Marketers Project N600/Litre for Dangote Petrol

By Kingnaafrika

Independent petroleum marketers in Nigeria are hopeful that the Dangote Petroleum Refinery will revolutionize the price of petrol, popularly known as Premium Motor Spirit (PMS), when it finally hits the market.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates that the Dangote refinery could sell PMS at either N600 or N650 per liter. Currently, the Nigerian National Petroleum Company Limited (NNPC) sells PMS to marketers at N570/liter, while private depot owners charge IPMAN members N700 and above. IPMAN hopes that Dangote’s competitive pricing will benefit consumers.

Dangote Refinery previously slashed diesel prices significantly, from N1,600 to N1,000 per liter. The refinery’s impact on diesel prices demonstrates its potential to influence the PMS market as well.

The ongoing crude supply crisis poses a challenge for Dangote Refinery. Even if Dangote buys crude in naira, international market prices still play a role. Realism is essential in assessing the refinery’s impact on PMS prices.

IPMAN has engaged in business discussions with Dangote Refinery officials regarding a possible partnership. The association eagerly awaits Dangote’s decision.

The Dangote Group’s President, Alhaji Aliko Dangote, projected that the refinery would begin petrol production between August 10 and 12, 2024.

However, the 650,000 barrels per day capacity refinery faced delays due to the ongoing crude supply crisis¹².