By Amah
Kindly share:
By Amah
Kindly share:
The Independent Petroleum Marketers Association of Nigeria has disagreed with Aliko Dangote, the owner of Dangote Refinery.
According to Dangote in a recent comment, Nigeria’s petrol is less expensive, as his refinery ex-depot price stood at N825 per litre, adding that it is 55 percent below the West African average.
However, IPMAN, on Monday said Dangote Refinery should sell premium motor spirit, PMS, around N770 per litre.
Chinedu Ukadike, the spokesperson of IPMAN, noted that PMS is not cheap because the country is a crude oil producer.
He explained that the exchange rate plays a significant role in determining the PMS price in Nigeria.
Ukadike posited that a drop in the exchange rate if the country’s currency, from N1600 to around N1200 would result in lower price of under N750 per litre.
“On my part, I don’t feel it’s cheap. I think the petrol will go as low as around N770,” he daid.
“That’s my own permutation. I’m not an expert in oil refining. But with what I have gathered — the refinery production costs and the landing at the depot cost, petrol should not be more than N780 or N750, in line with the dollar rate. Now the rate is around N1,600 per dollar; should it appreciate further, PMS from Dangote Refinery should be N750 per litre.
“So, if the dollar can come down to N1,200, I want to tell you that the price of PMS at the pumps will go below N750,”
He reiterated recently that Nigeria’s petrol price is not expensive.
The cost of petrol in Nigeria currently is between N875 and N910 in Lagos and Abuja.
