Independent petroleum marketers in Nigeria have indicated that the newly constructed Dangote Petroleum Refinery is projected to offer Premium Motor Spirit (PMS), commonly known as petrol, at prices between N600 and N650 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that, much like its influence on diesel prices, the new refinery might drive down petrol costs across the market.
Hammed Fashola, IPMAN’s National Vice President, elaborated on Monday that the $20 billion refinery could potentially lower fuel prices if it receives adequate support, particularly concerning crude oil supply.
Fashola highlighted that the Nigerian National Petroleum Company Limited (NNPCL), the exclusive importer of PMS, currently sells petrol to marketers at N570 per litre. However, many IPMAN members acquire it from private depots at rates exceeding N700 per litre.
“We are constantly seeking the best prices. While we currently source our petrol from NNPC, we are prepared to take advantage of competitive pricing from Dangote. The price will determine our choice,” Fashola said.
He explained, “NNPC’s official price stands at around N570 per litre, but many of our members purchase from private depots at prices upwards of N700. We are hopeful that Dangote can offer petrol at N600 to N650 per litre. A price of N600 would be ideal, but it will depend on Dangote’s production costs. It is important to consider that there might be underlying factors affecting NNPC’s pricing, such as subsidies or under-recovery.”
Fashola also noted the impact of Dangote’s refinery on diesel prices, which initially dropped from approximately N1,600 to N1,000 per litre. The current price is around N1,150 to N1,200 per litre. He expressed hope that a similar effect could be observed for PMS, though he acknowledged the challenge posed by the ongoing crude oil crisis. He cautioned that even if Dangote purchases crude oil in naira, international market prices might still influence costs.
IPMAN is in ongoing discussions with the refinery’s officials about a potential partnership and is awaiting further developments. Fashola concluded, “The discussions are progressing, and we expect to finalize them soon.”
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