Why Nigerians May Pay Over N1,019 Per Litre for Petrol as Dangote Refinery Begins Sales to NNPC

There are strong indications that Nigerians, especially in the northern region, could pay as much as N1,019 per litre for petrol as the Dangote Refinery begins the sale of Premium Motor Spirit (PMS) to the Nigerian National Petroleum Company (NNPC) Limited.
Reports suggest that Lagos residents may pay approximately N950.22 per litre at filling stations, while the price could rise to N1,019 per litre in states like Borno. Prices will vary across the country, reflecting logistics and ancillary costs. In Abuja, Sokoto, and Kano, petrol may sell for around N999.22 per litre, while residents in states such as Oyo and Rivers may pay about N960 per litre.
In a statement, NNPC spokesman Mr. Olufemi Soneye clarified that the government does not set PMS prices. “In line with the Petroleum Industry Act, PMS prices are determined through negotiations between parties,” he said.
The NNPC disclosed that the petrol it loaded from Dangote Refinery on Sunday was paid for in dollars. However, there has been controversy surrounding the pricing of petrol between Dangote Refinery and NNPC.
Earlier in September, Mr. Devakumar Edwin, Vice President of Dangote Industries Limited, announced that NNPC would be the sole buyer of the refinery’s petrol. However, NNPC countered this, stating that it would not be the sole buyer of Dangote’s fuel, contrary to Edwin’s claim.
“To set the record straight, NNPCL states that pricing for petroleum products from any refinery, including the Dangote Refinery, is influenced by global market forces,” said NNPC in a statement. “If current PMS prices are deemed high, the Dangote Refinery has an opportunity to sell its products at more competitive prices in the Nigerian market.”
On Sunday, September 15, Mr. Soneye revealed that NNPC purchased petrol from Dangote Refinery at N898 per litre for the initial loading. However, Dangote Group later issued a counter-statement on Sunday night, claiming it sold petrol to the NNPC at a cheaper price in dollars.
“We urge Nigerians to disregard this malicious statement and await a formal announcement from the Technical Sub-Committee on Naira-based crude sales to local refineries,” said Mr. Anthony Chiejina, Dangote Group’s spokesman. He added that the current stock of crude was procured in dollars but did not disclose the exact sale price.
In response, NNPC reiterated its stance on pricing, saying it would welcome any discount offered by Dangote Refinery. “If there is any discrepancy in pricing, we will gladly pass any discount on to the general public,” said Mr. Soneye.
The ongoing dispute has raised questions about transparency. Analysts have called on Dangote Refinery to disclose the price it charged NNPC for the petrol, especially following its Sunday statement, which countered NNPC’s figures but failed to provide a concrete price.
“NNPC disclosed the price it paid, but Dangote’s failure to reveal the exact amount is misleading,” said Dr. Adeola Adepoju, a UK-based engineer. “Telling Nigerians you sold cheaper in dollars is not enough. We need transparency, not ambiguity.”
An industry expert, who chose to remain anonymous, criticized both parties for poor communication. “Both Dangote and NNPC have handled this poorly. Dangote should have been more transparent about its pricing, while NNPC should clarify the dollar-equivalent price it paid.”
This situation underscores the need for clearer communication and transparency as Nigerians brace for higher petrol prices.