Petrol price will crash if we lift directly from Dangote refinery —Oil marketers

Oil marketers have assured Nigerians that if they are allowed to lift petrol directly from the Dangote Refinery and Petrochemical Plant, the price of Premium Motor Spirit (PMS), also known as petrol, will fall dramatically.

During a press briefing where the NNPC-Dangote refinery petrol supply deal was announced, Wale Edun, the minister of finance and coordinating minister of the economy disclosed that the Dangote Refinery will only sell to NNPC Ltd.

“From October 1, NNPC Ltd. will commence the supply of about 385,000 bpd of crude oil to the Dangote refinery, to be paid for in naira,” he said.

“PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

Reacting to this, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike while appearing as a guest on Channels Television’s Morning Brief on Tuesday, said marketers are now in discussion with the refinery for a possible direct lifting of petrol.

He said, “It is just very simple. It shows that the liberalization of the market is on course, because there is no way Dangote refinery will be producing petrol in Nigeria without considering IPMAN as one of its strategic stakeholders.
We were even thinking that one of his first points of call was to discuss with IPMAN and not NNPCL, because we can distribute every single drop of products produced by Dangote refinery because we are situated in every nook and cranny of this country. We also possess about 85 per cent of filling stations in Nigeria.

“But if IPMAN becomes independent, prices will drop. Because it will give us the opportunity for possible competition because we will no longer be depending on another source to get products.

Dangote also opened up to IPMAN when he started producing AGO, diesel. We entered the market and started buying it, and prices of AGO came down. it was around N1600, now it is between N1000 to N1100.

“This is a deregulated economy, and every stakeholder and player should be given equal opportunity.”