Lagos, Nigeria – Oil marketers are growing increasingly concerned about the delay in announcing the price of Premium Motor Spirit (PMS), also known as petrol, being produced by the Dangote Petroleum Refinery. The landing cost of imported PMS has risen to approximately N1,120/litre, leading dealers to consider importing the commodity due to the government’s open market policy.
The Major Energies Marketers Association of Nigeria revealed in July that the landing cost of PMS was N1,117/litre. Meanwhile, the pump prices of petrol have fluctuated between N600 and N700/litre, with some independent dealers hiking their prices above N1,000/litre.
The delay in the release of the Dangote petrol price has prompted oil marketers to engage in discussions with foreign partners to start importing petrol. The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated that IPMAN is awaiting the price announcement from Dangote before making a decision on importation.
A high price from the Dangote refinery would lead to massive PMS importation, Maigandi warned. He emphasized the benefits of allowing multiple importers, citing guaranteed availability and competition.
An official from the Dangote Group assured that the company’s president, Alhaji Aliko Dangote, is committed to reducing the price of petrol. The official stated that Dangote would sell PMS in Nigeria, regardless of whether the Nigerian National Petroleum Company Limited (NNPC) agrees to be its off-taker or not.
However, the NNPC has stated that it will only purchase Dangote PMS if it is cheaper than the international market price. The NNPC also declared that Dangote and other domestic refineries are free to sell directly to marketers on a willing buyer, willing seller basis.
The stalemate between the NNPC and Dangote refinery has raised concerns about the continued importation of fuel, which costs Nigeria approximately N2 trillion monthly.
