Nigeria’s oil marketers have suggested that petrol prices might fall to between N600 and N650 per liter once the Dangote Refinery begins operations, depending on production costs.
Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, shared this insight in a statement on Monday.
His remarks follow recent reports that the $20 billion refinery might not start fuel production in mid-August 2024 as previously anticipated by Dangote Group’s president, Aliko Dangote.
Fashola highlighted that a shortage in crude oil supply remains a significant challenge for the Lagos-based refinery.
He noted that the current official petrol price from the Nigerian National Petroleum Company Limited (NNPC) is N570 per liter, while private depots are selling it for around N700 per liter.
He expressed hope that once the Dangote Refinery starts supplying fuel, prices could potentially drop to between N600 and N650 per liter, depending on production costs.
Fashola added, “The official rate from NNPC is about N570 per liter, but private depots are charging N700 or more. We are optimistic that Dangote’s price could be around N600 or N650 per liter. The final price will depend on their production costs.”
Recently, there has been a dispute between the Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission concerning the allocation of 26 million barrels of crude oil.
