Marketers Expect Cheap Fuel as Dangote Refinery Finally Moves to Sell ProductsÂ
“Dangote Refinery is poised to commence supplying petroleum marketers, most likely starting next week. This development coincides with the Nigerian National Petroleum Company Limited (NNPCL) resuming the sale of Premium Motor Spirit (PMS) to Independent Marketers. Marketers are anticipating that Dangote will sell diesel for less than the ex-depot price of N1,550.
There are indications that by next week, the Dangote refinery may begin selling petroleum products, particularly diesel, to regional distributors. This development follows a report that the Nigerian National Petroleum Company Limited (NNPCL) has recently resumed selling Premium Motor Spirit (PMS) directly to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The Guardian reported that although IPMAN currently purchases petrol from NNPCL at the ex-depot price of roughly N600 per litre, the marketers have stated that a deal has been made to lift approximately 20 million litres of diesel from the refinery each week.
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While pricing is still pending, indications suggest the product will sell for less than the current ex-depot or wholesale price of N1,550 per litre.
Regarding how products will be supplied, IPMAN President Abubakar Skettima-Garima told The Guardian that the marketers had previously purchased PMS from private marketers at a premium price before NNPCL began supplying them.
The products from the Dangote refinery are expected to be supplied directly to the marketers from the refinery located in Lekki.
Shettima-Garima pointed out that if the development is maintained, the marketers may be able to sell their products for as little as N617 per litre in Abuja, while private marketers may charge as much as N670 or less in places like Lagos.
He said: ‘This is something new because we bought the product at the ex-depot price of N640 per litre from a private depot. Now, NNPCL is selling to us at N600 per litre. The difference of N40 is significant.’
He said private depot owners would have to lower their pricing as soon as they discovered that marketers could obtain the supplies straight from the NNPCL. Shettima-Garima pleaded with the national corporation to continue the supply, emphasising that the move would impact residents of the state, who typically pay more for gas.
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Despite widespread rumours that the NNPCL had lowered the retail pump price for PMS, the product stayed the same at most of the company’s Abuja retail locations, where it sold for N617 per litre and N670 at most private stations.
According to the head of IPMAN, although diesel is currently around N1,700 per litre, marketers anticipate that Dangote will sell for less than the ex-depot price of N1,550, which would help the nation set new records for lower prices. Dangote Refinery finally set a date to sell fuel.”
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