Independent petroleum marketers in Nigeria are anticipating that the Dangote Petroleum Refinery will price its Premium Motor Spirit (PMS), commonly known as petrol, between N600 and N650 per litre once it enters the market.
Dealers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) are hopeful that the Dangote refinery will significantly reduce petrol prices, similar to its impact on diesel.
IPMAN National Vice President, Hammed Fashola, expressed this optimism during an interview on Monday.
Fashola explained that the $20 billion refinery could lower fuel costs if it receives adequate support, particularly concerning crude oil supply.
He noted that while the Nigerian National Petroleum Company Limited (NNPC) sells PMS to marketers at N570 per litre, many IPMAN members end up purchasing from private depots at prices of N700 and above.
“We are always looking for the best deal,” Fashola said. “If Dangote offers a favorable price, we will certainly consider it.
The current official price from the NNPC is around N570 per litre, but third-party private depots often sell to our members at N700 or more.”
Fashola remained cautiously optimistic about the potential pricing from Dangote’s refinery, stating, “We hope that Dangote can price between N600 and N650 per litre. N600 would be acceptable, but it will ultimately depend on their production costs.
We need to be honest with ourselves. The NNPC’s pricing includes elements of subsidy or what is now termed under-recovery, which might indicate some hidden costs.”
