“It's Cheaper”: Marketers Compare Dangote Petrol Price with Imported Fuel, Fault NNPC on Cost
- Oil marketers have disclosed that the price of Dangote petrol is cheaper than imported fuel
- The national publicity secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, said a litre of gasoline at Dangote is $0.52
- He said that the N898 per litre the NNPC bought the petrol is cheaper compared to the N1,200 landing cost of the product from abroad
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Oil marketers have revealed that the price at which Dangote Refinery sold its petrol to the Nigerian National Petroleum Company Limited (NNPC) is way cheaper than the cost of the product when imported from abroad.
The NNPC has said that the Dangote Refinery sold the product at N898 per litre, leading to price adjustments nationwide.
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Prices could crash to N550 per litre
However, Dangote Refinery management refuted the state oil company's claims, saying that it sold the product cheaper than NNPC imports from overseas.
The publicity secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, said that the amount the NNPC bought the product reflects the rising exchange.
He stressed that with the right interventions from the Nigerian government, the pump price of petrol from the Dangote Refinery may crash below N600 per litre.
He said the N898 per litre could drop to N550 if the exchange rate for locally produced products is pegged at N1,000 per litre.
Idoko disclosed that the PMS sold by the Dangote refinery is mainly made from imported crude and bought locally in dollars.
He says the price will drop if local refiners buy the product in naira.
Dangote petrol is N300 cheaper.
He stated that NNPC supplied only 60% of the crude to Dangote while the rest were imported at the international market price.
Per Idoko, the NNPC buys the product at N300, below the landing cost of almost N1,200 per litre.
The CORAN official said that the N300 per litre differential would be handled by local refining without government interventions.
He stated that the naira crude oil sale, slated to begin in October, would free up about 40% of Nigeria's FX, which went into servicing the importation of petroleum products.
Punch reports that the CORAN spokesman said that Dangote petrol prices could significantly crash if the committee working on crude sales to local refineries sells the product in the local currency and at a discount and pegs the exchange rate at N1,000 per dollar.
Idoko decried the imposition of levies and taxes on the PMS price by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is reflected in the estimated prices issued by the NNPC.
He said that a litre of Dangote petrol is sold at $0.52, translating to N842.61 using the exchange rate of N1,637 per dollar.
He noted that this would have been N520 per litre if the FX rate was pegged at N1,000 to a dollar.
NNPC crashes Dangote petrol price
Legit.ng earlier reported that many oil marketers have begun purchasing products from the national oil firm, confirming NNPC that independent marketers still need to afford Dangote petrol due to its high cost.
Findings show that 11Plc, TotalEnergies, AA Rano, and other independent marketers have begun lifting Dangote petrol via the Nigerian National Petroleum Company (NNPC) Trading Limited to retail outlets nationwide at N765.99 per litre.
According to reports, some petroleum marketers who completed payments on the NNPC trading portal began lifting petrol earlier this week, according to the existing agreement between marketers and the refinery.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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