Petrol Likely to Sell for N600 Per Liter with Dangote Refinery – Marketers Says

Nigeria's oil marketers have projected that the Dangote Refinery could potentially reduce the price of petrol to between N600 and N650 per liter, contingent on its production costs.

As of now, the official petrol price from the Nigerian National Petroleum Company Limited (NNPC) stands at N570 per liter.

However, private depots are selling petrol at a massive higher price of N700 per liter. This discrepancy highlights the volatility and inefficiencies within the current petrol supply chain in Nigeria.

The Dangote Refinery, a $20 billion project, is anticipated to play a crucial role in stabilizing and potentially reducing petrol prices in Nigeria.

Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, stated, "Plus or minus, we hope Dangote can sell between N600 and N650/liter. N600 is still okay. However, it depends on the cost of the production from Dangote’s end."

Despite the optimistic projections, the Dangote Refinery faces huge hurdles. One of the primary challenges is the crude oil supply crisis.

Fashola noted, "Crude oil supply crisis remains a major problem for the Lagos-based refinery." This issue has already led to delays in the commencement of fuel production, which was initially projected for mid-August 2024.

Additionally, there has been a recent dispute between the Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission over the allocation of 26 million barrels of crude oil. This conflict further complicates the refinery's operational timeline and its ability to influence petrol prices positively.