Independent petroleum marketers in Nigeria are hopeful that the Dangote Petroleum Refinery will offer Premium Motor Spirit (PMS), commonly known as petrol, at a competitive rate of N600 to N650 per litre once it enters the market.
Under the umbrella of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the dealers expressed optimism that the Dangote refinery would reduce fuel prices, similar to its impact on diesel prices. IPMAN’s National Vice President, Hammed Fashola, stated in an interview on Monday that the $20 billion refinery could lower fuel costs if it receives adequate support, particularly in securing crude oil supplies.
Fashola pointed out that the Nigerian National Petroleum Company Limited (NNPC), the sole importer of PMS, currently sells fuel to marketers at N570 per litre. However, many IPMAN members purchase fuel from private depot owners at prices exceeding N700 per litre.
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“We are marketers, and we seek the best prices. If Dangote offers a competitive rate, we will gladly buy from them. The NNPC’s official price is around N570 per litre, but private depots sell to most of our members at over N700. We hope Dangote can offer between N600 and N650 per litre, which would still be acceptable,” Fashola noted.
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Reflecting on the impact of the Dangote refinery on diesel prices, Fashola mentioned that the refinery had previously reduced the cost of diesel from N1,600 to around N1,000 per litre. Currently, diesel is available at N1,150 to N1,200 per litre. He expressed hope for a similar trend with PMS, although he acknowledged that the ongoing crude oil supply crisis presents a significant challenge.
Fashola also revealed that IPMAN has engaged in business discussions with officials from the Dangote refinery about potential partnerships and is awaiting further developments.
Last month, Dangote Group President, Alhaji Aliko Dangote, projected that the refinery would commence petrol production between August 10 and 12, 2024. However, the 650,000 barrels per day refinery has yet to start petrol production due to ongoing crude supply challenges.