As the Dangote Refinery prepares to commence operations in May 2024, oil marketers are intensifying efforts to meet with the company's management to finalize decisions on pricing and delivery of petrol to filling stations nationwide. The refinery, with a capacity to refine 650,000 barrels per day (bpd) of crude oil, aims to begin production and distribution of petrol, a significant portion of which is currently imported into Nigeria.
According to the Independent Petroleum Marketers Association of Nigeria, officials from Dangote Refinery, oil marketers, transporters, insurers, and stakeholders have been engaging in discussions on pricing, distribution, and margins. Depot owners currently purchase petroleum from NNPC Limited at N556 per litre and sell to independents at N640 per litre, but the marketers have proposed a price of N550 per litre to the management of Dangote Refinery.
Alhaji Abubakar Migandi Garima, the President of IPMAN, stated, "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." He emphasized that the locally refined petrol is expected to be cheaper than imported petrol, mainly due to the local availability of crude oil and the elimination of transportation costs.
Professor Wumi Iledare, Executive Director of the Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and Policy Advocacy, explained that the price of petroleum is primarily linked to the acquisition cost of crude oil. He expressed optimism that the price of petrol in Nigeria could be lower when Dangote Refinery operates at full capacity, provided other factors remain constant.
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