Indications emerged yesterday that the price of Premium Motor Spirit (PMS), also known as petrol, may drop to between N857 and N865 per litre, following the Nigerian National Petroleum Corporation Limited’s (NNPCL) plan to lift the product from Dangote Refinery today. The NNPCL, as the sole off-taker of petrol from the refinery, is projected to lift the product at N960/N980 per litre and sell to marketers at N840/N850, allowing Nigerians to purchase it at a lower price.
New Arrangement to Reduce Pressure on Naira
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, expressed optimism that the deal would reduce the pressure on foreign exchange (FX) demands and shore up the value of the Naira. Currently, between 30% and 40% of FX demands go into the importation of PMS. The structuring of the NNPCL, Dangote Refinery deal in Naira is expected to assist in reducing pressure on the local currency.
NNPCL Deploys 300 Trucks and Vessels to Refinery
Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, confirmed the readiness of the company to start lifting petrol today, stating that at least 100 trucks had already arrived at the refinery, with the number expected to increase to 300 by Saturday evening. The company has started deploying its trucks and vessels to the Dangote Refinery to lift PMS in preparation for the scheduled lifting date of September 15th.
Clarification on Pricing Mode Awaited
Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, said the association awaits clarity on the pricing mode, adding that once clarified, they would take necessary steps to meet the energy needs of Nigerians.
Landmark Move to Reduce Pressure on Naira
The Federal Government has successfully initiated the sale of crude to local refineries as well as the corresponding purchase of petroleum products in Naira. This landmark move is expected to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products.
Completion of Agreements and Modalities
The Minister of Finance and Coordinating Minister of the Economy announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.
Implementation Committee’s Intensive Work
The implementation committee, chaired by the Hon. Minister of Finance, and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.
Agreements and Supply Details
All agreements have been completed, and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, September 15th. From October 1st, 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.
Potential Price Drop and Availability
The agreement is expected to ease the severe shortage of petrol across the country and possibly bring the price down. With the new arrangement, Nigerians can expect to purchase petrol at a lower price, reducing the financial burden on citizens.
