Independent petroleum marketers in Nigeria anticipate that the Dangote Petroleum Refinery will price its Premium Motor Spirit (PMS), commonly known as petrol, between N600 and N650 per litre once it hits the market.
Representatives from the Independent Petroleum Marketers Association of Nigeria (IPMAN) believe the Dangote refinery has the potential to significantly reduce petrol prices, similar to its impact on diesel prices.
IPMAN National Vice President, Hammed Fashola, shared in an interview on Monday that the $20 billion refinery could lower fuel costs if it receives the necessary support, particularly regarding crude oil supply.
Fashola noted that while the Nigerian National Petroleum Company Limited (NNPC) sells PMS to marketers at approximately N570 per litre, many IPMAN members purchase from private depots at rates exceeding N700 per litre.
“We are always looking for the best deals. Although we currently buy from NNPC, if Dangote offers a more competitive price, we will consider it. The expected price range of N600 to N650 per litre is reasonable, depending on Dangote’s production costs. We must be honest about the potential hidden costs, as NNPC’s prices might include subsidies or under-recovery elements,” Fashola explained.
He also highlighted that the Dangote refinery had previously reduced diesel prices from around N1,600 to N1,000 per litre, noting that diesel now averages N1,150 to N1,200 per litre. He hopes for similar results with petrol but acknowledged the challenges posed by the ongoing crude oil supply crisis.
The IPMAN leader revealed ongoing discussions with refinery officials about potential partnerships and expressed optimism about finalizing these talks soon.
The President of the Dangote Group, Alhaji Aliko Dangote, had earlier projected that the refinery would start producing petrol between August 10 and 12, 2024. However, the refinery's 650,000 barrels per day capacity has yet to produce petrol due to various issues, with the crude supply crisis being a significant factor.