Marketers Target N600/litre For Dangote Petrol

Nigeria’s independent petroleum marketers are eagerly awaiting the entry of the Dangote Petroleum Refinery into the market, hoping it will lead to a significant reduction in petrol prices. The Independent Petroleum Marketers Association of Nigeria (IPMAN) believes the refinery will sell petrol at a competitive price of N600 or N650 per liter, crashing the current market price.

IPMAN’s National Vice President, Hammed Fashola, expressed optimism that the $20 billion refinery will bring down fuel costs, citing its impact on diesel prices. “We know Dangote refinery crashed the price of diesel… We expect the same with PMS,” he said.

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Fashola noted that the Nigerian National Petroleum Company Limited (NNPC) sells petrol to marketers at N570 per liter, but most IPMAN members buy from private depot owners at N700 and above. He emphasized that the association is waiting for Dangote to conclude discussions on a possible partnership.

While the Dangote Group President, Alhaji Aliko Dangote, had projected the refinery’s petrol production to begin between August 10 and 12, 2024, the 650,000 barrels per day capacity refinery faced setbacks, including crude supply challenges.

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Fashola stated, “We are marketers, we go for the best… Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of production from Dangote’s end.” He acknowledged the challenges posed by the crude supply crisis, saying, “We have to be realistic.”