Dealers affiliated with the Independent Petroleum Marketers Association of Nigeria believe the Dangote refinery would drive down petrol prices in the same way it did diesel.
IPMAN National Vice President, Hammed Fashola, told our correspondent in an interview on Monday that the $20 billion refinery would reduce fuel costs if it had the necessary assistance, particularly in terms of crude supplies
The Nigerian National Petroleum Company Limited, the exclusive importer of PMS, has been supplying it to marketers for N570 per litre, but the majority of IPMAN members purchase it from private depot owners for N700 and more, he claims.
As marketers, we strive for excellence. We have been purchasing from the NNPC, but we will seize Dangote’s opportunity if the price is right. That is contingent upon the cost.
“The majority of our members purchase PMS from third parties, private depots, for N700 and more, whereas the NNPC’s official price is approximately N570 per litre.
We anticipate that Dangote will sell between N600 and N650 per litre, plus or less. N600 is still functioning properly. That is contingent upon Dangote’s production costs, though.
We need to be honest and truthful with ourselves. The NNPC under discussion contains a subsidy component, or what they now refer to as under-recovery. Something is hiding there, I believe,” said Fashola.
“We know Dangote refinery crashed the price of diesel,” Fashola recalled when discussing the cost of diesel. Diesel cost about N1,600 when the refinery first began to produce it, and it now only costs N1,000.
Diesel is now available for either N1,150 or N1,200 per litre. Although this crude crisis is a significant difficulty, we anticipate the same with PMS. It won’t matter if Dangote purchases crude in naira if the price is the same as it is on the global market. We must exercise realism.
The head of IPMAN stated that the organization has discussed potential commercial partnerships with several refinery executives and that the marketers are awaiting Dangote’s arrival.
“The conversation goes on. We’re headed in the right direction. I believe we will wrap up the conversation fairly soon. He said, “We’re waiting.
Recall that last month, Alhaji Aliko Dangote, President of the Dangote Group, predicted that the refinery will start producing gasoline on August 10 or 12, 2024.
For various reasons, the refinery with a capacity of 650,000 barrels per day was unable to start producing gasoline on Monday.
The continued difficulty in the supply of crude oil may be a hindrance to the refinery, according to findings.
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