Nigerian petroleum marketers are anticipating that the upcoming Dangote Petroleum Refinery will offer Premium Motor Spirit (PMS), also known as petrol, at a price range between N600 and N650 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that the new refinery could potentially reduce petrol prices, similar to its impact on diesel prices. IPMAN’s National Vice President, Hammed Fashola, stated on Monday that the $20 billion refinery could bring down fuel costs if it receives adequate support, particularly regarding crude oil supply.
Fashola highlighted that the Nigerian National Petroleum Company Limited (NNPCL), currently the sole importer of PMS, sells petrol to marketers at around N570 per litre. However, many IPMAN members purchase from private depot owners at prices exceeding N700 per litre.
“As marketers, we are always looking for the best prices. While we currently buy from the NNPC, if Dangote offers a more competitive price, we will certainly take advantage of it. The final decision depends on the price offered. The official NNPC price is around N570 per litre, but third-party private depots are selling to most of our members at N700 and above. We hope Dangote can offer petrol between N600 and N650 per litre. N600 would be acceptable, but this is dependent on Dangote’s production costs. It’s important to be realistic; there might be hidden factors in NNPC’s pricing, such as subsidies or under-recovery.”
Discussing diesel prices, Fashola noted that Dangote’s refinery had initially reduced diesel prices from around N1,600 to N1,000 per litre. Currently, diesel is priced between N1,150 and N1,200 per litre. He expressed hope for a similar impact on PMS, although he acknowledged that the ongoing crude oil crisis poses a significant challenge. Even if Dangote buys crude in naira, if the price reflects international market rates, the impact on PMS pricing might be limited.
Fashola also mentioned that IPMAN is in discussions with officials from Dangote’s refinery regarding a potential partnership, and they are awaiting further developments.
“The discussions are ongoing, and we expect to finalize them soon,” he added.
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