Oil Marketers Propose N550/Litre Petrol Price, Negotiate Deal With Dangote

The President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Migandi Garima, has expressed that Dangote Refinery and oil marketers have intensified efforts at taking final decisions on pricing and delivery of petrol to filling stations nationwide.

While speaking with Vanguard, Garima said, “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.”

Osun Defender reports 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.