“Prices Will Crash”: Oil Marketers Speak as 2 Refineries Set to Begin Operation
- IPMAN has said it believes that its members believe that the Dangote Refinery and Port Harcourt Refinery will commence operation this August
- IPMAN official Shina Amoo expressed the optimism that despite August being far too gone, the two refineries can still pump petrol as scheduled
- He applauded the decision of the Nigerian government to begin the sale of petrol in naira to local refineries
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that the Dangote Refinery will begin selling petrol in Nigeria this August, as committed by Aliko Dangote, the Chairman of the Dangote Group.
The association also anticipates that the assurance given by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, regarding the Port Harcourt refinery becoming operational this month, will be honored.
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Dangote, Port Harcourt modern refineries to begin operation
The Chairman of IPMAN, NNPC Depot, Ore Western Zone, Shina Amoo, expressed this recently.
According to reports, Amoo said that the two refineries had already promised August, stating that even though August was far gone, the Dangote Refinery could still sell petrol as promised.
The 650,000 bpd-capacity refinery in Lagos has yet to meet its scheduled mid-August deadline to release petrol into the Nigerian market.
The IPMAN Official expressed faith in President Tinubu’s directive that the NNPC and other oil companies sell crude oil to the local refineries in naira to allow them to commence operation.
He also disclosed that the directive that the $19 billion Dangote Refinery equally sell petroleum products to Nigerians in naira was good.
He disclosed that the marketers are already buying petrol from depot owners in naira, stating that the transactions have not been in dollars.
He said supplying crude to local refineries would boost their refining operations.
Amoo commends FG’s plan to sell crude in naira
The IPMAN official said that local refining of crude to petroleum products would crash prices of the products as it would eliminate freighting and landing costs.
Reports said Amoo disclosed a need to implement President Tinubu’s directives to sell crude to refineries in dollars.
Legit.ng earlier reported that Amoo has said that NNPC's failure to sell petrol to independent marketers has led to association members patronising private depots with the product at an exorbitant price.
He disclosed that the NNPC prefers selling petrol to NNPC retail stations rather than independent marketers.
Amoo said the national oil firm's failure to supply petrol to marketers has increased the pump price of the product.
Dangote refinery sets new date for petrol production
Legit.ng earlier reported that the Dangote Refinery has delayed its petrol production date again due to crude oil supply issues.
The refinery reportedly faces significant operational challenges, including sourcing crude oil for production, leading to imports from Brazil and the US.
The 650,000 bpd-capacity refinery has battled to secure crude from the Nigerian National Petroleum Company Limited (NNPCL), which has engaged regulatory authorities over inadequate crude supply.
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Source: Legit.ng
