Dangote refinery: Marketers speak on imminent fuel price reduction

Following the Dangote Refinery’s opening, oil marketers have responded to the impending drop in gasoline product prices.

According to ZINGTIE, the Dangote refinery announced last Friday about the start of production.

The corporation stated that it is awaiting permission from the federal government to supply aviation fuel, such as JetA1 and diesel, to the entire domestic market.

Billy Gillis-Harry, President of PETROAN (Petroleum Products Retail Outlets Owners Association), responded by stating that the Dangote refinery’s start-up would have a good effect on refined product costs.

“However, the fact that the crude oil being used is the one for domestic consumption takes away the cost of freight and insurance from the total cost. So, if that has been removed, there is a likelihood that prices will be impacted positively to the benefit of Nigerians.

“But what exactly will be the price is to be awaited and worked out because, for instance, we don’t know how much he received the crude oil, whether it is in naira or dollar, and that is business information that sometimes is difficult to release.”

“Regardless of the situation, we should still expect a reprieve; some advantages should come to us. So that is my thinking”.

Additionally, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, suggested that the price would be announced as soon as his organization’s members start loading petroleum products into the Dangote plant.

“It is when we start loading that he can give us the price, and then we will know how much to sell”, Maigandi stated.

“Immediately he starts releasing products, we are assured of the availability of products, and there will be no more scarcity, provided that he is producing. Also, it will create employment opportunities.”

Meanwhile, Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, MOMAN, Clement Isong, said, “I’ve heard some people say there will be savings in freight; that might be true. But that is a tiny part of the cost. The major part of the cost is the raw material, which is the crude oil; even the refining cost is quite small. I don’t expect a significant price drop, definitely not N400; that’s very unlikely, in my opinion.”

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