The long-awaited commencement of operations at the Dangote Refinery has raised expectations of a reduction in fuel prices, with industry experts weighing in on the potential implications.

The Dangote Refinery made a landmark announcement last Friday, signaling the start of production. The company is now awaiting government approval to supply diesel and JetA1 (aviation fuel) within the domestic market.

In response to this pivotal development, industry figures have expressed their opinions regarding the potential effects on fuel prices.

President of Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, emphasized the positive impact of the refinery’s commencement on the cost of refined products. He highlighted the removal of freight and insurance costs due to the utilization of crude oil reserved for domestic consumption. Gillis-Harry conveyed optimism about potential price reductions, acknowledging that specifics regarding pricing await clarification.

Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), indicated that the pricing of Dangote refinery’s petroleum products would be determined once their members initiate product loading. He emphasized the assurance of product availability, potential eradication of scarcity, and the creation of employment opportunities upon the commencement of product release.

Echoing similar sentiments, Clement Isong, the Executive Secretary/Chief Executive Officer of Major Oil Marketers Association of Nigeria (MOMAN), offered a balanced perspective. Isong acknowledged the likelihood of savings in freight but emphasized that the major cost component lies in the crude oil itself, tempering expectations of a significant price drop.

The anticipation surrounding the Dangote Refinery’s impact on fuel pricing underscores the importance of this development within the Nigerian energy sector. As the nation eagerly awaits further delineation of the refinery’s influence, industry stakeholders are poised to navigate the potential shifts in pricing dynamics, anticipating a direct and substantial impact on consumers.