Nigeria’s oil marketers have indicated that the new Dangote Refinery could potentially reduce the price of petrol to between N600 and N650 per liter, depending on its production costs.
Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria, made this announcement in a statement on Monday. His remarks come amid reports that the $20 billion refinery may not begin fuel production in mid-August 2024, contrary to earlier projections by Aliko Dangote, President of Dangote Group.
Fashola highlighted that the refinery is currently facing significant challenges related to crude oil supply. Presently, the official petrol price from the Nigerian National Petroleum Company Limited (NNPC) is approximately N570 per liter, while private depots sell it at around N700 per liter.
He noted, “The official price from NNPC is around N570 per liter, but private depots are selling PMS to many of our members at N700 and above. We anticipate that when Dangote’s fuel becomes available, the price could potentially drop to between N600 and N650 per liter, depending on the production costs at the refinery.”
Fashola added that while a price of N600 per liter would be a positive development, it remains contingent on Dangote Refinery’s production expenses.
It is also worth noting that last week, there was a public dispute between the Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission over the allocation of 26 million barrels of crude oil.
