Reports have indicated that Dangote Refinery and oil marketers have intensified efforts at taking final decisions on pricing and delivery of petrol to filling stations nationwide.
Heraldviews understands
that Dangote Refinery which can refine 650,000 barrels per day, bpd of crude
oil, intends to commence production and distribution of the product, the bulk
of which is currently imported from the global market, in May 2024.
According to Vanguard, the parties
have been meeting and negotiating pricing, distribution and margins to
stakeholders in the value chain, including transporters and insurers
Recall that depot owners buy
the product from NNPC Limited at N556 per litre and sell to independents marketers
at N640 per litre.
It was, however learnt that
independent marketers have proposed N550 per litre to the management of Dangote
Refinery who are currenty in a discussion with them.
The President of Independent
Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Migandi Garima,
who confirmed the development to the aforementioned publication, said, “We have
been discussing with Dangote Refinery. The discussion, centering on pricing,
margins and other issues, is still ongoing.
“We have proposed that the
lifting price should be N550 per litre in Lagos. The price of the product will
differ from one part of Nigeria to another because of distance and cost of
delivering petrol to different locations.
“We are currently waiting on
Dangote Refinery to conclude and communicate the price per litre, so we can
plan to lift the product when it comes on stream.
“We expect that the price of
the locally refined petrol would be cheaper than imported petrol, due mainly to
local availability of the bulk of its crude oil and removal of transportation
cost.”
Similarly, Executive Director,
Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and
Policy Advocacy, Professor Wumi Iledare, said the coming on stream of Dangote
Refinery presented an opportunity for Nigerians to enjoy cheaper prices of
petrol now or later.
He said: “The price of
petroleum is majorly correlated with the acquisition cost of crude oil. The
cost of running the refinery and opportunity cost of capital contribute
marginally. Distribution and retailing costs are important but the crude cost
matter the most.
“Thus, low price of petrol in
Nigeria when Dangote Refinery operates at full capacity, is a possibility
indeed, ceteris paribus.”
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