Dangote refinery may lower price of petrol to between 600 and 650 naira- Marketers

Nigerian oil traders said the Dangote refinery could lower the price of petrol to between 600 and 650 naira per liter depending on its production cost.

The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, disclosed this in a statement on Monday.

His comment comes amid indications that the $20 billion refinery will no longer start producing fuel by mid-August 2024, contrary to predictions by Dangote Group chairman Aliko Dangote.

Speaking on the development, Fashola said the crude oil supply crisis remains a major problem for the Lagos refinery.

According to him, the official price of petrol from the Nigerian National Petroleum Company Limited was N570 per litre, while private depots sell it at N700 per litre. However, he insisted that when Dangote fuel is available, the pump price may drop to N600 or N650 per litre.

“The official NNPC price is about N570 per litre, but third parties, private depots, sell PMS to most of our members at N700 and above.

“More or less, we hope that Dangote can be sold between N600 and N650 per litre. N600 is still good. However, it depends on the cost of production on Dangote’s part,” he said.

Recall that last week, the Dangote Refinery and the upstream Nigerian Petroleum Regulatory Commission engaged in a war of words over the distribution of 26 million barrels of crude oil.