The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged Dangote Refinery to sell premium motor spirit (petrol) at N770 per litre.
The spokesperson of IPMAN, Chinedu Ukadike, said this on Monday.
Ukadike was reacting to comments by businessman, Aliko Dangote, who said Nigeria’s petrol is less expensive, as his refinery ex-depot price stood at N825 per litre.
However, Ukadike noted that PMS is not cheap owing to the country’s position as a crude oil producer.
According to him, the exchange rate is a major determinant in PMS price in Nigeria, noting a drop in exchange from N1,600 to around N1,200 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.
Nigerians currently buy petrol between N875 and N910 in Lagos and Abuja.
