Oil marketers are anticipating a final decision from the management of the $20 billion Dangote Refinery regarding the direct lifting of its Petroleum Motor Spirit (PMS). This follows ongoing discussions aimed at reducing the cost of petrol in Nigeria.
Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), provided an update during a press briefing on Monday. He confirmed that talks with the Dangote Refinery have begun, with the goal of allowing IPMAN members to lift petrol directly from the refinery.
The direct lifting arrangement is expected to lower the current pump prices of petrol, which range between N950 and N1,100 per litre across various outlets. Maigandi emphasised that feedback from the refinery is expected this week. “We are still in talks with Dangote Refinery for direct lifting of its petrol. We hope to hear the outcome of the discussions within the week,” he stated.
On September 15, 2024, the Nigerian National Petroleum Company Limited (NNPCL) became the first entity to lift petrol from Dangote Refinery, leading to an increase in the fuel price to N950 and N1,100 per litre at its retail stations. NNPCL revealed that it purchased the petrol at N898 per litre, although the Dangote Group disputed this figure without disclosing the actual price.
Aliko Dangote, President of Dangote Group, mentioned in a recent interview with Bloomberg Television that the refinery’s petrol is 15% cheaper than imported alternatives, highlighting its competitive advantage.
In another development, the House of Representatives has urged Dangote Refinery to disclose its petrol price and begin direct sales to oil marketers, further strengthening the Naira-for-crude initiative.