Independent petroleum marketers in Nigeria are anticipating that the soon-to-be-released petrol from the Dangote Petroleum Refinery will be priced between N600 and N650 per litre. This projection comes as the refinery prepares to introduce its Premium Motor Spirit (PMS) into the Nigerian market.
The marketers, operating under the Independent Petroleum Marketers Association of Nigeria (IPMAN), have expressed optimism that the new refinery will help reduce the current high cost of petrol, similar to the impact it had on diesel prices.
In a recent interview, Hammed Fashola, the National Vice President of IPMAN, highlighted that the Dangote refinery has the potential to significantly lower the cost of petrol if it receives adequate support, particularly concerning the supply of crude oil.
Fashola noted that the Nigerian National Petroleum Company Limited (NNPC), currently the sole importer of PMS, sells petrol to marketers at N570 per litre.
However, many IPMAN members are forced to purchase from private depot owners at prices as high as N700 per litre.
“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.
“The official price from the NNPC is around N570/litre, but the third parties, the private depots sell PMS to most of our members at N700 and above.
“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.
Speaking about diesel price, Fashola recalled, “We know Dangote refinery crashed the price of diesel. When the refinery started producing, diesel was around N1,600 and it went down to N1,000.
“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic.”
