IPMAN Expect Dangote Refinery To Set Petrol Price Between N600 To N650 Per Litre

Abuja, Nigeria– Independent petroleum marketers in Nigeria are hopeful that the new Dangote Petroleum Refinery will price Premium Motor Spirit (PMS), or petrol, between N600 and N650 per litre.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates that, similar to its impact on diesel prices, the refinery will help lower petrol costs.

IPMAN National Vice President Hammed Fashola said on Monday that the $20 billion refinery could reduce fuel prices if it secures adequate support, especially regarding crude supply.

Fashola noted that the Nigerian National Petroleum Company Limited (NNPC) sells PMS to marketers at N570 per litre, but many IPMAN members purchase from private depots at prices exceeding N700.

“We, as marketers, always aim for the best prices. While we currently buy from NNPC, we are ready to switch to Dangote if their prices are competitive. The price will determine our decision,” Fashola said.

He continued, “The official NNPC price is around N570 per litre, but many private depots charge our members N700 or more. We hope Dangote can offer a price between N600 and N650 per litre. N600 would be ideal, but it will depend on Dangote’s production costs. There could be hidden factors in the NNPC pricing, such as subsidies or under-recovery.”

Regarding diesel, Fashola observed that the Dangote refinery initially lowered diesel prices from about N1,600 to N1,000 per litre. Currently, diesel is priced around N1,150 to N1,200 per litre. He hopes the refinery will have a similar effect on petrol, though he acknowledged challenges due to the ongoing crude crisis.

“Even if Dangote buys crude in naira, if it reflects international market prices, the impact might be minimal. We need to be realistic,” Fashola said.

He added that IPMAN is in discussions with refinery officials about a potential partnership and expects to finalize these talks soon.