Dangote Petrol May Sell At ₦600/Litre – Marketers

Independent petroleum marketers in Nigeria are anticipating that petrol from the Dangote Petroleum Refinery will be sold at a price of ₦600 to ₦650 per litre once it is released to the market.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) believes that the Dangote refinery, like it did with diesel, will help reduce the cost of petrol.

IPMAN’s National Vice President, Hammed Fashola, explained in an interview with The Punch that the $20 billion refinery could lower fuel prices, provided it receives adequate support, particularly in securing crude oil supplies.

He noted that the Nigerian National Petroleum Company Limited (NNPCL), the current sole importer of petrol, sells the product to marketers at ₦570 per litre. However, many IPMAN members purchase it from private depot owners at prices exceeding ₦700 per litre.

“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.

“The official price from the NNPC is around ₦570/litre, but the third parties, the private depots sell PMS to most of our members at ₦700 and above.

“Plus or minus, we hope Dangote can sell between ₦600 and ₦650/litre. ₦600 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 on diesel prices, Fashola mentioned that when the Dangote refinery began producing diesel, the price dropped from around ₦1,600 to ₦1,000 per litre. Currently, diesel is priced at ₦1,150 to ₦1,200 per litre.

He hoped for a similar impact on petrol (PMS) prices but noted that the ongoing crude supply crisis poses a significant 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,” he added.

Fashola also revealed that IPMAN has been in discussions with officials from the Dangote refinery regarding a potential partnership, and they are awaiting further developments.