Marketers Finally Set Petrol Prices from Dangote Refinery, Says Costs Will Crash
- Petroleum Marketers have disclosed the amount at which they expect the Dangote Refinery to sell petrol when it releases the product to Nigerians
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) said they expect the refinery to crash the price of the product
- They said that they expect that Dangote Refinery would sell the product at about N600 per litre to them
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Independent petroleum marketers in Nigeria hope that the Dangote Petroleum Refinery will sell its petrol at N600 per litre when it launches it into the Nigerian market.
The marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) said they believe that the 650,000-capacity refinery would crash the price of petrol like it with diesel.
Source: UGC
Marketers hope for a price crash
IPMAN national vice president Hammed Fashola disclosed on Monday, August 12, 2024, that the facility would reduce its fuel cost if it received the needed support regarding crude oil supply.
Punch reports that Hammed said the Nigerian Petroleum Company Limited (NNPCL) sells petrol to marketers at N570 per litre, while IPMAN members buy from private depots above N700.
He disclosed that the marketers might ditch the NNPC and the depots if Dangote has better pricing.
According to the IPMAN top shot, the marketers hope Dangote can sell at about N600 per litre, depending on the company's cost of production.
He said the NNPC has some subsidy embedded in its pricing, saying there is something hidden in NNPC pricing.
Landing costs rise above N1,000 per litre
Legit.ng earlier reported that the landing cost of petrol hit around N1,100 sometime ago, forcing the Nigerian government to subsidise pump prices.
Fashola disclosed that the refinery crashed diesel prices from N1,600 to N1,000 per litre.
He said Nigerians now buy diesel at N1,200, and marketers expect the same with petrol from the Dangote Refinery.
According to the IPMAN leader, the association has been discussing a potential partnership with some refinery officials, stating that marketers are waiting for Dangote.
The IPMAN leader said the association has had business discussions with some refinery officials on a possible partnership, saying the marketers are waiting for Dangote.
Nigerians expectant of Dangote petrol
A previous report by Legit.ng disclosed that the Chairman of the Dangote Group, Aliko Dangote, said last month that the $19 billion refinery would begin producing petrol in August 2024.
Analysts have said the crude oil crisis might delay the refinery’s plans to roll out petrol as scheduled.
Meanwhile, another report has said that marketers have disclosed that petrol cannot sell below N1,500 per litre in the current situation
The marketers disclosed that the level of supply, which leaves a gap between the cost-reflective price and present pump price of about N617 and N820 per litre, is disrupting supply.
Dangote, 7 other refineries set to produce fuel in August
Legit.ng earlier reported that data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) shows that about eight Nigerian refineries are expected to commence operations in August 2024.
The refineries’ combined capacity is estimated at 864,500 barrels per day, which places a huge demand on the NUPRC for crude oil.
Some refineries, including the Port Harcourt refinery, Waltersmith Refinery, the Dangote Refinery, and others, demand about 597,700 barrels of crude oil from the oil regulator.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
