Independent petroleum marketers in Nigeria are hopeful that the Dangote Petroleum Refinery will sell its Premium Motor Spirit, also known as petrol, around N600 or N650 per litre when it is ultimately released into the market.
Dealers affiliated with the Independent Petroleum Marketers Association of Nigeria believe the Dangote refinery would drive down petrol prices in the same way it did diesel.
IPMAN National Vice President, Hammed Fashola, told our correspondent in an interview on Monday that the $20 billion refinery would reduce fuel costs if it had the necessary assistance, particularly in terms of crude supplies.
According to him, the Nigerian National Petroleum Company Limited, the sole importer of PMS, sells to marketers at N570/litre, but most IPMAN members buy from private depot owners for N700 or more.
“We are marketers, and we strive for the best. We have been buying from the NNPC, but if Dangote presents an opportunity and the price is favourable, we will take it. It depends on the price.
“The official price from the NNPC is roughly N570/litre, but third parties, private depots, sell PMS to the majority of our members for N700 or more.
“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.
Speaking about diesel price, Fashola recalled, “We know Dangote refinery crashed the price of diesel. When the refinery started producing, diesel was around N1,600 and it went down to N1,000.
“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic.”
The IPMAN leader said the association has had business discussions with some officials of the refinery on a possible partnership, saying the marketers are waiting for Dangote.
“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.
The PUNCH recalls that the President of the Dangote Group, Alhaji Aliko Dangote, had last month projected that the refinery would begin the production of petrol between August 10 and 12, 2024.
However, the 650,000 barrels per day capacity refinery could not roll out petrol on Monday for different reasons.
Findings showed that the ongoing crude supply crisis might be a setback to the refinery.