Pump price of Premium Motor Spirit (PMS), commonly known as petrol, has the potentiality of crashing to about N300 per litre with the onset of large-scale production by the Dangote Petroleum Refinery and other local producers.
According to the Crude Oil Refinery Owners Association of Nigeria (CORAN), a registered body of modular and conventional refinery companies, in a statement, it is easy to achieve the price drop if the federal government provides adequate crude oil to local refiners.
They said that foreign refineries are currently profiting at Nigeria’s expense.
CORAN’s Publicity Secretary, Eche Idoko, said that Dangote refinery, when it begins full production, would have positive impact on the prices.
He said that if local refineries received sufficient crude oil, Nigerians could see petrol prices drop to N300 per litre, compared to the current nearly N700 per litre.
Idoko criticized the current system that benefits international refiners and called for crude oil to be sold to local refineries at the naira equivalent of the dollar rate.
This, he argued, would help strengthen the naira and reduce costs for consumers.
Currently, Nigeria has 25 licensed modular refineries, with five in operation and producing various products, including diesel and kerosene.
However, many plants are facing significant challenges, particularly in securing crude oil, which hampers their ability to obtain necessary financing.
In May 2024, Aliko Dangote announced that his refinery’s production plan would eliminate Nigeria’s need to import petrol by June.
The refinery, which has already impacted diesel prices, aims to meet the fuel needs of West Africa and beyond.
Oil marketers, like the Independent Petroleum Marketers Association of Nigeria (IPMAN), have expressed optimism about lower petrol prices with local production. However, they noted that specific pricing details from the Dangote refinery are still pending. IPMAN President, Abubakar Maigandi said that marketers are hoping for prices at about N500 per litre, lower than the current NNPC rate of N565.50 per litre.
Regulatory bodies have also indicated support for ensuring a consistent supply of crude oil to domestic refiners, which is expected to further stabilize and reduce petroleum product prices in the country.
