Oil marketers await Dangote petrol price amid import concerns

Oil marketers have expressed concern over the delay in announcing the price of Premium Motor Spirit (PMS), also known as petrol, from the Dangote Petroleum Refinery.

They warn that if the price is too high, it could lead to a resurgence of petrol imports, as the government has opened the market for competition.

The landing cost of imported PMS has reportedly surged to around N1,120 per litre, up from N1,117 in July.

Recent increases in petrol pump prices, which now range between N855 and N897 per litre, have further pressured the market, with some independent dealers charging over N1,000 per litre.

Amid this uncertainty, the Independent Petroleum Marketers Association of Nigeria (IPMAN) is in talks with foreign partners to potentially resume imports if the Dangote refinery’s price is uncompetitive.

IPMAN President Abubakar Maigandi emphasized that competition in the market would ensure availability and potentially better prices.

Meanwhile, an official from the Dangote Group hinted that the refinery, led by Alhaji Aliko Dangote, is prepared to offer competitive prices, regardless of the Nigerian National Petroleum Company Limited’s (NNPC) position on being its off-taker.

Negotiations between NNPC and Dangote refinery appear stalled, with NNPC stating it will only buy from the refinery if its price is lower than international rates.

This impasse raises concerns that NNPC may continue importing petrol, particularly as its refineries remain non-operational.