Marketers Propose New Petrol Prices, Send Request to Dangote Refinery
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asked Dangote Refinery to lower the petrol prices further
- The association said that the current N825 per litre ex-depot price is not cheap enough, considering the operating environment
- Chinedu Ukadike, IPMAN’s publicity secretary, said petrol from the refinery should sell below N750 per litre
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has proposed a new PMS price for the Dangote Refinery.
The association said the mega refinery should sell petrol below the current N825 per litre ex-depot price.
Source: Getty Images
IPMAN request a new petrol price
IPMAN’s publicity secretary, Chinedu Ukadike, disclosed this recently, stating that the refinery has all the enabling reasons to sell petrol below the current gantry price.
The IPMAN scribe was reacting to a comment by Aliko Dangote, Chairman of the Dangote Group, in which he said that his refinery has contributed to a continued decline in fuel prices, leading to Nigerians paying 55% less than other West African countries.
Ukadile said, despite Dangote’s assertion, petrol should be far cheaper in Nigeria at about N750 per litre.
Nigerians buy petrol cheaper than others
Punch reports that Ukadike said many West African countries do not produce crude oil or have refineries processing crude in local currencies.
The IPMAN scribe said that the Dangote Refinery has helped Nigerians overcome incessant fuel scarcity and long queues at filling stations, asking the Nigerian government to boost the naira to make fuel affordable.
The IPMAN official said that relative to the facilities, amenities, and enabling environment given to Dangote, petrol from his refinery is not cheap enough.
He disclosed that PMS from the plant should be around N770, saying that, adding to the landing, Dangote should sell his petrol far cheaper than the current price.
IPMAN pushes for N750 per litre
Ukadike predicted that if the naira rises to N1,100 per dollar, petrol should be sold below N750 per litre.
He said if the local currency appreciates to N1,200, petrol prices will crash below N750 per litre.
Dangote explains the impact of his refinery
Legit.ng reported that Dangote had said that most Nigerians were unaware that they pay 55% less than other West African countries.
The Nigerian billionaire added that his refinery helped to reduce petrol prices by selling the product between N815 and N820 per litre.
The industrialist disclosed this during a visit to the mega refinery by the President of the Economic Community of West African States (ECOWAS), Omar Touray.
Dangote explained how the refinery has helped Nigeria to reduce the cost of refined petroleum products and production costs across several sectors.
He cited the crash in diesel prices by his refinery from N1,700 per litre to N1,100 and subsequent price adjustments.
Source: UGC
The Kano-born billionaire said the reduction has impacted several sectors, supporting industries, benefiting mining companies, and providing relief to the agricultural sector.
Dangote Refinery emerges top buyer of US crude
Legit.ng earlier reported that the mega Dangote Refinery is increasingly turning to the US for crude oil supplies, following domestic shortfalls.
Experts have described the allocation of 350,000 barrels per day to the refinery by the Nigerian National Petroleum Company Limited (NNPC) to the refinery as a drop in the ocean.
They disclosed that the Domestic Crude Supply Obligation (DCSO) contained in the Petroleum Industry Act (PIA) is not enough for local refiners.
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Source: Legit.ng
