The Independent Petroleum Marketers Association of Nigeria (IPMAN) is optimistic that the Dangote Petroleum Refinery will sell petrol at a lower price of N600 or N650 per liter when it begins production.
This expectation is based on the refinery’s impact on diesel prices, which dropped from N1,600 to N1,000 per liter after the refinery started producing.
IPMAN National Vice President, Hammed Fashola, acknowledged that the ongoing crude supply crisis could affect the refinery’s ability to produce at a lower cost. “Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic,” he said.
Fashola revealed that IPMAN has had business discussions with Dangote Refinery officials on a possible partnership, adding that the marketers are waiting for the refinery to begin production. “The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.
Fashola expressed concerns about the Nigerian National Petroleum Company Limited’s (NNPC) pricing, stating that the official price of N570 per liter does not reflect the true cost of production. “The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” he said.
The Dangote Refinery’s production of petrol, initially projected to begin between August 10 and 12, 2024, has been delayed due to the crude supply crisis. The 650,000 barrels per day capacity refinery is expected to make a significant impact on the petroleum market once it begins production.
