NO MORE N800/Litre! See The Predicted Price Dangote Refinery Will Sell Its Fuel
Nigerians might soon see some relief at the fuel pumps as independent petroleum marketers are projecting a lower price for petrol once the Dangote Petroleum Refinery begins selling its products. With fuel prices currently hovering around N800/litre in some areas, the new projections offer a glimmer of hope for consumers across the country.
Independent marketers under the umbrella of the Independent Petroleum Marketers Association of Nigeria (IPMAN) are optimistic that the Dangote Refinery will sell its Premium Motor Spirit (PMS), commonly known as petrol, at a much lower rate of N600 to N650/litre when it hits the market. This expectation stems from the belief that the refinery, which has already had a positive impact on diesel prices, will do the same for petrol.
The National Vice President of IPMAN, Hammed Fashola, shared this outlook during an interview on Monday. He explained that if the $20 billion Dangote Refinery receives the necessary support, particularly in securing a stable supply of crude oil, it could significantly reduce the cost of fuel in Nigeria.
Currently, the Nigerian National Petroleum Company (NNPC), which is the sole importer of PMS in the country, sells petrol to marketers at N570/litre. However, due to a complex supply chain, most IPMAN members end up buying from private depots at prices as high as N700/litre or more. This has contributed to the inflated prices consumers are currently experiencing.
Fashola expressed hope that the Dangote Refinery would offer a more favorable price. ” 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 favorable, we will grab it. It depends on the price, ” he said. He added that even a price of N600/litre would be an improvement, though the final price will depend on the cost of production from Dangote’ s end.
Fashola also pointed out that when the Dangote Refinery began producing diesel, it helped bring the price down from N1, 600/litre to as low as N1, 000/litre, with current prices ranging between N1, 150 and N1, 200/litre. Marketers are hoping for a similar reduction in petrol prices, though the ongoing global crude supply crisis poses a challenge.
The IPMAN leader also revealed that the association is in ongoing business discussions with officials from the Dangote Refinery, exploring potential partnerships and awaiting the refinery’ s next steps.
It’ s worth noting that the President of the Dangote Group, Alhaji Aliko Dangote, had previously announced that the refinery would begin producing petrol between August 10 and 12, 2024. However, due to unforeseen challenges, including issues with crude supply, the refinery has yet to commence petrol production.
As Nigerians await the much- anticipated price reduction, it’ s clear that all eyes are on the Dangote Refinery to see if it can deliver on its promise to make fuel more affordable for the average consumer.
What do you think will happen? Drop your thoughts and opinions in the comments section below.
