Marketers Predict N600/litre For Dangote Petrol

Independent petroleum marketers in Nigeria are hoping that the Dangote Petroleum Refinery will sell its Premium Motor Spirit, popularly called petrol, at N600 or N650/litre when it is finally released into the market.

Dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria said they believe that the Dangote refinery would crash the price of petrol as it did with diesel.

IPMAN National Vice President, Hammed Fashola, told our correspondent in an interview on Monday that the $20bn refinery would bring down the cost of fuel if it gets the needed support, especially as it has to do with crude supply.

According to him, the Nigerian National Petroleum Company Limited, which is the sole importer of PMS has been selling to marketers at N570/litre, but most IPMAN members buy from private depot owners at N700 and above.

“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.

“The official price from the NNPC is around N570/litre, but the third parties, the private depots sell PMS to most of our members at N700 and above.

“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.

Speaking about diesel price, Fashola recalled, “We know Dangote refinery crashed the price of diesel. When the refinery started producing, diesel was around N1,600 and it went down to N1,000.

“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. 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.”

The IPMAN leader said the association has had business discussions with some officials of the refinery on a possible partnership, saying the marketers are waiting for Dangote.

“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.

Recall that the President of the Dangote Group, Alhaji Aliko Dangote, had last month projected that the refinery would begin petrol production between August 10 and 12, 2024.

However, the 650,000 barrels per day capacity refinery could not roll out petrol on Monday for different reasons.

Findings showed that the ongoing crude supply crisis might be a setback to the refinery.

the engine (constitution) of the Nigerian state has knocked and should be replaced.

“The political elite has to agree. If you are driving a car and the car has a knocked engine. Is it not the engine you should look at? Do you begin to panel-beat the car, spray it with beautiful paint, and buy new tyres? Will that move the car?

“I am saying that the engine of the Nigerian state, for now, is knocked and it is giving rise to all these mutual suspicion, religious intolerance.”

He said economic reforms are good but must not be put before a people-centered constitution. He said the National Assembly must agree to a new constitution for the problems of Nigeria to vanish.

Ozekhome’s comments followed the 2014 National Conference Report which recommended constitutional, amendment, community policing, fiscal federalism, and restructuring, among others.

A decade ago, then-President Goodluck Jonathan and other leaders organized the conference to proffer workable suggestions on how to move the country forward.

The national dialogue began on March 17, 2014, with the late respected Jurist, Justice Idris Kutigi (retd.), as its chairman.

494 Nigerians from all walks of life attended the conference for about five months. About N10bn was spent on the confab which produced over 600 recommendations including suggestions for the restructuring of Nigeria’s political, economic, social, and security systems to quell agitations from different geopolitical sections and achieve long-lasting peace.

However, the recommendations of the confab have not been implemented by successive administrations.