The Dangote refinery is scheduled to meet with the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Tuesday to address a key issue that has drawn the attention of concerned Nigerians.
The discussions will focus on the potential for lowering Dangote’s fuel prices compared to the current market rates across the country.
Both IPMAN and the Dangote refinery are expected to finalize agreements regarding the cost of lifting petrol from the refinery, with IPMAN expressing optimism that this could help stabilize and improve the efficiency of Nigeria’s fuel supply chain.
This follows the government’s decision to allow Dangote refinery and marketers the flexibility to set their own fuel prices.
Just last week, the Nigerian National Petroleum Company Limited (NNPC) withdrew from managing the operations of the Dangote refinery, enabling market forces to influence fuel pricing.
According to Punch newspaper, IPMAN’s National Publicity Secretary, Chinedu Ukadike, provided an update on Sunday, stating that IPMAN is eager to establish a positive working relationship with the Dangote refinery and is seeking a meeting with the refinery’s executives for further discussions.
“We hope to sit down with Dangote maybe Tuesday or Wednesday and if they give us a template or price, we will move to Dangote. I want to reassure you that we have all it takes to off-take whatever Dangote will give to us. I don’t know why they are dragging their legs to discuss with marketers, maybe it is politics,” the publicity secretary stated.
“The more we take action in terms of distribution lines, the price will come down, we are not afraid of this competition, we have organized ourselves and are ready to compete because this is the survival of the fittest,” he added.
Petrol pricing
In response to a question about the future price of petrol, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), suggested that the price could decrease to N700.
At present, petrol prices in Nigeria range between N1000 and N1500, following a recent spike in costs.
“The price can be knocked down to N700/litre; it depends on the volatility of the market and this does not always mean upward prices, it could also mean prices coming down,” the PETROAN boss stated.
“If we have massive supply and there are a lot of products in Nigeria, obviously everybody will be looking for just minimal profit. Our business is focused on turnover, so people may cut prices down,” he added.
Last week, it was reported that fuel stations owned by independent marketers were adjusting their prices, with many crossing the N1,000 per litre threshold.
In the country’s capital; Abuja, the petrol pump price rose to N1,030 per litre at various NNPC outlets, while in the commercial center Lagos, the price increased to N998 per litre.