Indications have emerged that the price of Premium Motor Spirit (PMS), also known as petrol, may decrease to between N857 and N865 per liter following the Nigerian National Petroleum Corporation Limited’s (NNPCL) plans to lift the product from the Dangote Refinery starting today.
According to sources, NNPCL, as the sole off-taker of petrol from the refinery, is expected to lift the product at a price range of N960 to N980 per liter and sell it to marketers at a price range of N840 to N850 per liter.
This would enable Nigerians to purchase petrol at a price of between N857 and N865 per liter at filling stations.
However, it remains unclear whether uniform prices will apply nationwide.
Currently, petrol sells for N855 per liter at NNPCL retail stations in Lagos, while major marketers sell it for around N920 per liter.
Independent marketers sell the product for over N1,000 per liter, and in other parts of the country, the price exceeds N1,200 per liter.
 President Bola Tinubu has emphasized the need for a price that does not place a heavy financial burden on citizens.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has expressed optimism that the deal will reduce pressure on foreign exchange demands and strengthen the value of the Naira.
Currently, 30% to 40% of foreign exchange demands go into importing PMS.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed the company’s readiness to start lifting petrol today, stating that trucks and personnel are already on-site, ready to begin lifting.
At least 100 trucks have arrived at the refinery, with the number expected to increase to 300 by Saturday evening.
Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, expressed enthusiasm for lifting petrol, awaiting clarity on the pricing mode.
The Minister of Finance, Mr. Wale Edun, highlighted the benefits of structuring the NNPCL-Dangote Refinery deal in Naira, including reducing pressure on the local currency, eliminating unnecessary transaction costs, and improving petroleum product availability.
The Federal Government has successfully initiated the sale of crude to local refineries and corresponding purchase of petroleum products in Naira, as approved by the Federal Executive Council (FEC).
This initiative aims to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve petroleum product availability.
The implementation committee has worked intensely with NNPCL and Dangote Refinery to finalize the details of the modalities for the implementation of the FEC approval.
All agreements have been completed, and loading of the first batch of PMS from the Dangote Refinery will commence on September 15.
From October 1, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.
In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker, while PMS will only be sold to NNPC, which will then sell to various marketers.Analysts expect this agreement to ease the severe shortage of petrol across the country and potentially bring down the skyrocketing prices.
