According to Nigerian oil marketers, the Dangote Refinery might cause the price of gasoline to plummet to N600–N650 per liter, contingent upon its production expenses.
This information was released in a statement on Monday by Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria.
His remarks coincide with hints that, in contrast to Aliko Dangote, president of the Dangote Group, the $20 billion refinery is not going to start producing fuel in mid-August 2024.
Speaking about the development, Fashola stated that the refinery located in Lagos is still facing a significant issue with the supply of crude oil.
He claimed that whereas private stores sell gasoline for N700 per liter, the Nigerian National Petroleum Company Limited’s official price was N570.
He did, however, emphasize that the pump price might plummet to N600 or N650 per liter once Dangote’s petroleum is introduced.
The majority of our members purchase PMS from third parties, private depots, for N700 and more per liter, although the NNPC’s official price is approximately N570.
We anticipate that Dangote will sell between N600 and N650 per liter, plus or less. N600 is still functioning properly. That is contingent upon Dangote’s production costs, he clarified.
Remember how the Nigerian Upstream Petroleum Regulatory Commission and the Dangote Refinery sparred verbally over 26 million barrels of allocated crude oil last week?