Concerns about the delay in announcing the price of PMS produced by the Dangote Petroleum Refinery have been raised by the oil marketers.
The national president of IPMAN, Abubakar Maigandi, stated that marketers will continue to import petrol into the nation if the price from the Dangote Refinery exceeds the landing cost of imported PMS, which is currently estimated to be around N1,120 per litre.
“We will look into how to bring in the product if the landing cost is less than what the Dangote Refinery will sell,” Maigandi said to PUNCH.
Since the market is now open, we are going to buy products from anywhere we can find them for a cheaper price but with the same quality. Though the cost of Dangote PMS is undetermined at this time, we are talking with our international
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Maigandi emphasised that allowing multiple importers ensures competition and availability in the market. Once everybody is allowed to bring in the product, there will be enough competition, and this will drive prices down. Importers will try to sell their stock and replenish it to stay profitable.”
The group President of Dangote Industries Limited (DIL), Aliko Dangote, had, during the official rollout of petroleum products from the 650,000 barrels per day refinery, disclosed that the company is waiting for the NNPCL on pricing.
According to the billionaire businessman, there is an arrangement on pricing, designed and approved by the President Bola Tinubu-led Federal Executives Council (FEC). He added that once that is finalised, the products from the refinery will hit the market through the NNPCL as the sole buyer from the refinery.
However, the spokesperson of the NNPCL, Olufemi Soneye, said the nation’s oil company will only purchase Dangote’s petrol if it is cheaper than international alternatives.
“The NNPC Ltd will only fully off-take PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria,” Soneye stated.
He also emphasised that the NNPC is not mandated to serve as the sole distributor for domestic refineries, reinforcing a free market system for marketers. Maigandi emphasised that allowing multiple importers ensures competition and availability in the market.
“Once everybody is allowed to bring in the product, there will be enough competition, and this will drive prices down. Importers will try to sell their stock and replenish it to stay profitable.
During the official launch of petroleum products from the refinery producing 650,000 barrels of oil per day, Dangote Industries Limited (DIL) group president Aliko Dangote revealed that the company is awaiting pricing from the NNPCL.
The billionaire businessman states that the Federal Executives Council (FEC), under by President Bola Tinubu, has allowed and designed a pricing mechanism. The NNPCL will be the refinery’s only buyer, he continued, and once that is finalized, the goods will be released onto the market.
Olufemi Soneye, the spokesperson for the NNPCL, claimed that the country’s oil firm will only buy Dangote’s petrol if it is a cheaper option than foreign substitutes.The Dangote Refinery PMS will only be fully offtaken by NNPC Ltd. if the market.
He also emphasised that the NNPC is not mandated to serve as the sole distributor for domestic refineries, reinforcing a free market system for marketers.
