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AS the Nigerian National Petroleum Company, NNPC Limited, moves to end petrol scarcity in Lagos and its environs, Dangote Refinery and oil marketers have intensified efforts at taking final decisions on pricing and delivery of petrol to filling stations nationwide.

Dangote Refinery, which can refine 650,000 barrels per day, bpd of crude oil, intends to commence production and distribution of the product, the bulk of which is currently imported from the global market, in May 2024.

Checks by Vanguard, weekend, indicated that the parties have been meeting and exchanging notes on the pricing, distribution and margins to stakeholders in the value chain, including transporters and insurers.

Recall that depot owners buy the product from NNPC Limited at N556 per litre and sell to independents at N640 per litre.
It was, however learnt that independent markers have proposed N550 per litre to management of Dangote Refinery who is currenty in a discussion with them.

We have proposed N550 per litre — Marketers

The President of Independent Petroleum Marketers Association of Nigeria, IPMAN, Alhaji Abubakar Migandi Garima, who confirmed the development yesterday, said: “We have been discussing with Dangote Refinery. The discussion, centering on pricing, margins and other issues, is still ongoing.

“We have proposed that the lifting price should be N550 per litre in Lagos. The price of the product will differ from one part of Nigeria to another because of distance and cost of delivering petrol to different locations.

"We are currently waiting on Dangote Refinery to conclude and communicate the price per litre, so we can plan to lift the product when it comes on stream.

‘’We expect that the price of the locally refined petrol would be cheaper than imported petrol, due mainly to local availability of the bulk of its crude oil and removal of transportation cost.”

Let’s enjoy benefit of domestic refining — Experts, consumers

Similarly, Executive Director, Emmanuel Egbogah Foundation for Petroleum and Energy Industry Economics and Policy Advocacy, Professor Wumi Iledare, said the coming on stream of Dangote Refinery presented an opportunity for Nigerians to enjoy cheaper prices of petrol now or later.

He said: “The price of petroleum is majorly correlated with the acquisition cost of crude oil. The cost of running the refinery and opportunity cost of capital contribute marginally. Distribution and retailing costs are important but the crude cost matter the most.

"Thus, low price of petrol in Nigeria when Dangote Refinery operates at full capacity, is a possibility indeed, ceteris paribus.”

A motorist, who pleaded anonymity, said: “Most people have stopped driving every day. That is why we do not experience much traffic in the cities, including Lagos anymore. I am pleased that the Dangote Refinery will soon supply petrol. We hope and pray that it will be cheaper than the imported product.”

FG should float $1bn fund to complete new refineries — Refinery owners

However, President of Crude Oil Refinery-owners Association of Nigeria, CORAN, Mr. Momoh Oyarekhua, said: “ The coming on stream of Dangote Refinery is a very good development, especially as it would reduce huge dependence on imported petrol, conserve foreign exchange and create additional jobs.

"The government needs to support the construction of other indigenous refinery projects, currently at different stages nationwide. We have proposed the creation of $1 billion fund to support local investors.

‘’If this is done, lack of funds, which has always been a major challenge, would to some extent be addressed.

“The federal government and other stakeholders, including the Nigerian Midstream, Downstream Petroleum Regulatory Authority, NMDPRA, should engage with indigenous investors to explore the best ways and means of bringing this into reality in the best interest of oil and gas industry and the nation’s economy.”

We expect sector wide impact – CPPE

Also, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said: “If we are able to take advantage of Dangote refinery to reduce our consuming products, it will go a long way in easing the country’s foreign exchange crisis. However, it would also make positive impact across all sectors.”

It’s premature for our reaction—NLC

Asked to react to the development yesterday, an official of the Nigeria Labour Congress, NLC, who chose to remain anonymous, said it was premature for comments, saying “how can we react to speculations? When we see what they have done, then, we can say something. For now, we think it is premature.”

NNPC Ltd moves to end shortage

On the current scarcity of fuel in some parts of Lagos and its environs, the Chief Corporate Communications Officer, NNPC Limited, Olufemi Soneye, stated: “The NNPC Limited wishes to inform the general public that the tightness in Premium Motor Spirit, PMS, supply witnessed in some filling stations in Lagos was a result of an issue in one of the depots in the area.

"The NNPC Retail Limited, our retail arm, has since resolved the issue and effective tomorrow (today), normalcy will be restored within the affected area.

“NNPC Limited calls on motorists in Lagos to avoid panic buying of PMS as all hands are on deck to sustain sufficiency in the supply of petroleum products in the area.”

https://www.vanguardngr.com/2024/04/petrol-oil-marketers-propose-n550-litre-price-to-dangote/amp/

Proposed ke, let him sell at what is profitable to him and his company... Buy Nigeria products you na go dey do shakara ... Glo crash MTN .. Air Peace don crash that yeye Proposed National carriers price ..Messr Dangote Refinery don crash Diesel price ...Buy made in Nigeria products... Nigeria products don't bite your pocket ...

Toh

..hj

Glory be to God

After commissioning this refinery last year during Buhari's regime, it is one rhetoric or the other we keep hearing without anything to show.

If 550 is what they are proposing to Dangote, then it means that there wont be much difference in price at all.

Lol..let us view this with common sense. Tinubu said he increased Nigeria oil production to 1.5m bpd. Nigerian oil, Venezuela etc is known as sweet crude and one of the best in the world. The aim of dangote building a refinery was to receive crude from Niger delta, refine it and make fuel, kerosene and diesel cheaper than imported ones and save Nigeria trillions of naira in loss to petroleum importation. Why would same dangote now need a large chunk of the country’s foreign exchange to import petroleum products from overseas at rates subsidized by FG for a completed refinery, similar to what petroleum marketers have done in the past more than 20 years?

Babangidapikin:
Proposed ke, let him sell at what is profitable to him and his company... Buy Nigeria products you na go dey do shakara ... Glo crash MTN .. Air Peace don crash that yeye Proposed National carriers price ..Messr Dangote Refinery don crash Diesel price ...Buy made in Nigeria products... Nigeria products don't bite your pocket ...

We need more people of your mentality as Nigerians. We need to patronize our own to fight this dollar

The government told us, if dangote refinery comes on board prices will crash massively, what is now the difference in price of petrol

Why proposing or dictating price to him? They should allow him to sell at a reasonable price. Nigeria should make crude oil available to the refinery.

samomoli:
The government told us, if dangote refinery comes on board prices will crash massively, what is now the difference in price of petrol

"Propaganda does not deceive the people; it merely helps the APC, Tinubu, those working with him, their supporters, Agbadorians, and Bulabans to continue to deceive themselves."

Just flood the market
Like airpeace
Water go find im level

Haba, N550 is too much na. NNPC in Lagos is currently selling at N568 so what's the difference between N550 and N568. Barely N18.

They should propose from N400 and below. Anything outside that would not really make any difference.

Kokadomfreedom:
After commissioning this refinery last year during Buhari's regime, it is one rhetoric or the other we keep hearing without anything to show.

Without anything to show how? Lol
Diesel was released last week.
Same for jet Fuel.
People wen no want nigeria to work really plenty o. God abeg.

They don't allow the forces of demand and supply to determine prices anymore in Nigeria, anybody can just wake up and fix prices as he or she wants and Nigerians will still suffer under the system without the govt or labour unions doing anything about the situation

See cabal proposing price

Na 300 to a liter

I know someone working at the Dangote refinery, and he said the refinery will start working in 2026

Kuginzi:
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https://www.vanguardngr.com/2024/04/petrol-oil-marketers-propose-n550-litre-price-to-dangote/amp/

How is it that buyers tell the seller how much the product should sell.

Did these buyers tell him how much he should pay for refinery construction

Customers dey tell trader how much to sell em goods.

Why is Dangote not helping Nigeria drive down the price of petrol & diesel just like Allen Onyema of Air peace is doing in the Aviation sector.
Pls Aliko Dangote help Nigerians by dropping the price to at least 300 Naira for petrol & 700 for diesel.
Thank you

Kuginzi:
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https://www.vanguardngr.com/2024/04/petrol-oil-marketers-propose-n550-litre-price-to-dangote/amp/

propose here and there, make we see the fuel first

Noted.

Dangote go look them, laugh...

In his words, he will say... 'shey u de whine me ni'

Until fuel comes down to N87, no APC govt is worthy of recognition

I’m just tired of waiting

Give license to Modular Refinery and regulate it. Then watch petrol flood the market and the price will naturally come down. Everything no be rocket science nah

It is not the seller that is to propose? Evil nation, evil leaders

rinzaugustine:
Lol..let us view this with common sense. Tinubu said he increased Nigeria oil production to 1.5m bpd. Nigerian oil, Venezuela etc is known as sweet crude and one of the best in the world. The aim of dangote building a refinery was to receive crude from Niger delta, refine it and make fuel, kerosene and diesel cheaper than imported ones and save Nigeria trillions of naira in loss to petroleum importation. Why would same dangote now need a large chunk of the country’s foreign exchange to import petroleum products from overseas at rates subsidized by FG for a completed refinery, similar to what petroleum marketers have done in the past more than 20 years?

Zonebs are not ready to think like u

I thought Ronus and YolobaMuslims said fuel will come back to N180 by the time Dangote comes on stream, which one is negotiating with him for N550
Propaganda can bring you to power but will not give you quality living, reality is different

Dangore never talk price, una don dey tell am how much e supposed sell....
Evil people.....
Dis one sef na government fault abi
Very very evil people...
Una see wertin una Papa and Mama wey dey do oil business dey cause abi....
Issokay
We are all NIGERIANS

Babangidapikin:
Proposed ke, let him sell at what is profitable to him and his company... Buy Nigeria products you na go dey do shakara ... Glo crash MTN .. Air Peace don crash that yeye Proposed National carriers price ..Messr Dangote Refinery don crash Diesel price ...Buy made in Nigeria products... Nigeria products don't bite your pocket ...

Crash diesel price wen?