The delay in announcing the price of Premium Motor Spirit (PMS) produced by the Dangote Petroleum Refinery has raised concerns among oil marketers. The landing cost of imported PMS is now around N1,120/litre, and marketers fear that a high price from the Dangote refinery could lead to increased importation.
The Major Energies Marketers Association of Nigeria revealed that the landing cost of PMS was N1,117/litre in July, while the pump price ranged between N600 and N700/litre. However, the price was increased last week to between N855 and N897/litre by the Nigerian National Petroleum Company Limited (NNPC), with some independent dealers hiking their prices above N1,000/litre.
The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated that IPMAN is discussing with foreign partners to import PMS, awaiting the Dangote petrol price announcement. He noted that a high cost from Dangote would lead to massive PMS importation.
A Dangote Group official said that Alhaji Aliko Dangote is committed to beating down the price of petrol and will sell PMS in Nigeria regardless of NNPC’s agreement. The official recalled how the refinery reduced the price of diesel from N1,600 to N950.
The NNPC has yet to agree on the modalities for the sale of Dangote’s PMS, stating that it will only buy 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 delay in the announcement has raised concerns about the continued importation of fuel, which gulps N2tn every month, until the government refineries are fixed.
