Independent petroleum marketers in Nigeria are eagerly anticipating the Dangote Petroleum Refinery‘s entry into the market, hoping that the company will sell its Premium Motor Spirit (PMS) at a competitive price.
According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the refinery’s arrival could significantly reduce the cost of petrol.
IPMAN’s National Vice President, Hammed Fashola, expressed optimism that the refinery’s production would bring down the price of petrol, citing the example of diesel. “When Dangote refinery started producing diesel, it was around N1,600 per litre, but it went down to N1,000. We expect the same with PMS,” he said.
Currently, the Nigerian National Petroleum Company Limited (NNPC) is selling PMS to marketers at N570 per litre, but most IPMAN members buy from private depot owners at N700 and above. Fashola believes that if Dangote sells its PMS at a price between N600 and N650 per litre, it would be attractive to marketers.
The IPMAN leader noted that the association has been in talks with officials of the Dangote refinery about a possible partnership. “We have had discussions with some officials of the refinery on a possible partnership. We are waiting for Dangote,” he said.
However, the refinery’s planned start date for producing petrol has been delayed due to ongoing crude supply issues. Despite this setback, IPMAN remains optimistic about the potential benefits of the Dangote refinery.
The Nigerian government has also been under pressure to reduce fuel prices, which have been a subject of controversy in recent years. If Dangote’s refinery can successfully produce petrol at a competitive price, it could be a major boost to the country’s economy.
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