Site icon NewsVeo

Dangote sells Fuel at reduced price, Pump Price may come down

The Dangote refinery is selling petrol to the Nigerian National Petroleum Corporation (NNPC) at ₦766 per litre, according to multiple sources from the Federal Ministry of Petroleum Resources, NNPC, and major energy marketers.

This agreement, which involves the sale of crude oil to the Dangote refinery in naira, has been identified as a key factor affecting the current price of petrol.

“This arrangement is similar to the Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) transactions previously used with foreign refineries,” a major marketer, who requested anonymity.

“This deal has positively impacted the petrol price Dangote will offer to NNPC at around ₦766 per litre. However, the exact price NNPC will charge marketers remains unclear.”

A senior official from the Independent Petroleum Marketers Association of Nigeria (IPMAN) commented on the potential retail price if marketers were to obtain petrol at ₦766 per litre.

He noted that adding costs for transportation, levies, and other margins could result in retail prices of approximately ₦790 in Lagos and up to ₦820 in northern regions due to transportation distances.

Gillis-Harry from IPMAN indicated that while the association had not been informed of the exact Dangote refinery fuel prices, a rate of ₦766 would be favorable compared to the current ₦870 per litre charged by NNPC.

He mentioned that the final retail price would be determined through discussions and negotiations, emphasizing the need for communication between Dangote and the retail network.

Despite managing over 6,000 retail outlets, Gillis-Harry noted that Dangote had not yet engaged with them directly.

Get instant and latest news updates via Our WhatsApp Community or Google News online channel.

Exit mobile version