Marketers are projecting that Dangote petrol could reach N600 per litre, reflecting concerns over rising fuel prices and potential impacts on the broader economy. The forecast highlights the need for monitoring and potential adjustments in fuel pricing policies.
Nigeria’s autonomous petroleum dealers anticipate that the Dangote Petroleum Refinery will offer its Premium Motor Spirit, commonly referred to as petrol, for sale at N600 or N650/litre upon its anticipated market launch.
The Independent Petroleum Marketers Association of Nigeria’s dealers expressed their confidence in the Dangote refinery’s ability to reduce petrol costs, as it had with diesel.
According to Hammed Fashola, the National Vice President of IPMAN, in an interview with our correspondent on Monday, if the $20bn refinery receives necessary support – particularly regarding crude supply – it could reduce fuel expenses.
He stated that the Nigerian National Petroleum Company Limited is the only entity importing PMS and sells to marketers at N570/litre; however, a majority of IPMAN members acquire it from private depot owners for prices exceeding N700.
As marketers, we strive for excellence. While we have been procuring from NNPC thus far, should the chance arise to purchase from Dangote and their pricing proves advantageous, then it is a viable option. Ultimately our decision hinges upon the price offered.
NNPC’s official price for PMS is approximately N570 per litre, however private depots – third parties – sell to most of our members at prices equaling or surpassing N700.
READ ALSO: NNPC Reduced Stake in Dangote Refinery to Invest in CNG, Says Official
Fashola expressed his hope that Dangote would be able to sell at a range of N600 – N650 per litre, factoring in the cost of production. He acknowledged that while N600 was still acceptable, it ultimately depended on Dangote’s expenses involved in manufacturing. Fashola emphasized accuracy and honesty regarding NNPC’s operations which include subsidies or under-recovery schemes; he suspected there were concealed actions occurring within these processes.
Fashola mentioned the decrease in diesel price due to Dangote refinery’s operation. Initially, diesel was priced around N1,600 but went down significantly to N1,000 after the refinery began production.
It is now possible to purchase diesel for either N1,150 or N1,200 per litre. While we anticipate a similar situation with PMS, the ongoing crude oil crisis presents significant difficulties. Even if Dangote purchases crude in naira currency values at international market rates will still result in little change. As such, realism must guide our actions moving forward.
According to the IPMAN leader, potential business partnership talks have been initiated between the association and certain refinery officials. The marketers are currently in a holding pattern awaiting Dangote’s response.
He stated that the discussion was ongoing and progressing as planned. He believed they would soon reach a conclusion and were currently awaiting further developments.
Last month, Alhaji Aliko Dangote, the President of the Dangote Group made a forecast stating that petrol production by the refinery would commence sometime between August 10th and 12th in 2024.
Due to various reasons, the refinery with a capacity of 650,000 barrels per day was unable to produce gasoline on Monday.
The discovery revealed that the current shortage in crude supply could impede the refinery’s progress.
