Dangote, Other Refinery Owners Give Conditions to Crash Petrol Prices
- Local refineries have said that the price of petrol can crash to as low as N600 per if the Nigerian government can intervene
- The refiners asked the government to peg the exchange rate at N1,000 per dollar to crash the price of petrol in Nigeria
- Eche Idoko, publicity secretary of refinery owners in Nigeria, said that the Dangote refinery sold petrol to NNPC at N300 below the landing cost
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Refinery owners have stated that with the right interventions from the Nigerian government, the pump price of petrol from Dangote and other refineries could drop below N600 per litre.
The publicity secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, disclosed that the association still firmly believes that local refineries like Dangote and others can crash the petrol price.
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Dangote petrol N300 cheaper than imported petrol
He disclosed that the N898 per litre the Nigerian National Petroleum Company Limited claimed to have bought the product from Dangote reflects the rising exchange rate.
Idoko said the PMS sold by Dangote since last week was produced from imported crude and locally sourced FX.
He disclosed that the refiners had promised that the petrol prices would drop if the Nigerian government began crude oil sales in naira, saying that the refinery owners still stand by their words.
According to him, at N898 per litre, the NNPC is still buying the product at N300, below the landing cost of almost N1,200 per litre.
Punch reports that the CORAN spokesman added that the naira crude sale would free up about 40% of Nigeria’s FX, which he said goes into servicing petroleum product imports.
FG to peg FX at N1,000 per litre
He asked the Nigerian government committee working on crude sales to local refiners to sell feedstock in naira at a discount and peg the exchange rate at N1,000 per dollar.
He noted that the special committee had gone back and was still working.
He decried the imposition of levies and taxes on the PMS price by the Nigerian Midstream and Downstream Petroleum Regulatory Authority as reflected in the price list released by the NNPC.
He emphasised that a litre of Dangote petrol is sold for $0.52, which translates to N842.61 when calculated at an exchange rate of N1,637 per dollar.
He said the PMS price would have been N520 per litre if FX was pegged at N1,000 per dollar.
NNPC, Dangote refinery at war?
Recall that Dangote and NNPC have been fighting over the refinery's petrol price, leading to the refinery labelling NNPC's statement of purchasing petrol at N898 per litre as misleading.
The company insisted that it sold the product to the state oil company below the landing cost, despite selling in dollars.
NNPC, however, asked the refinery for a discount, saying the cost would be passed on to the final consumer 100%.
Three marketers abandon Dangote petrol
Legit.ng previously reported that three prominent oil marketers were expecting vessels of imported petrol.
The dealers disclosed that vessels are bringing about 141 million litres of petrol into Nigeria following the Nigerian government's total deregulation of the downstream oil sector.
The marketers also disclosed the recent rise in prices of Dangote petrol issued by the Nigerian National Petroleum Company Limited (NNPC) on Monday, September 16, 20024, allowed for petrol imports.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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