Petrol Prices Set to Drop as Oil Marketers Seal Deal with Dangote Refinery
Nigeria is on the cusp of a significant development in its oil industry, as oil marketers have assured the public that petrol prices will plummet once they start lifting products directly from the Dangote Refinery. This promise comes on the heels of a recent surge in prices, with petrol costs reaching as high as ₦950 per litre in Lagos and ₦1000 per litre in the north.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) Spokesperson, Chinedu Ukadike, made the announcement during an appearance on Channels Television’s Morning Brief on Tuesday. According to Ukadike, the marketers are in discussions with the refinery to secure a direct lifting arrangement, which will eliminate the current price disparity.
"This is a deregulated economy, and every stakeholder and player should be given equal opportunity," Ukadike emphasized. "Dangote refinery will produce petrol, and we, as independent marketers, will distribute it. This will give us the opportunity for possible competition, and prices will drop."
Ukadike pointed out that the refinery’s decision to produce petrol without consulting IPMAN initially led to the current price disparity. However, he believes that a direct lifting arrangement will ensure that prices are more competitive. "We were thinking that one of Dangote’s first points of call was to discuss with IPMAN and not NNPCL, because we can distribute every single drop of products produced by Dangote refinery," Ukadike explained.
In a related development, the spokesperson highlighted the success of a similar arrangement with the refinery’s AGO, diesel production. "When Dangote started producing AGO, diesel, we entered the market and started buying it. And prices of AGO came down from around N1600 to between N1000 to N1100," Ukadike recalled.
The development is seen as a major breakthrough in the Nigerian oil industry, as it promises to increase competition and reduce prices. With the direct lifting arrangement, oil marketers will be able to distribute petrol without relying on intermediaries, leading to a more competitive market. As a result, Nigerians can expect to see a significant drop in petrol prices in the coming weeks.
