PAUL OGBUOKIRI reports that after all the drama, intrigues, back and forth movement and blame game between Dangote Refinery and Nigerian National Petroleum Company Limited (NNPC Ltd), the ship that was on a topsy-turvy voyage finally berthed. It unloaded with Nigeria’s locally produced PMS sold at a more expensive price than the one imported.

NNPC responsible for high cost of petrol – Economist
An Economist and Chief Executive Officer of Lacora Sone, Kelvin Ayebaefie Emmanuel, while arguing that the NNPC Ltd was responsible for the high cost of the Dangote Refinery fuel, disclosed that the 16.8 million litrer of petrol lifted from the Dangote refinery by the NNPC last Sunday was not paid for in cash because the state oil company lacked the necessary funds to pay.
Speaking on Morning Crossfire last Monday, he disclosed that NNPC owes international traders $6.8 billion. So, “they don’t have the cash to pay.”
Emmanuel disclosed that, “a multilateral development bank structured (a) letter of credit for them to be able to” lift petrol from the Dangote refinery.
His words: “NNPC was landing dirty fuels at 70 cents (about N1, 148) per litre and Dangote is selling PMS today at 55 cents (about N900) per litre. He is bending over backwards to save Nigeria at the nick of time.”
Emmanuel further said it was “highly nefarious” for an NNPC representative to issue a statement, attempting to attribute the price hike in petrol to Dangote.
According to Emmanuel, the Nigerian government is still responsible for setting petrol prices since the fuel market is currently regulated.
He stated that the government is to blame for its incapacity to guarantee that Nigerians receive petrol at a fair price.

Dangote will sell at market price – Rewane
The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, said it was suicidal for Dangote Refinery to sell petrol below its production cost.
Rewane stated this on Channels Television’s Business Morning segment of Sunrise Daily breakfast programme on Tuesday.
The economist said: “Dangote Refinery or any refinery for that matter, apart from government-owned refineries, is in business to produce at a profit.
“Two, they will produce at a point at a price point where their marginal cost equals their marginal revenue and they will not sell below cost; if not, if they do that consistently, they will go out of business.
“What Dangote Refinery is assuring the country is quality and quantity but that pricing is not necessarily in the hands of Dangote Refinery but in the hands of the market; the market determines the price including the global crude price, guaranteed margin and the cost of processing. It’s as simple as that. Nobody goes into business to sell below its cost price. If not, that is suicide,” Rewane said.

NNPCL’s subsidy payment on imported fuel not applied on Dangote products
The price of PMS by the Dangote Petroleum Refinery and released by the Nigerian NNPC Ltd on Monday would justify continued importation of the commodity into Nigeria, oil marketers have said.
Dealers also stated that vessels of imported petrol should start arriving in Nigeria soon as they called for transparency in the pricing of the PMS produced by the Dangote refinery.
This came as the Organised Private Sector faulted the role of NNPC as the sole off-taker of petrol from the $20 billion Lekki-based refinery. They called for competition in the space, adding that NNPC’s role as sole off-taker would not encourage this.
NNPC had announced that it would sell the petrol lifted from the Dangote refinery at a price above N900, which means that it is selling at a margin of about N50 and above across the country.
The spokesperson, Olufemi Soneye, stated this 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 info graphic released by the NNPC, is N950 in Lagos and its environs.
“The NNPC Ltd has released estimated prices of Premium Motor Spirit, also known as petrol (obtained from the Dangote refinery) in its retail stations across the country.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” he stated.
The company explained that the product it loaded on Sunday was paid for in dollars.
“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 1, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 per cent to the general public,” the statement added.
Soneye stated that the estimated pump prices of PMS were obtained from the Dangote Refinery and would be across NNPC retail stations in Nigeria based on September 2024 pricing.
Recall that the Dangote Group had disagreed with NNPC on Sunday on the N898/litre PMS cost announced by NNPC as the price at which Dangote sold the commodity.

IPMAN reacts
The Independent Petroleum Marketers Association of Nigeria(IPMAN) raised concerns over the pricing of petrol from the Dangote refinery, urging NNPC to ensure that the product was not sold at a higher price than imported fuel.
IPMAN argued that such a disparity would be counterproductive to the nation’s drive for energy self-sufficiency and could negatively impact consumers and marketers alike.
According to IPMAN, the pricing strategy for locally refined petrol should reflect the advantages of domestic production, offering Nigerians a more affordable option.
The association emphasised that maintaining competitive pricing was crucial for the success of the Dangote Refinery and for fostering a sustainable fuel market in the country.
IPMAN’s National Welfare Officer, John Kekeocha, who stated this, said: “If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense. What is the celebration we are having all these while then?” he queried.
The NNPC began loading the first batch of petrol from the Dangote Refinery last Sunday, saying it got petrol at N898 per litre from the private refinery.
Before lifting petrol from the Dangote Refinery, NNPC retail outlets in Lagos sold petrol for around N855 but said a litre of Dangote petrol would sell for N950/litre in Lagos and N1, 019 in Borno.

It is illegal for NNPCL to fix prices of Dangote petrol – Falana
Human rights lawyer, Femi Falana, SAN, has stated that the NNPCL has confirmed its resolve to continue to sabotage the national economy through the reckless importation of cheaper petrol from foreign countries at a cost that the nation cannot afford, by selling the petrol produced by Dangote Refinery at a higher price.
Falana said it was illegal for the state oil company, NNPCL to determine prices of Premium Motor Spirit also known as petrol after deregulation.
The fiery lawyer made this known in a statement made available to Sunday Telegraph, noting that the action of the NNPCL violates section 205 of the Petroleum Industry Act (PIA).
He explained that since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc.
He said: “On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act (PIA).
“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.
“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. The action of the NNPCL is a violent contravention of section 205 of the PIA, which stipulates that the prices of petroleum products shall be determined by market forces.
“Furthermore, since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc.
“In fact, by selling the petrol produced by Dangote Refinery at a higher price, the NNPCL has confirmed its resolve to continue to sabotage the national economy through the reckless importation of cheaper petrol from foreign countries at a cost that the nation cannot afford,” Falana said in the statement.

NNPCL has made itself a monopoly—NACCIMA
Also speaking, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dele Oye, said NACCIMA members were concerned about NNPC’s role as the sole off-taker for the Dangote refinery.
He said: “The arrangement whereby NNPC is the sole buyer from the Dangote refinery does indeed create a monopolistic situation, which appears to contradict the principles of a deregulated market and is in conflict with the government’s current position that they have deregulated the sector. This raises concerns about the potential distortion of pricing mechanisms and the limited opportunities for other stakeholders to participate in the market.
“The conflicting statements between Dangote Refinery and NNPC further underscore the need for clarity and transparency in the fuel pricing process. The public deserves a clear explanation of the rationale behind the pricing decisions to enhance trust and confidence in our energy sector. The recent price increase, while necessary, has had a significant impact on the already challenging inflationary situation, and has led to some businesses and even some state governments resorting to remote work arrangements.”
He stated that the NNPC needed to open the market by allowing multiple buyers from Dangote refinery.
He added: “This would not only enhance competition but also ensure that prices reflected true market realities rather than being solely dictated by regulatory control.
“Furthermore, it is imperative that the NNPCL provide a clear timeline for the completion and commencement of operations at the Port Harcourt Refinery. This would introduce much-needed competition among the local refineries, thereby strengthening our energy security.
“The current uncertainty and perceived lack of transparency, as well as the perceived lack of demonstrated support for the Dangote Refinery, may send negative signals to potential foreign and existing local investors. This could undermine President Bola Tinubu’s efforts to attract foreign direct investment and drive economic growth. It is essential that we address these issues promptly to build a more favourable investment climate that encourages sustainable development and prosperity for our nation.”

How to bring down price-LCCI
For the market to adjust itself and drive down price, the President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, said NNPCL should not prevent Dangote Refinery from selling PMS to other marketers.
Idahosa noted that independent marketers had called on the NNPCL to allow them to decide whether they could afford to buy at whatever price Dangote would sell and then sell accordingly.
He said: “If we can sell at N900 and make a profit, that’s our problem. If we cannot sell, and we are forced to sell above N898, and there are Nigerian buyers in various parts of the country, who are willing to buy because they are not ready to stay in long queues at NNPCL stations that are selling at N898, so be it,” he said
The LCCI president noted that NNPC’s increase in pump price to a minimum of N898 following its purchase of PMS from the Dangote refinery came at a time when Nigerians were enmeshed in hardship and hunger worsened by declining average income levels.
“It is difficult for the majority of Nigerians to afford it easily. That point is not in dispute. The only point is, how do we gradually begin to see a reduction in the pump price of petrol?

“We have travelled through this road before, as regards the high price of diesel and aviation fuel but because the market was deregulated, it gradually and steadily came down. So, how can we see that for petrol? I think that is everyone’s primary concern,” Idahosa added.