Dangote refinery: Marketers speak on imminent fuel price reduction

Following the commencement of operations at the Dangote Refinery, oil marketers have responded to the potential reduction in fuel product prices.

The Dangote refinery announced the start of production last Friday and awaits approval from the Federal Government to supply diesel and JetA1 (aviation fuel) in the domestic market.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), expressed optimism that the Dangote refinery’s operations would have a positive impact on the cost of refined products. He noted that the use of crude oil for domestic consumption eliminates the costs of freight and insurance, suggesting a likelihood of lower prices benefiting Nigerians. However, he emphasized the need to await specific details, such as the cost of the received crude oil in terms of currency (naira or dollar).

Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), indicated that the price of Dangote refinery’s petroleum products would be determined once its members commence loading. He highlighted the assurance of product availability and job creation when the refinery starts releasing products.

Clement Isong, Executive Secretary/Chief Executive Officer of the Major Oil Marketers Association of Nigeria (MOMAN), acknowledged the potential savings in freight but emphasized that the primary cost is the raw material, crude oil. Isong expressed skepticism about a significant price drop, stating that a reduction to N400 is unlikely in his opinion.