Marketers Give Real Cost of Petrol, Anticipate Impact on Dangote Refinery Fuel Price
- The landing cost of imported petrol has surged to about N1,120 per litre, oil marketers have revealed
- The marketers have expressed concerns that the Dangote Refinery's pricing might fall within a similar range
- There appears to be an agreement on a free market, and marketers may import PMS if Dangote's price is high
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Oil marketers are increasingly concerned over the delay in announcing the price of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery.
The marketers are worried that the price could be high as the landing cost of imported petrol has soared to approximately N1,120 per litre.
Source: Getty Images
Punch reports that the marketers have indicated that if the Dangote refinery sets a high price for its petrol, marketers may turn to importing the commodity.
Legit.ng earlier reported that the Nigerian government recently opened the market for competition, allowing multiple players to participate in fuel importation.
Oil marketers' new landing cost
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, stated that the association is in discussions with foreign partners regarding the importation of PMS, pending the announcement of Dangote's pricing.
He warned that a high price from Dangote would likely lead to significant importation by independent marketers.
His words
"We are waiting for our foreign partners to calculate how much it will cost to bring petrol into Nigeria. If the landing cost is cheaper than Dangote's price, we will consider importing the product."
He added that an open market encourages competition and ensures product availability.
Dangote refinery awaits
An official from the Dangote Group told Punch on condition of anonymity that the refinery would sell petrol locally regardless of whether the NNPC agrees to be its off-taker.
The official highlighted Aliko Dangote's commitment to providing affordable petrol to Nigerians, noting that the refinery had previously reduced the price of diesel significantly.
The official said:
"Alhaji Aliko Dangote is a nationalistic Nigerian; he loves this nation, and he is ready to make sacrifices."
Protest rocks Delta over fuel price
Earlier, Legit.ng reported that youths, women, and commercial tricycle operators in Warri and Effurun metropolises of Delta state took to the streets in a peaceful protest over the persistent fuel scarcity amid the recent price hike.
The protesters marched through the major roads, calling President Tinubu to urgently intervene and reverse the fuel price hike.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
