Aliko Dangote's meeting with marketers may drop fuel price - Report

The Dangote refinery is set to meet with the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Tuesday with regards to a topic that has been on the lips of concerned Nigerians.

Both parties are set to discuss the viability of a decrease in Dangote’s fuel price compared to the country’s current price.

The Independent Petroleum Marketers Association Of Nigeria (IPMAN) alongside the Dangote refinery is set to finalize agreements on the cost of lifting petrol from the refinery. IPMAN predicts the move would contribute to the stability and efficiency of Nigeria's fuel supply chain.

This is following the government’s decision to give the Dangote refinery and marketers the liberty to determine the price they intend to charge the market.

Last week, the Nigerian National Petroleum Company Limited (NNPC), decided to hands off from the operations of Dangote’s refinery.

This was done in order to allow fuel pricing be determined by market forces as defined by the Dangote refinery and marketers.

As reported by the Punch newspaper, IPMAN's National Publicity Secretary, Chinedu Ukadike, gave an update on this new development on Sunday, stating that the group is ready to begin a positive business relationship with the refinery and wanted to meet with executives of the Dangote refinery for a discussion.

“We hope to sit down with Dangote maybe Tuesday or Wednesday and if they give us a template or price, we will move to Dangote. I want to reassure you that we have all it takes to off-take whatever Dangote will give to us. I don’t know why they are dragging their legs to discuss with marketers, maybe it is politics,” the publicity secretary stated.

“The more we take action in terms of distribution lines, the price will come down, we are not afraid of this competition, we have organized ourselves and are ready to compete because this is the survival of the fittest,” he added.

Petrol pricing

When asked about the pricing of petrol in the near future, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, noted that the price could drop to N700.

Currently, the price of petrol in Nigeria ranges from N1000 to N1500, following a recent hike in the product’s price.

“The price can be knocked down to N700/litre; it depends on the volatility of the market and this does not always mean upward prices, it could also mean prices coming down,” the PETROAN boss stated.

“If we have massive supply and there are a lot of products in Nigeria, obviously everybody will be looking for just minimal profit. Our business is focused on turnover, so people may cut prices down,” he added.

Last week, it was reported that fuel stations owned by independent marketers were adjusting their prices, with many crossing the N1,000 per litre threshold.

In the country's capital; Abuja, the petrol pump price rose to N1,030 per litre at various NNPC outlets, while in the commercial center Lagos, the price increased to N998 per litre.

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