The Independent Petroleum Marketers Association of Nigeria (IPMAN) is optimistic that the Dangote Petroleum Refinery will sell Premium Motor Spirit (PMS), commonly known as petrol, at a price range of N600 to N650 per litre once it enters the market. This expectation follows the refinery's success in reducing diesel prices, with hopes that a similar effect will be seen for petrol.
IPMAN's National Vice President, Hammed Fashola, expressed these sentiments in a recent interview, highlighting the potential impact of the $20 billion refinery on Nigeria's fuel market. Fashola noted that while the Nigerian National Petroleum Company Limited (NNPC) sells PMS to marketers at about N570/litre, many IPMAN members purchase it from private depots at prices exceeding N700/litre.
Fashola emphasized that the price Dangote Refinery sets will be crucial, as IPMAN is always looking for the best deals. He pointed out that if Dangote can offer petrol within the N600 to N650 range, it would be a favorable option for marketers. However, the final price will depend on the production costs and crude supply challenges the refinery faces.
Reflecting on the refinery's impact on diesel prices, Fashola recalled that when Dangote Refinery began producing diesel, prices dropped from N1,600 to around N1,000 per litre, with current prices hovering between N1,150 and N1,200. He hopes a similar trend will occur with petrol, though he acknowledged that the ongoing crude supply crisis presents a significant challenge.
IPMAN has engaged in business discussions with officials from Dangote Refinery regarding a potential partnership, and Fashola indicated that these talks are progressing, with marketers eagerly awaiting the refinery's petrol production.
Although Dangote Group President, Alhaji Aliko Dangote, had projected that petrol production would commence between August 10 and 12, 2024, the refinery has faced delays due to the crude supply crisis, preventing it from rolling out petrol on schedule.
