No oil marketer goes to purchase Premium Motor Spirit, popularly known as petrol, from the Dangote Petroleum Refinery and promote on the prevalent pump costs at filling stations in Nigeria besides the Nigerian Nationwide Petroleum Firm Restricted, operators within the downstream oil sector have declared.
On July 15, 2024, The PUNCH reported that the President of Dangote Industries Restricted, Alhaji Aliko Dangote, introduced that the $20bn refinery was set to roll out its petrol in August 2024, having resolved its crude oil provide points by means of the assistance of NNPC and the Federal Authorities.
“Gasoline (petrol) manufacturing is to begin in July with gross sales from August. Annual income is projected to exceed $26bn,” Dangote had acknowledged whereas delivering a presentation on the plant final month.
However oil entrepreneurs advised our correspondent on Sunday that no seller in Nigeria would have the ability to purchase the petrol from the Dangote refinery, as a result of the product can be priced on the worldwide market charge, far greater than the home value on the pumps.
When contacted and requested whether or not oil entrepreneurs had been briefed concerning the worth of petrol from the Dangote refinery, the Deputy Nationwide President of the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria, Zarma Mustapha, gave a adverse reply.
He, nevertheless, pressured that PMS from the plant can be bought on the worldwide market charge, including that no marketer would wish to pay such worth presently.
“There was no official communication from them but on pricing for petrol. Nonetheless, one factor I need you to grasp is that even when the Dangote refinery begins to launch merchandise, notably PMS, no marketer can have the ability to purchase the product from him.
“It’s because the refinery is an unbiased business entity they usually should recoup their value of refining and add some margin earlier than they promote out the product. The present worth of the product inside the nation is beneath the worldwide worth of a litre of PMS.
“So you can’t purchase the product from the refinery on the worldwide worth after which promote it on the prevailing worth on the stores. For those who do, you will lose an enormous amount of cash, which is a distinction of between N400 and N500/litre,” Mustapha acknowledged.
The IPMAN official, nevertheless, famous that for Nigeria to have Dangote petrol throughout its filling stations, the NNPC must intervene by buying the product and reselling it to sellers at discounted charges.
“NNPC might need to offtake the product, identical to they’re importing from different nations for upward provide to Nigerian entrepreneurs, I feel solely the nationwide oil firm can offtake PMS from them and understand how greatest they’ll proceed to produce it to entrepreneurs to promote on the authorized present worth.
“If it’s not carried out this fashion, no marketer will have the ability to purchase the product and promote it at a lack of over N400 to N500/litre. It’s not potential” Mustapha acknowledged.
On July 18, 2024, The PUNCH reported that the touchdown value of petrol was N1,117/litre as of July 16, 2024, based on knowledge launched by the Main Energies Entrepreneurs Affiliation of Nigeria. MEMAN disclosed this throughout a webinar with journalists.
The affiliation had additionally revealed that the touchdown value of diesel was N1,157/litre, whereas that of aviation gas was N1,127/litre, on the time.
The N1,117 touchdown value of petrol is much above the pump worth of the product in Nigeria. At present, the pump worth of petrol is between N660/litre and N800/litre, relying on the realm of buy.
When contacted and requested whether or not main entrepreneurs would have the ability to purchase petrol from the Dangote refinery, the Government Secretary, MEMAN, Clement Isong, mentioned his group had earlier revealed the touchdown value of PMS, including that this was the lifelike value of the product.
“You have got seen the value we revealed which is the lifelike value, and the price on the pumps in the present day, and Dangote refinery is a enterprise entity that won’t wish to make losses. So that’s all I’ll say,” he acknowledged.
NNPC is presently the only real importer of petrol into Nigeria. Different entrepreneurs stopped importing the product resulting from their incapacity to entry the US greenback required for PMS imports. NNPC had but to answer enquiries on the matter when contacted, up until when this report was filed.