Marketers expect petrol to be sold for N600 per litre with Dangote Refinery

The Independent petroleum marketers in Nigeria have stated that the upcoming Dangote Petroleum Refinery will offer Premium Motor Spirit (PMS), commonly known as petrol, at prices ranging from N600 to N650 per litre.

The believes that the Dangote refinery, like it did with diesel, will help reduce the cost of petrol.

IPMAN’s National Vice President, Hammed Fashola, explained in an interview with reporters that the $20 billion refinery could lower fuel prices, provided it receives adequate support, particularly in securing crude oil supplies.

Fashola explained that the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of PMS, sells to marketers at N570 per litre. However, many IPMAN members purchase from private depot owners at N700 or more.

“We are marketers and always seek the best prices. While we currently buy from the NNPC, if Dangote offers a competitive price, we will take advantage of it. It all depends on the price.

“The official price from the NNPC is around N570 per litre, but third-party private depots sell to most of our members at N700 and above. We hope Dangote can offer between N600 and N650 per litre. N600 would be acceptable, but this depends on Dangote’s production costs. We need to be honest; there might be hidden elements in the NNPC pricing, such as subsidies or under-recovery.”

Regarding diesel prices, Fashola noted, “Dangote’s refinery initially reduced diesel prices from about N1,600 to N1,000. Currently, diesel is priced around N1,150 to N1,200 per litre.

“We hope for a similar impact on PMS, though the current crude crisis poses a significant challenge. Even if Dangote buys crude in naira, if it reflects international market prices, it may not make a difference. We must be realistic.”

The IPMAN leader said the association has had business discussions with some officials of the refinery on a possible partnership, saying the marketers are waiting for Dangote.

“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.

Recall that the President of the Dangote Group, Alhaji Aliko Dangote, had last month projected that the refinery would begin the production of petrol between August 10 and 12, 2024.

However, the 650,000 barrels per day capacity refinery could not roll out petrol on Monday for different reasons.

Findings showed that the ongoing crude supply crisis might be a setback to the refinery.