Independent petroleum marketers in Nigeria have announced that the upcoming Dangote Petroleum Refinery is expected to offer Premium Motor Spirit (PMS), commonly known as petrol, at prices between N600 and N650 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that, similar to its potential impact on diesel prices, the new refinery could help lower petrol costs in the market.
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IPMAN National Vice President, Hammed Fashola, stated on Monday that the $20 billion refinery could reduce fuel prices if it receives adequate support, particularly in terms of crude oil supply.
Fashola noted that while the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of PMS, sells to marketers at N570 per litre, many IPMAN members end up purchasing from private depots at prices of 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.”
As Regards 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.”
Fashola also mentioned that IPMAN has been in discussions with refinery officials regarding a potential partnership and is currently awaiting further updates.
“The discussions are ongoing, and we expect to finalize them soon,” he said.
