According to Oil industry experts, no oil marketer in Nigeria is expected to purchase Premium Motor Spirit (PMS), commonly known as petrol from the Dangote Petroleum Refinery at the current market pump prices.
This assertion follows the announcement by Alhaji Aliko Dangote, President of Dangote Industries Limited, that the $20 billion refinery is set to commence petrol production in August 2024 after resolving its crude oil supply issues with the assistance of the Nigerian National Petroleum Company Limited (NNPC) and the Federal Government.
Dangote stated that gasoline production would begin in July, with an annual revenue projection exceeding $26 billion.
However, oil marketers have expressed skepticism regarding their ability to buy petrol from the Dangote refinery, as it is anticipated that the pricing will align with international market rates, significantly higher than the current domestic prices at filling stations.
Zarma Mustapha, Deputy National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), indicated that there has been no official communication regarding the pricing of petrol from the Dangote refinery.
He emphasized that due to the refinery's independent commercial nature, it would need to recover its refining costs and add a profit margin before selling the product.
Currently, domestic pump prices range between N660 and N800 per litre, while the expected price from the refinery could lead to losses for marketers if they were to sell at the prevailing rates.
Mustapha further noted that for the Dangote petrol to be available across Nigeria's filling stations, the NNPC would likely need to intervene by purchasing the product and reselling it to marketers at discounted rates, similar to its current import practices.
He asserted that without such intervention, marketers would be unable to sustain operations if required to sell at a loss of N400 to N500 per litre.
