According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), if the landing cost is less than that of the Dangote Refinery, it will import Premium Motor Spirit (PMS), also known as gasoline.
Concerns about the delay in revealing the price of PMS produced by the Dangote Petroleum Refinery were also voiced by the oil marketers.
The national president of IPMAN, Abubakar Maigandi, stated that marketers will continue to import gasoline into the nation if the price from the Dangote Refinery surpasses the landing cost of imported PMS, which is currently estimated to be around N1,120 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said it will import Premium Motor Spirit (PMS), also known as petrol, if the landing cost is cheaper compared to that of the Dangote Refinery.
The oil marketers also expressed concerns over the delay in announcing the price of PMS produced by the Dangote Petroleum Refinery.
Abubakar Maigandi, National President of IPMAN, highlighted that the landing cost of imported PMS currently stands at approximately N1,120 per litre, adding that if the price from the Dangote Refinery exceeds this, marketers will continue to import petrol into the country.
“If the landing cost is cheaper than what the Dangote Refinery will sell, then we will see how to bring in the product,” Maigandi said.
“It is now an open market, so anywhere we see a cheaper rate with good quality, we will buy from there. We don’t know the price of Dangote PMS yet, but we are discussing with our foreign partners.”
Maigandi emphasized that having a number of importers guarantees availability and competitiveness in the market.
“Once everybody is allowed to bring in the product, there will be enough competition, and this will drive prices down. Importers will try to sell their stock and replenish it to stay profitable.”
According to Tribune Online, Aliko Dangote, the group president of Dangote Industries Limited (DIL), revealed that the business is awaiting the NNPCL on pricing during the official rollout of petroleum products from the refinery that produces 650,000 barrels of oil per day.
The billionaire businessman claims that the Federal Executives Council (FEC), under by President Bola Tinubu, has authorized and designed a pricing system. The NNPCL will be the refinery’s only buyer, he continued, and once that is finalized, the goods will be released onto the market.
Olufemi Soneye, a spokesman for the NNPCL, asserted that the country’s oil firm will only buy Dangote’s gasoline if it is less expensive than substitutes from abroad.
“The NNPC Ltd will only fully off-take PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria,” Soneye emphasized.
In order to support a free market system for marketers, he further emphasized that the NNPC is not required to act as the exclusive distributor for local refineries.
