N991.21 per litre, N1,040.31 in Kano, and N1,007.35 in Calabar. The product would sell for an average of N1,045.72 per litre in fuel stations in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan, and N1,022.63 in Enugu. Earlier on Monday, this newspaper exclusively reported that the Nigerian National Petroleum Company Limited (NNPC Ltd) is ending its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery. Dangote Refinery This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) document, obtained from sources at the agency, provides insight into the subsidy payment differentials paid by NNPC in major Nigerian cities and what Nigerians may pay at the pump in the absence of the subsidy arrangement. The NMDPRA is the agency responsible for regulating midstream and downstream petroleum operations in Nigeria, including technical, operational, and commercial activities. Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) The Premium Motor Spirit (PMS) data pricing framework, based on ten trading days weighted averages from 23 September to 4 October 2024, showed that the NNPC was paying an average estimated differential of N134.5 per litre in the eight cities. Following NNPC’s decision to quit its sole off-taker role with Dangote Refinery, indicative pump prices are expected to become effective at fuel stations nationwide, as subsidy payment will no longer be in place. Although the expected price hike is not static and won’t be dictated by government agencies, the NMDPRA data provides insights into possible pump prices. Details of post-subsidy indicative pump prices In all the cities the document referred to, the average NAFEM FX rate used to calculate the pump price was N1,604.89/USD. In Lagos State, the indicative pump price is N991.21, while the actual NNPC pump price is N855 per litre. This indicates that NNPC pays about N136.21 as its estimated differential price. In Abuja, the indicative pump price is N1,029.01 while the actual pump price is N897 per litre, meaning that the NNPC pays about N132.01 as an estimated differential. For Kano, the indicative pump price is N1,040.31 per litre, while the actual pump price is N904, indicating an estimated differential price of N136.31. In Calabar, the indicative pump price is N1,007.35; the actual pump price is N885 per litre, and the estimated differential price is N122.35. In Sokoto, the indicative pump price is N1,045.72 per litre, while the actual pump price is N904, indicating an estimated differential of N141.72. In Maiduguri, the indicative pump price is N1,059.39, while the actual pump price is N924, indicating an estimated differential of N135.39. In Ibadan, the indicative pump price is N999.27 per litre while the actual pump price is N865, and the estimated differential price is N134.27. Enugu’s indicative pump price is N1,022.63, the actual pump price is N885 per litre, and the estimated differential price is N137.63. While the FX rate remains constant in the cities, this newspaper observed price differences in the domestic pump prices in each city based on their distance to Lagos, the nation’s economic hub where the Dangote Refinery is located. Sources told PREMIUM TIMES on Monday that the pump price may even be higher than estimated, depending on crude oil prices and prevailing foreign exchange rates. The NNPC had claimed in September that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre. The NNPC lifted about 103 million litres of petrol from Dangote Refinery between September 15 and 30. During the period under review, the refinery loaded 2,207 of the 3,621 trucks sent to it. Records seen by PREMIUM TIMES show that the vehicles conveyed just 102,973,025 litres of the planned 400,000,000 litres of petrol earmarked to be lifted from the refinery at 25 million litres per day, translating to a 26 per cent performance. Background On 15 September, the NNPC began loading petrol from the Dangote Refinery. On 26 September, the House of Representatives called on the federal government to mandate the NNPC Ltd and Dangote Refinery to allow independent marketers to lift petrol directly from the refinery. The lower chamber also urged Dangote Refinery’s management to build, acquire, or partner to establish tank farms or depots across the country’s geopolitical zones to ease the public’s access to petroleum products. This call followed a motion of urgent public importance moved on Thursday by Oboku Oforji (PDP, Bayelsa). Moving the motion, Mr Oforji explained that excluding independent marketers threatened competition in the sector. He noted that competition is essential for reducing costs, adding that some marketers may import products to survive. “NNPCL and the major marketers being the exclusive off-takers spells monopoly, which is tantamount to greed. This is the same NNPC Ltd that has failed to manage our crude and refineries for decades,” the lawmaker said. Those familiar with the matter told PREMIUM TIMES that NNPC is now set to withdraw as the sole off-taker to allow other marketers to directly purchase petrol from Dangote Refinery at the prevailing … Read more

Three Marketers To Import 141 Million-Litres Of Petrol

  On Monday, the NNPC announced it would sell petrol sourced from the Dangote refinery for over N1,000 per liter in the northern regions. Its spokesperson, Olufemi Soneye, disclosed in a statement titled, ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’. Soneye explained that the price may go for as high as N1,019/litre in Borno State and N999.22 in Abuja, Sokoto, Kano, and others. In Oyo, Rivers, and other areas in the South, it will be N960/litre. The lowest price, according to an infographic released by the NNPC, is N950 in Lagos and its environs. Reacting to this on Tuesday, a major marketer confirmed that the deregulation of the downstream sector had fully set in, stressing that three dealers are expecting their products (PMS) this week. The marketer, who spoke to our correspondent in confidence due to lack of authorisation to speak on the matter, stated that each vessel would bring in about 35,000 metric tonnes of PMS. This means the three dealers are expecting about 105,000 metric tonnes of PMS this week, all things being equal. Going by the conversion rate of 1,341 litres to one metric tonne, it, therefore, implies that the marketers are bringing in about 141 million litres of petrol. “Most marketers often import three parcels for this kind of transaction and the lowest parcel is about 35,000 metric tonnes of PMS. Now, because of how the business is run, you see marketers bringing in between two and three parcels. “This week, we expect about three marketers to bring in products. However, some of these imports are not cast in stone, in the sense that the influence of many regulatory authorities is still there. So it is not that you will just go and bring in products and you then start to sell them. “The regulators, such as the NMDPRA, have to look at the quality, flash points and so many other things that should be taken into consideration before the product comes in. And when it lands, they will take samples and check them in their labs,” the marketer stated. On whether the three parcels of each of the marketers would land this week, the dealer replied, “All of them are not going to bring in the three parcels at the same time. They bring in a parcel first and later, say in one week time or so, another parcel comes in. All these imports have storage implications. “It is not something you do in a day. You can’t bring in one vessel today (Tuesday) and you bring in another one on Saturday. No, it is not done like that. This is not the importation of 20,000 or 30,000 litres of PMS.” When contacted, the spokesperson of the NMDPRA, George Ene-Ita, said marketers with approved import licenses were free to import PMS, but stressed that the products must be subjected to three major tests by the agency. “The products must be subjected to our testing protocols at the ports. The products must conform to stipulated standards before we give them the authorisation to offload to their terminals. “Also, before the smaller vessels bring it further inland to Nigeria our people will fly to the place to see the product and carryout some tests to ensure the right specification is upheld. “Tests are also done at the products’ origins. And when the products come in, before they are released to the market, further tests would be conducted to ensure that they meet the specifications,” he stated.

NNPC Amends Error in Petrol Price Increase Announcement

  The Nigeria National Petroleum Company Limited (NNPCL) has corrected a mistake made on the nationwide petrol price statement it released earlier on Monday. Early Monday morning, NNPCL gave a chart breakdown of the refined petrol product it bought from Dangote Refinery. While the data of the estimated price to be sold around the country remains the same, the analysis of the transaction it had with Dangote Refinery was altered. “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 estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021. “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. “We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public,” it read. While in the first press statement on Monday had a Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of ₦8.99, the second statement showed ₦4.495. The first statement had an inspection fee of ₦0.97, a margin fee of ₦26.48 and a distribution fee of ₦15. In the second statement on Monday, there were no inspection fee and marging fee, while the distribution fee was changed to ₦42.45. The second statement also had an additional Midstream and Gas Infrastructure Fund (MDGIF) of ₦4.495.

300 Trucks Arrives at Dangote Refinery Ahead of Petrol Loading

  The Nigerian National Petroleum Company Limited (NNPC) has confirmed that around 300 trucks have arrived at the Dangote Refinery in Ibeju-Lekki. This milestone sets the stage for the planned commencement of petrol loading, scheduled for Sunday, September 15, 2024. Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, disclosed this development via the social media platform X. “NNPC Ltd. trucks are arriving at the Dangote Refinery in preparation for the scheduled petrol loading,” Soneye stated. He emphasized that by the end of Saturday, at least 300 trucks would be stationed at the refinery’s fuel loading gantry, ready for action. In addition to the trucks already on-site, NNPC has mobilized an extensive fleet to facilitate the loading process. As of Saturday afternoon, the company reported that over 100 trucks had been deployed, with hundreds more en route to support the operation. This loading marks a significant milestone, as it follows the announcement last week by Aliko Dangote, Chairman of the Dangote Group, regarding the commencement of fuel production at the refinery. The NNPC, acting as the sole off-taker of petrol from the facility, projects to lift the product at prices ranging from N960 to N980 per litre, with expectations that it will be sold to marketers at approximately N840 to N850 per litre. This could potentially lead to a reduction in pump prices for consumers, with petrol estimated to retail between N857 and N865. Despite optimism over lower price points, the uniformity of these rates at filling stations nationwide remains uncertain. Presently, petrol prices at NNPC retail stations in Lagos are around N855 per litre, making it the most affordable option compared to major marketers who charge approximately N920. Independent sellers are even higher, with prices exceeding N1,000 per litre in some areas, while some regions of the country report prices above N1,200. As the NNPC prepares for tomorrow’s loading at the Dangote Refinery, all eyes will be on the impact this operation will have on petrol pricing and availability across Nigeria.

SERAP To Tinubu: Reverse “Illegal” Petrol Price Hike, Investigate NNPCL Corruption

  The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to instruct the Nigerian National Petroleum Company Limited (NNPCL) to immediately reverse what it terms an “illegal and unconstitutional” increase in petrol prices across its stations. In a statement issued on Sunday by SERAP Deputy Director Kolawole Oluwadare, SERAP urged Tinubu to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, along with relevant anti-corruption agencies, to investigate allegations of corruption and mismanagement within the NNPCL. This includes examining the use of $300 million in ‘bailout funds’ received from the Federal Government in August 2024 and the $6 billion debt owed to suppliers. SERAP emphasized that if evidence supports allegations of corruption and mismanagement within the NNPC, those responsible should be prosecuted, and any illicit gains should be recovered. “The increase in petrol price constitutes a fundamental breach of constitutional guarantees and the country’s international human rights obligations. “Nigerians have for far too long been denied justice and the opportunity to get to the bottom of why they continue to pay the price for corruption in the oil sector. “Rather than pursuing public policies to address the growing poverty and inequality in the country, and holding the NNPC to account for the alleged corruption and mismanagement in the oil sector, your government seems to be punishing the poor. “The increase in petrol price has rendered already impoverished citizens incapable of satisfying their minimum needs for survival. “The increase is not inevitable, as it stems from the persistent failure of successive governments to address allegations of corruption and mismanagement in the oil sector and the impunity of suspected perpetrators. “Corruption in the oil sector and the lack of transparency and accountability in the use of public funds to support the operations of the NNPC have resulted in persistent and unlawful hike in petrol prices. “Holding the NNPC to account for alleged corruption and mismanagement in the oil sector would serve legitimate public interests. “The increase is causing immense hardship to those less well-off. We are concerned that as the economic situation in Nigeria deteriorates, the increase in petrol price is pushing people further into poverty. “We would be grateful if the recommended measures are taken within 48 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest. “Increasing petrol prices at a time when millions of Nigerians continue to face worsening economic conditions is entirely inconsistent with your government constitutional and international obligations to ensure the minimum living conditions compatible with human dignity. “The arbitrary increase has placed a disproportionate burden on the marginalized and most vulnerable sectors of society, particularly those disadvantaged by poverty. “The increase is seriously jeopardizing their living conditions, well as individuals’ physical, emotional, and individual development, and intensifying and worsening socioeconomic conditions in the country. “The increase constitutes a serious human rights problem because of the intensity with which it undermines the enjoyment and exercise by Nigerians of their human rights and renders their civic participation illusory. “The fundamental right to life includes not only the right of every Nigerian not to be deprived of his/her life arbitrarily, but also the right that he/she will not be prevented from having access to the conditions that guarantee a dignified existence. “The growing poverty and inequality in the country has continued to adversely affect the right of Nigerians to participatory democracy, and impede their ability to participate in their own government. “Persistent increase in petrol prices keep people in poverty which in turn perpetuates discriminatory attitudes and practices against them. “Your government has a legal obligation to mobilize the maximum of the country’s available resources to ensure people’s socio-economic rights and to protect the most vulnerable and disadvantaged Nigerians. “Your government also has the legal obligations to probe and prosecute allegations of corruption and mismanagement in the NNPC, and to ensure access to justice and effective remedies for victims of corruption. “Investigating and prosecuting allegations of corruption and mismanagement in the oil sector would be entirely consistent with the Nigerian Constitution, and the country’s international anti-corruption obligations. “Section 13 of the Nigerian Constitution 1999 [as amended] imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices’ including in the NNPC. “Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity. “Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good. “According to our information, the Nigerian National Petroleum Company (NNPC) Limited recently increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets. “The price of the product increased to N855 per litre, from about N600, and in some instances above N900 per litre. The apparently unlawful increase in petrol price followed a scarcity caused by the reported refusal by suppliers to import petroleum products for the NNPCL over a $6 billion debt.