As NNPC Limited moves to end petrol scarcity in Lagos and its surrounding areas, Dangote Refinery and oil marketers are stepping up efforts to finalize decisions regarding pricing and distribution of petrol to filling stations nationwide. With a refining capacity of 650,000 barrels per day, Dangote Refinery aims to begin production and distribution in May 2024, aiming to reduce the reliance on imported petrol.
Discussions between Dangote Refinery and stakeholders, including independent marketers, are ongoing, focusing on pricing, distribution logistics, and margins for all involved parties, such as transporters and insurers. Currently, depot owners purchase petrol from NNPC Limited at N556 per litre and sell it to independents at N640 per litre. Independent marketers have proposed a price of N550 per litre to Dangote Refinery, awaiting a final decision.
The President of IPMAN, Alhaji Abubakar Migandi Garima, confirmed the ongoing negotiations and highlighted the potential variation in petrol prices across Nigeria due to differences in transportation costs and distances. He anticipates that locally refined petrol will be cheaper than imported ones, mainly due to the availability of domestic crude oil and reduced transportation expenses.
Professor Wumi Iledare of the Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and Policy Advocacy sees the Dangote Refinery as an opportunity for cheaper petrol prices for Nigerians in the future, contingent upon various factors such as crude oil acquisition costs.
The impending availability of locally refined petrol is welcomed by motorists, hopeful that it will lead to reduced prices and alleviate the financial burden associated with fuel costs. Moreover, the President of CORAN, Mr. Momoh Oyarekhua, emphasizes the benefits of reducing dependence on imported petrol, conserving foreign exchange, and generating employment opportunities.
To further support the development of indigenous refinery projects, stakeholders propose the creation of a $1 billion fund to aid local investors. This initiative, if realized, could mitigate funding challenges and bolster the growth of the oil and gas industry and the national economy.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, underscores the potential positive impact of leveraging Dangote Refinery to reduce the country’s consumption of imported products, thereby alleviating foreign exchange pressures and benefiting various sectors of the economy.
