Independent petroleum marketers in Nigeria are anticipating that the Dangote Petroleum Refinery will offer Premium Motor Spirit (PMS), commonly known as petrol, at a price of N600 to N650 per litre once it enters the market.
Under the Independent Petroleum Marketers Association of Nigeria (IPMAN), dealers are optimistic that the Dangote refinery will significantly reduce the price of petrol, similar to its impact on diesel prices.
In an interview on Monday, IPMAN National Vice President Hammed Fashola expressed confidence that the $20 billion refinery could lower fuel costs if it receives adequate support, particularly regarding crude oil supply.
Fashola explained that while the Nigerian National Petroleum Company Limited (NNPC), currently the sole importer of PMS, sells petrol to marketers at N570 per litre, many IPMAN members purchase it from private depot owners at prices above N700.
“We are marketers, and we seek the best deals. We’ve been buying from NNPC, but if Dangote offers a more favorable price, we’ll embrace it.
The official NNPC price is around N570 per litre, but private depots sell to many of our members at over N700 per litre. We hope Dangote can offer prices between N600 and N650 per litre. Even N600 would be acceptable, but this depends on Dangote’s production costs,” Fashola said.
He also noted, “When the Dangote refinery began producing diesel, it caused a price drop from around N1,600 to N1,000 per litre. Currently, diesel costs between N1,150 and N1,200 per litre.
We expect a similar trend with PMS, though the ongoing crude supply crisis presents a significant challenge.
Even if Dangote purchases crude in naira, if it’s at international market prices, it may not lead to much difference. We have to be realistic.”
Fashola revealed that IPMAN has engaged in business discussions with refinery officials about potential partnerships and is awaiting further developments.
“The discussion is ongoing, and we’re on course. We believe it will be concluded soon,” he added.
It’s worth recalling that Dangote Group President Alhaji Aliko Dangote had projected last month that the refinery would start petrol production between August 10 and 12, 2024.
However, the refinery, which has a capacity of 650,000 barrels per day, has not yet commenced petrol production, reportedly due to the ongoing crude supply crisis.
