Bella Ifasola
The Independent petroleum marketers in Nigeria have stated that the upcoming Dangote Petroleum Refinery will offer Premium Motor Spirit (PMS), also known as petrol, at prices ranging from N600 to N650 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said it believed that, similar to its impact on diesel prices, the new refinery could reduce the cost of petrol in the market.
IPMAN National Vice President, Hammed Fashola, stated on Monday that the $20 billion facility could lower fuel costs if it receives the necessary support, particularly regarding crude supply.
Fashola explained that the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of PMS, sells to marketers at N570 per litre. However, many IPMAN members purchase from private depot owners at N700 or more.
He said: “We are marketers and always seek the best prices. While we currently buy from the NNPC, if Dangote offers a competitive price, we will take advantage of it. It all depends on the price.
“The official price from the NNPC is around N570 per litre, but third-party private depots sell to most of our members at N700 and above. We hope Dangote can offer between N600 and N650 per litre. N600 would be acceptable, but this depends on Dangote’s production costs. We need to be honest; there might be hidden elements in the NNPC pricing, such as subsidies or under-recovery.”
Regarding diesel prices, Fashola noted, “Dangote’s refinery initially reduced diesel prices from about N1,600 to N1,000. Currently, diesel is priced around N1,150 to N1,200 per litre. We hope for a similar impact on PMS, though the current crude crisis poses a significant challenge. Even if Dangote buys crude in naira, if it reflects international market prices, it may not make a difference. We must be realistic.”
He added that IPMAN has engaged in discussions with refinery officials about a potential partnership, and they are awaiting further developments.
“The discussions are ongoing, and we expect to finalize them soon,” the IPMAN official added.