The pricing structure indicates that other states in Nigeria may see even higher prices at NNPC retail stations, as additional transportation costs will be factored in.
The detailed breakdown shows that NNPC paid N898.78 per litre to the Dangote Refinery. Additional costs such as the NMDPRA (downstream regulator) fee of N8.99, Inspection fee of N0.97, and a Distribution cost (Lagos) of N15 were added, along with NNPC’s margin of N26.48 per litre.
Despite hopes that the Dangote Refinery would help lower fuel prices, oil experts caution that prices will still be driven by market forces. Even though petrol is now being sourced locally, Nigerians should not expect a significant reduction in prices anytime soon.
The NNPC’s statement further clarified that for September, payments to Dangote Refinery were made in dollars, as naira transactions will only begin in October 2024. This move aligns with the Petroleum Industry Act (PIA), which allows for negotiations between parties rather than government-set prices.
As Nigeria enters a new chapter of fuel production and sales with Dangote’s mega-refinery, the public remains hopeful that local refining will eventually stabilize the market and bring some relief to fuel prices across the nation.
Moral lesson: The journey to self-reliance in fuel production may not yield immediate price cuts, but transparency and gradual progress are steps in the right direction for Nigeria’s energy sector.