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Oil Marketers Propose N550 per Litre as Dangote Refinery Nears Production

Oil Marketers Propose N550 per Litre as Dangote Refinery Nears Production Dangote Refinery Commences Production, Marks Milestone with Fifth Crude Oil Shipment Africa's Largest Refinery, Dangote Receives First Crude Oil Shipment, Expects More in Weeks

Nigerian oil marketers suggest N550 per litre as discussions with Dangote Refinery intensify.

Amidst efforts to address petrol scarcity in Lagos and its neighbouring areas, discussions between Dangote Refinery and oil marketers have gained momentum. As the refinery, set to commence production in May 2024 with a refining capacity of 650,000 barrels per day, prepares to enter the market, stakeholders are actively deliberating on pricing and distribution strategies.

Marketers have proposed a lifting price of N550 per litre to Dangote Refinery, awaiting finalization of negotiations.

Alhaji Abubakar Migandi Garima, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the ongoing discussions, emphasizing the need to tailor prices to local conditions across different regions of the country.

With expectations high for Dangote Refinery to significantly reduce reliance on imported petrol and potentially lower prices domestically, experts and consumers anticipate the benefits of domestic refining.

Professor Wumi Iledare of the Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and Policy Advocacy highlighted the refinery’s potential to mitigate crude oil acquisition costs and bolster Nigeria’s energy independence.

As stakeholders await the outcome of negotiations, the proposed price signals a potential shift in the dynamics of Nigeria’s petrol market, offering hope for improved accessibility and affordability for consumers nationwide.

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