Petrol prices should crash to about N300 per litre when mass production by the Dangote Petroleum Refinery and other refineries begins production.
Refinery owners, under the aegis of the Crude Oil Refinery Owners Association of Nigeria (CORAN), explained that providing enough crude oil to local refiners would crash the price of petrol, stating that foreign refineries were cheating Nigeria.
CORAN stated that, like diesel prices, which sold for N1,700 before Dangote began production but later crashed to N1,200, the cost of petrol will crash when mass production begins.
TimesNow.com.ng reported that Dangote said that petrol import will end from June when the 650,000bpd-capacity refinery begins production.
Dangote refinery announced a crash in the price of diesel from N1,700 per litre to N1,200 as it began production of diesel and aviation fuel.
Punch reports that the CORAN Publicity Secretary, Eche Idoko, said that many companies in Nigeria benefit from petrol imports at Nigeria’s expense.
He reportedly stated that when the refineries begin production in large volumes, there would be a petrol price crash to about N300 per litre.
He predicted that the diesel price would crash further before December 2024, pointing out that the high exchange rate is responsible for the current price of diesel in the country.
According to reports, Nigeria has about 25 licensed modular refineries, five fully functional and producing petroleum products, and 10 are in various stages of completion.
Modular refinery operators disclosed that in addition to the five operational refineries, others remain inoperable due to the challenges of crude oil supply.
Oil marketers also said that petrol costs should be lower than their current price immediately after large production begins in Nigeria.
The marketers expressed delight with the comment by Nigeria’s wealthiest man, Aliko Dangote, that petrol import will end when his refinery begins operation this month.
Energy policy analyst and Head of Platforms Africa Adeola Yusuf expressed similar optimism, stating that petrol production from the Dangote refinery will drastically crash petrol prices in Nigeria.
Yusuf told TimesNow.com.ng in an exclusive interview that what happened to diesel prices will happen to petrol when all the operators begin pumping petrol.
TimesNow.com.ng previously reported that the Independent Marketers Association of Nigeria (IPMAN) have shown keen interest in beginning to lift petrol from the Dangote Refinery in the next few weeks.
Aliko Dangote, Chairman of the Dangote Group, announced that once the refinery commences sales in June, Nigeria will cease importing petrol.
He confirmed that, according to the refinery’s established plans, the country will stop needing petrol imports starting next month.
Source: TimesNow.com.ng
