While there has been no official statement from the NNPCL, its outlets nationwide have updated their prices in Lagos.
A check by our correspondent at various filling stations confirmed that the price has been modified.
At an NNPCL station on Acme Road in Ikeja, one correspondent noted that the station, which was selling petrol earlier in the day, suddenly ceased operations to cover the pump price. Conversely, another outlet along the Lagos-Abeokuta expressway has increased its price to N1,025 from the previous N998.
The full implementation of deregulation means that fuel prices will now be influenced by market dynamics.
As the national oil company adjusted its prices, other major marketers in Lagos also revised their rates. Mobil stations are currently selling at N1,070, Bovas stations at N1,090, while several others are pricing above the N1,025 set by NNPCL.
A representative from one of the major marketers indicated that the NNPCL likely raised its prices after realizing they were below market rates and needed to make an adjustment.
He noted that with complete deregulation, "Everyone will be monitoring each other's prices now. Remember, others had already made their moves."
In related news, Aliko Dangote, President of the Dangote Group, has estimated the daily local consumption of PMS to be around 30 million litres. He stated that his refinery is capable of meeting domestic demand and urged the NNPCL and other marketers to cease fuel imports.
Aliko Dangote shared this information with State House Correspondents on Tuesday following a meeting with President Bola Ahmed Tinubu at the Presidential Villa in Abuja. The meeting focused on the implementation of the Crude Oil and Refined Products Sales in Local Currency initiative.
Attendees included Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL); Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS); and Mr. Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN). Also present were Mallam Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Mr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
During the meeting, Dangote stated, “I estimate our daily consumption to be around 30-32 million litres, which we could begin producing as early as next week. This is not a significant concern, as we currently have 500 million litres stored in our tanks. Even without any production or imports, this supply would last the country more than 12 days.”
However, Dangote's estimate differed from that of NMDPRA's Farouk Ahmed, who indicated in Lagos on Monday that the daily consumption is approximately 45 to 50 million litres. Ahmed, speaking on the sidelines of the ongoing 18th Africa Downstream Energy Week themed ‘Alliances For Growth,’ confirmed that the national consumption level ranges between 45 million and 50 million litres per day.
He stated that the current fuel consumption in Nigeria, which is transported to the market, fluctuates between 45 million and 50 million liters, including the existing buffer.
"Nonetheless, we are witnessing increased activity at this time, particularly in the fourth quarter of the year leading up to Christmas, when industries typically see a surge in operations."
Further elaborating, Dangote, accompanied by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed that his refinery is capable of meeting the entire national demand at full capacity.
"We are fully prepared and I am confident in stating that we can supply the market with 30 million liters per day. We are in the process of ramping up our operations, so we are ready."
He urged the NNPCL and marketers to cease imports and instead collect their requirements from his facility. "I want to emphasize that maintaining half a billion liters in our tanks incurs significant costs. If I were to charge interest, it would amount to 32 percent daily. This is a loss for us. If they collect the fuel, we can eliminate queues at filling stations."
When questioned about the ongoing fuel queues at some filling stations, Dangote clarified, "It is important to recognize that we are producers. I own a refinery and am not involved in retail. If I were in retail, accountability would fall on me. What I am saying is that retailers need to come forward and take what they need."
The Minister of Finance added that the purpose of the meeting was to assess the implementation of crude sales in naira, noting that the implementation committee and its sub-committee have diligently collaborated with various stakeholders, including regulators and agencies such as NNDPRA, NUPRC, NIMASA, NNPC, NPA, the Navy, and others, to ensure the successful execution of this crucial initiative.