Nigeria’s oil marketers have suggested that the price of petrol may decrease to between ₦600 and ₦650 per liter once Dangote Refinery begins production, depending on its production costs.
According to the Punch, this was revealed by Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), in a statement issued on Monday.
His comments come in the wake of reports that the $20 billion Dangote Refinery may not start fuel production by mid-August 2024, as previously projected by the President of Dangote Group, Aliko Dangote.
Fashola highlighted that a significant issue facing the Lagos-based refinery is the ongoing crude oil supply crisis. Currently, the Nigerian National Petroleum Company Limited (NNPC) offers petrol at an official price of ₦570 per liter, while private depots are selling at ₦700 per liter.
Fashola expressed optimism that with Dangote Refinery’s entry into the market, the pump price of petrol might decrease to between ₦600 and ₦650 per liter.
“The official price from NNPC is around ₦570 per liter, but private depots are selling PMS to most of our members at ₦700 and above,” he said. “With Dangote’s fuel production, we hope the price can be between ₦600 and ₦650 per liter. Even ₦600 would be acceptable, but it ultimately depends on Dangote’s production costs.”
This development comes on the heels of a recent disagreement between Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission regarding the allocation of 26 million barrels of crude oil.
