The Nigerian National Petroleum Company Limited (NNPC) has revealed that petrol from the Dangote Refinery will be sold at over N1,000 per litre in some parts of northern Nigeria.

In a statement released on Monday titled “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing”, NNPC spokesperson Olufemi Soneye disclosed that the price could soar to N1,019 per litre in Borno State and N999.22 in cities such as Abuja, Sokoto, and Kano.

According to Soneye, petrol prices will also vary across other regions, with Oyo and Rivers States set at N960 per litre, while Lagos and its surrounding areas will see the lowest price at N950 per litre.

“The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as petrol, from the Dangote Refinery in its retail stations nationwide. The prices, in line with the Petroleum Industry Act, are not determined by the government but are negotiated at arm’s length between parties,” Soneye stated.

The NNPC further clarified that the petrol lifted from the Dangote Refinery on Sunday was paid for in U.S. dollars, with naira payments expected to begin on October 1, 2024.

“If the quoted pricing is disputed, the NNPC Ltd will welcome any discount from the Dangote Refinery, which will be fully passed on to the public,” the statement added.

The announcement follows a disagreement between the Dangote Group and NNPC, with Dangote refuting NNPC’s earlier claim of selling petrol at N898 but failing to release its own price list.

Fuel Hike: ACCI warns of looming economic crises

The Abuja Chamber of Commerce and Industry (ACCI) has warned that the recent increase in fuel prices in the country can lead to severe economic crises.

The ACCI President, Emeka Obegolu, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

Obegolu said the price hike could have widespread repercussions, particularly on the business community, which was already grappling with inflationary pressures and high exchange rates.

According to him, the increase in fuel prices directly exacerbates the cost of operations for businesses across all sectors.

He said: “as fuel is a critical input in production and transportation, the price spike will lead to a corresponding rise in operational expenses.

“This escalation inevitably will result in higher prices for goods and services, which diminishes consumer purchasing power and reduces demand,” he said.

The ACCI boss emphasised the vulnerability of Small and Medium Enterprises (SMEs), which formed the backbone of the Nigerian economy.

Obegolu said that businesses already operating on narrow margins, were especially susceptible to the adverse effects of the rising costs and had limited capacity to absorb such shocks.

“We also anticipate potential disruptions in the supply chain due to increased transportation costs, which can further exacerbate the challenges businesses are currently facing.

“The fuel price increase was neither anticipated nor expected, especially as the nation is still reeling from the effects of a previous price hike.

“The recent unrest, culminating in a 10-day industrial strike tagged #EndBadGovernance saw business activities severely disrupted, with incidents of looting and property destruction adding to the woes of the business community,” he said.

Obegolu called on the Federal Government to take immediate action by reversing the fuel price hike and reducing living costs rather than imposing additional financial burdens on Nigerians.

He pointed out that businesses struggling to survive may be forced to shut down, while those already closed might find it impossible to recover without government intervention.

Obegolu cited a recent roundtable organised by the ACCI on “Implementing an Effective Price Control System in Nigeria”.

He said stakeholders at the meeting, including government officials, policymakers and industry experts, discussed the need for a robust regulatory framework to address the rising cost of goods and services.

He said the discussions reiterated the importance of price control in stabilising the economy and protecting consumers.

The ACCI boss cautioned that the recent fuel price hike could further aggravate Nigeria’s economic situation.

The chamber urged the government to prioritise the construction of modular refineries, which would reduce the nation’s reliance on imported refined petroleum products and foster a more sustainable economic environment.

Obegolu then restated ACCI’s commitment to continually advocate for policies that could create a conducive business environment and promote long-term economic growth in Nigeria.

The Federal Government, through the Debt Management Office, on Wednesday announced plans to issue N500 million dollars local bond to boost dollar liquidity.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday in Lagos at an investor meeting for the bond issuance.

Edun assured Nigerians that the economy was on the trajectory of growth, adding that dollar funding was critical for the exchange rate to stabilise.

According to him, in terms of investments and stabilising the economy, it is important to have adequate foreign exchange.

He said that though there had been improvements in the flow of foreign exchange into the economy, the dollar-denominated bond would further boost FX liquidity.

He said that this transaction was aimed at improving the external reserves and supporting the exchange rates, which were critical elements of stabilising the economy and preparing it for investment and growth.

(NAN)