3 months ago
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- Oil marketers in Nigeria have hinted at the petrol prices from the Dangote Refinery when it begins operation
- The marketers disclosed that the product from the refinery would likely be priced at international market rates, above domestic costs
- They say they can only sell the product if the NNPC purchases the product from Dangote and resells it to Nigerians at affordable rates
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Oil Marketers have disclosed that they cannot solely purchase petrol from the Dangote Refinery when it begins to sell the product to Nigerians.
The oil marketers disclosed that they will sell the product at the prevailing pump prices at petrol stations in Nigeria unless the Nigerian National Petroleum Company Limited (NNPC) intervenes.
Source: Getty Images
Dangote promises petrol in August
Aliko Dangote, President of the Dangote Group, had said that the refinery would commence selling petrol in August after resolving crude oil supply challenges with the help of NNPC and the Nigerian government.
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However, reports say that no marketer in Nigeria would purchase the product from the $20 billion refinery because it would be priced at the international market rate, higher than the domestic cost.
Punch reports that the Deputy National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said that petrol from the facility would be sold at the international market price, saying marketers would be wary of paying such a rate.
Dangote to likey sell petrol at international rate
According to the top IPMAN member, there has yet to be any official communication from the NNPC and the Dangote Refinery management on petrol pricing from the plant.
He said the reason is that the refinery is a private commercial entity that would want to recoup refining costs and make a profit in the process. He stated that the product’s current price is below the international market prices.
PMS Landing cost rises
Legit.ng reported that the landing cost of PMS recently hit N1,100 per litre, which experts say is being subsidized by the Nigerian government.
The IPMAN official disclosed that NNPC needs to intervene so that Nigerians can start purchasing petrol from the 650,000bpd-capacity refinery and resell it to them at an affordable cost.
The Dangote Refinery management is facing a face-off following crude oil supply challenges.
The refinery disclosed that the national oil body supplies it with limited crude, so the facility imports crude from the US and Brazil.
Filling stations adjust petrol prices after the NNPC message
Legit.ng previously reported that petrol stations have adjusted their pump prices after the Nigeria National Petroleum Company Limited (NNPC) said hitches in discharging petrol are responsible for the scarcity.
Findings by Legit.ng show that black marketers are exploiting the situation to sell petrol for as high as N1,300 per litre and N1,500 in some parts of Lagos and Ogun states.
The second petrol scarcity in two weeks has brought to the forefront the importance of local refining, as NNPC is the sole importer of the product in Nigeria.
Source: Legit.ng
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