The Independent Petroleum Marketers Association of Nigeria (IPMAN), has explained that Dangote Refinery should sell premium motor spirit around N770 per litre.
Spokesperson of IPMAN, Chinedu Ukadike, who stated this in reaction to Dangote’s recent comment that Nigeria’s petrol is less expensive, noted that PMS is not cheap owing to the country’s position as a crude oil producer.
Dongote Refinery’a ex-depot price stands at N825 per litre.
According to Ukadike, the exchange rate is a major determinant in PMS price in Nigeria, noting a drop in exchange from N1600 to around N1200 would bring down the price to below N750 per litre.
“On my part, I don’t feel it’s cheap. I think the petrol will go as low as around N770. 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 added.
Dangote, barely a week ago said Nigeria’s petrol price is 55 percent below the West African average.
He reiterated recently that Nigeria’s petrol price is not expensive.