Marketers have not yet accessed petrol lifted on Sunday by the Nigerian National Petroleum Company (NNPC) from the Dangote Petroleum Refinery.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated on Tuesday that unresolved pricing issues are a key reason why their members have not lifted Dangote petrol from NNPC.
Abubakar Maigandi, IPMAN’s national president, pointed out that despite the refinery’s capacity to produce petrol locally, marketers are unable to access the product due to a lack of agreement on pricing, causing uncertainty in the fuel supply chain.
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“We have not received petrol from Dangote Refinery as we are waiting for NNPC on pricing,” he said.
Mohammed Lawal, a petroleum dealer associated with a major downstream firm, mentioned that markets are still awaiting approval from NNPC for Dangote petrol three days after lifting the product from the refinery’s 650,000 barrels per day (bpd) capacity.
“We are still selling old stocks of petrol. There is still so much uncertainty about pricing or when we will lift Dangote petrol,” Lawal
On Monday, September 16, NNPC released the pricing details for petrol, or premium motor spirit (PMS), from the Dangote Petroleum Refinery. Prices range from N950 to N1,019 per litre, depending on the location, sparking reactions within the oil industry and private sector.
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The refinery’s gantry price per ton was stated as N736, equivalent to $0.55 per litre. Using the official exchange rate of N1,637.59 to the dollar, NNPC indicated that the cost per litre of petrol is N898.78.
For each litre of petrol, NNPC said apart from the landing cost from refineries, there are statutory and regulatory charges that must be paid by suppliers. Those charges include: NMDPRA fee, N8.99; inspection fee, N0.97; distribution cost (Lagos) N15.00; and profit margin, N26.48. They must be added to the product’s landing cost to achieve the price range of N950 to N1, 019 per litre.
Credit: BusinessDayng
