Operators in the downstream oil sector have claimed that no one other than the Nigerian National Petroleum Company Limited will purchase Premium Motor Spirit, often known as gasoline, from the Dangote Petroleum Refinery and sell it at the standard pump pricing at filling stations in Nigeria.
The PUNCH said on July 15, 2024, that Alhaji Aliko Dangote, the president of Dangote Industries Limited, had been told that the $20 billion refinery would begin producing gasoline in August 2024, having overcome its problems with crude oil supply with the assistance of NNPC and the federal government.
"Production of gasoline (petrol) is scheduled to start in July, with sales starting in August. In a presentation last month at the factory, Dangote had said, "Annual revenue is projected to exceed $26bn.
However, oil marketers informed our correspondent on Sunday that no Nigerian dealer would be able to purchase gasoline from the Dangote refinery due to the product's international market pricing, which is far more than what it costs at the pump in the country.
Upon being questioned about whether oil marketers had received information regarding the cost of gasoline from the Dangote refinery, Zarma Mustapha, the Deputy National President of the Independent Petroleum Marketers Association of Nigeria, responded negatively.
He did, however, emphasize that PMS from the factory would be sold at the going pricing on the international market, noting that at the moment, no marketer would be willing to pay such a price. They have not yet made any official announcements about the price of gasoline. You should know, though, that no marketer will be able to purchase any product from the Dangote refinery, even if it were to start releasing goods—PMS in particular.
Upon being questioned about whether oil marketers had received information regarding the cost of gasoline from the Dangote refinery, Zarma Mustapha, the Deputy National President of the Independent Petroleum Marketers Association of Nigeria, responded negatively.
He did, however, emphasize that PMS from the factory would be sold at the going pricing on the international market, noting that at the moment, no marketer would be willing to pay such a price. They have not yet made any official announcements about the price of gasoline. You should know, though, that no marketer will be able to purchase any product from the Dangote refinery, even if it were to start releasing goods—PMS in particular.
The refinery must cover its refining costs and add a profit before selling the product because it is a stand-alone commercial entity. The product is currently cheaper in the nation than a liter of PMS is outside.
“So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose
According to information provided by the Major Energies Marketers Association of Nigeria, the landing cost of gasoline was N1,117 per liter as of July 16, 2024, as published by The PUNCH on July 18, 2024. MEMAN revealed this to journalists in a webinar.
Additionally, the organization disclosed that at the time, the cost of landing a liter of diesel was N1,157, while the cost of an ounce of aviation fuel was N1,127.
The landing cost of fuel in Nigeria is N1,117, which is significantly more than the product's pump price. The current price of gasoline at the pump ranges from N660 to N800 a liter, depending on where you buy
Additionally, the organization disclosed that at the time, the cost of landing a liter of diesel was N1,157, while the cost of an ounce of aviation fuel was N1,127.
The landing cost of fuel in Nigeria is N1,117, which is significantly more than the product's pump price. The current price of gasoline at the pump ranges from N660 to N800 a liter, depending on where you buy
When questioned about whether large marketers will be able to purchase gasoline from the Dangote refinery, Clement Isong, the Executive Secretary of MEMAN, responded that his organization had previously released the PMS landing cost and that this was a reasonable price for the product.
"As a business, Dangote Refinery will not want to lose money. You have seen the price we published, which is the realistic cost, and you are aware of the pricing at the pumps today. Thus, that's all I have to say," he said.
"As a business, Dangote Refinery will not want to lose money. You have seen the price we published, which is the realistic cost, and you are aware of the pricing at the pumps today. Thus, that's all I have to say," he said.
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