Dangote Refinery: Oil Marketers Sharply Disagree Over Claims of possible Cost Reductions of Petrol to ₦300 Per Litre

Related stories

2027 Permutations: Enugu State Governor Peter Mbah Moves to APC Soon

Seals Deal With Party Hierarchy By Abiola Olawale Ahead of...

[PHOTOS] Akpabio Arrives in Rome, Pays Tribute at Pope Francis’s Lying-in-State

By Abiola Olawale The President of the Senate, Senator Godswill...

Drama As Ododo’s Government Shuts MTN Service in Kogi, Advises Residents On Other Networks

By Kolawole Ojebisi The Kogi State government's Utility Infrastructure Management...

Atiku Breaks Silence on Okowa, Oborevwori’s Defection from PDP to APC

By Abiola Olawale Former Vice President Atiku Abubakar has addressed...

By Tolúlopé Olátúnjí

Major Energy Marketers Association of Nigeria (MEMAN) has countered reports suggesting that local refining of crude oil could reduce the pump price of petrol to ₦300 per litre on the commencement of massive production by the Dangote Petroleum Refinery and other indigenous producers, including operators of modular refineries.

MEMAN, on Monday, stated that achieving such a reduction would depend on the government’s ability to ensure an adequate supply of crude oil to local refineries. The organization noted that foreign refineries were significantly profiting at Nigeria’s expense.

While responding to report of possible reduction in cost of petroleum products , the Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko said: “A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians”

“If we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure you that we should be able to buy PMS at ₦300 per litre as the pump price”, he added

Idoko questioned the rationale behind selling petrol at nearly ₦700 per litre when local refining could potentially reduce the price.

He asked, “Why make Nigerians buy it at almost ₦700 per litre when you know that if you allow refineries to work, the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

On the contrary , the former Chairman of MEMAN and current CEO of 11 Plc, Tunji Oyebanji, on Monday said that it was unrealistic to expect petrol prices to drop to ₦300 per litre.

He analyzed the cost structure of crude oil: “One barrel of crude has 159 litres. Currently, a barrel is about $80. Multiply that by ₦1,400, and you get ₦112,000 for a barrel of crude. Divide ₦112,000 by 159, and it gives you ₦702 per litre of crude only.”

Oyebanji added: “No refining, no transportation, no finance cost, and no distribution margins. Just ordinary crude is ₦702.”

Oyebanji’s analysis challenges CORAN’s executive assertion that petrol prices would plummet with local refining. He argued that crude oil, the primary raw material for PMS, is priced in dollars, making significant price reductions unlikely.

“We were selling diesel for ₦1,700 to ₦1,800 per litre, but as soon as the Dangote refinery started production, it brought down the price to ₦1,200 per litre. What other proof do you need?”, he asked
Furthermore, Oyebanji noted that the potential for further diesel price reductions by December is hinged on the stability exchange rate, which affects prices because Dangote and others still imports crude.

Recall that on May 18, 2024, Aliko Dangote, Africa’s richest man, had announced that Nigeria would no longer need to import petrol if all things work according to plan.

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

Latest News
2027 Permutations: Enugu State Governor Peter Mbah Moves to APC Soon[PHOTOS] Akpabio Arrives in Rome, Pays Tribute at Pope Francis’s Lying-in-StateUS and China holding talks on trade war, Trump says after Beijing rebuttalDrama As Ododo's Government Shuts MTN Service in Kogi, Advises Residents On Other NetworksAtiku Breaks Silence on Okowa, Oborevwori's Defection from PDP to APCTribunal Upholds FCCPC's $220m Fine Against Meta, WhatsApp And Additional $35,000APC Accuses Atiku Of Triggering PDP's Crisis By Ignoring Party's Zoning ArrangementNwoko To Oborevwori: Embrace New Politics, Shun Deals That Led To Decline Of Delta PDPWhy Tinubu Approved Aso Rock's Switch From National Grid To Solar, FG Explains"I'm Honoured" Says Dangote After Appointment To World Bank Investment LabRamaphosa, Trump Meet Soon Over Strained South Africa-US Relations After Ambassador Rasool's ExpulsionEminent Scholar- Diplomat, Ibrahim Gambari Showers Accolades On Emir of Ilorin, Ibrahim Sulu-Gambari, on His 85th BirthdayRelief As NiMet Workers Call Off Strike After FG’s Brokered Truce'No Comment'...Reps Decline Response As Ibas Shuns Panel On Rivers Emergency Rule AgainPoverty Will Increase In Nigeria By 3.6% Over Next Five Years -- World Bank
X whatsapp