Nigerians To Pay Lower Prices for Fuel at Filling Stations, but Change Is Very Little
- Nigerians are unlikely to see significant price reductions when Dangote Refinery begins selling petrol directly to marketers
- The report shows that only N36 per litre reduction is expected, and there is an ongoing negotiation with the Dangote Group
- Anthony Chiejina, Dangote Group's Chief Branding and Communications Officer, also confirmed talks with marketers
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.
The price of Premium Motor Spirit (PMS), also known as petrol, is set to reduce, but it will not be a significant change.
Nigerians currently pay between N1,100 to N1,300 per litre for fuel at filling stations across the country.
Source: Getty Images
According to the Nation report, ongoing discussions between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Dangote refinery will likely bring about an N36 per litre fuel price reduction.
The report noted that Dangote Petrol is benchmarked against the international market, with little to celebrate.
The source, who wasn't named, said:
"The price is based on international pricing. I don’t know why you people think IPMAN is going to get the PMS below international cost price.
"If anything will be removed, it will be N36/litre, which is NNPCL’s financing cost for their letter of credit and profit margin."
Dangote Refinery discusses with marketers
Anthony Chiejina, the Dangote Refinery’s Group Chief Branding and Communications Officer, confirmed ongoing talks with IPMAN.
He, however, refrained from revealing the agreed price, stating that a public statement would have been issued.
Similarly, in an earlier discussion with Legit.ng Chijena explained that the price of petrol is not fixed by the refinery but is based on fair international market dynamics.
"Any information for the public will be shared openly."
Dangote refinery to export petrol
Legit.ng previously reported that the Dangote Refinery has agreed to export more than 200,000MT of its petrol, as local demand for more expensive, higher-quality products has disappointed many Nigerians.
An executive at the refinery disclosed this, saying that the mega refinery has signed its first export orders for its petrol and will begin dispatching the products immediately after the ships arrive.
The giant refinery has been touted as supplying Nigeria’s petrol demand and servicing about 340,000 barrels of local market, ending the country’s dependence on petrol imports.
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Source: Legit.ng
