The pump price of petrol produced by the Dangote Petroleum Refinery could potentially fall below N600 per litre if the Federal Government takes the right actions, according to the Crude Oil Refiners Association of Nigeria (CORAN).
Eche Idoko, the Publicity Secretary of CORAN, stated that the price of N898 per litre, which the Nigerian National Petroleum Company Limited (NNPC) currently pays for petrol from Dangote, reflects the rising exchange rate. However, with appropriate government policies, such as pegging the exchange rate at N1,000 to the dollar, the price could drop to around N550 per litre.
Idoko explained that the petrol being sold by the Dangote refinery was produced from both imported crude and locally sourced crude bought in dollars. He reiterated CORAN’s position that if local refineries are supported to sell in naira, the price of petrol would decrease significantly.
“If the crude is sold in naira, about 40 percent of the nation’s foreign exchange currently used for petroleum product imports will be freed up,” Idoko noted. He also emphasized that government intervention, including pegging the exchange rate for locally refined products and removing levies and taxes, could bring the price below N600 per litre.
Despite the current pricing, Idoko praised the Dangote refinery for offering the product at a lower cost than imported petrol, which typically lands at about N1,200 per litre. He called on the government to ensure policies are put in place to stabilize the market, and warned against viewing Dangote as a monopoly.
In response to concerns about high prices, Idoko also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for levies and taxes that add 25-30 percent to the current petrol price, urging the government to reconsider these charges.
NNPC recently announced that the price of petrol from Dangote could exceed N1,000 per litre in northern states. The announcement followed a disagreement between Dangote Group and NNPC over pricing, with Dangote refuting claims that it was selling petrol at N898 per litre to NNPC.
