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The much-anticipated arrival of Premium Motor Spirit (PMS), better known as petrol, from Dangote Refinery is set to take place on Sunday, September 15. According to sources cited by Businessday, the Lagos-based refinery is prepared to commence distribution of its refined petrol to marketers across Nigeria.
In preparation for the launch, marketers have been advised to dispatch their trucks to the refinery today (Friday) for loading. This significant initiative is expected to bolster the country’s fuel supply, reduce dependence on imports, and alleviate the existing challenges faced by consumers.
Despite the imminent entry of Dangote’s petrol into the market, Naija News reports that fuel prices are expected to remain stable for the time being. Initially, Dangote Refinery plans to supply 25 million litres of petrol daily through the Nigeria National Petroleum Company (NNPC) Trading Limited.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed readiness to procure PMS from Dangote Refinery, provided that the price is lower than their current acquisition costs. IPMAN President Abubakar Maigandi stated that members are keen to explore purchasing arrangements but await clarity on Dangote's pricing structure.
"After a meeting with our members today, we are ready to buy petrol from Dangote Refinery as long as the price remains competitive," Maigandi explained. He noted that NNPCL, the sole importer of petrol, currently sells to marketers at an average price of N875 per liter. Consequently, petrol is sold at N930 to N940 depending on sourcing conditions, with a depot price of up to N990 per liter.
Maigandi emphasized that if Dangote Refinery offers a more attractive price, there is no reason for marketers to avoid its products. "We have no issue with Dangote Refinery," he affirmed.
This statement follows comments from Edwin Devakumar, Vice President of Dangote Industries Limited, who suggested that local petroleum marketers are hesitating to purchase from the refinery despite competitive pricing. During an X space session hosted by Nairametrics, he claimed that only 3 percent of local marketers have shown interest in the new petrol from Dangote.
As the launch date approaches, all eyes will be on the impact of Dangote’s petrol on the Nigerian fuel market and the potential shift in purchasing habits among local marketers.