“I Can Assure You”: Like Diesel, Oil Marketers Give Condition to Crash Petrol Price

“I Can Assure You”: Like Diesel, Oil Marketers Give Condition to Crash Petrol Price

  • Oil marketers have provided several justifications for why petrol prices at the pump won't drop below N300 per litre
  • The marketers said this will only come to fruition if Nigeria starts manufacturing PMS in significant quantities
  • Their reactions followed claims that petrol prices will be crashed by Dangote refinery and other modular refineries

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Major Energy Marketers Association of Nigeria (MEMAN), which represents oil marketers, has highlighted the reasons why the price of gasoline at the pump cannot decrease below N300 a litre.

Marketers speak on conditions to crash petrol to N300/litre in Nigeria
Oil marketers speak on petrol price in Nigeria. Photo Credit: Maskot
Source: Getty Images

The marketers stated in reaction to rumors that the Dangote Petroleum Refinery and other indigenous producers and refinery operators will begin significant production and lower the pump price of Premium Motor Spirit to approximately N300 per litre.

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Legit.ng earlier reported that refinery owners, under the aegis of the Crude Oil Refinery Owners Association of Nigeria (CORAN), explained that providing enough crude oil to local refiners would crash the price of petrol. They added that foreign refineries were cheating Nigeria.

CORAN stated that, like diesel prices, which sold for N1,700 before Dangote began production but later crashed to N1,200, the cost of petrol will crash when mass production begins, The sun reported.

Marketers' reactions

Commenting on the development, MEMAN said the N300 price can only be attained if the federal government guarantees that local refiners will have access to sufficient crude oil.

The group also accused foreign refineries of taking advantage of Nigeria.

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Dangote refinery begins petrol production, marketers register to lift product at reduced price

Eche Idoko, the publicity secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), also said:

“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,”
“If we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure you that we should be able to buy PMS at N300/litre as the pump price.
“Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries to work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

Filling stations to buy fuel Priced at N200

Legit.ng reported that some filling stations across Nigeria have commenced the sale of Compressed Natural Gas (CNG) fuel, which is seen as a viable alternative to Premium Motor Spirit, also known as petrol.

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CNG is a fuel gas under pressure that remains clear, odourless and non-corrosive.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently ordered all filling stations across the country to commence selling CNG.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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