Victor EzejaIndications have emerged that Dangote Refinery’s commencement of of supply of diesel to marketers will lead to a crash in the price of the commodity.
National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, gave the hint in a statement on Tuesday.
Maigandi confirmed that the $20 billion worth Dangote Refinery had begun domestic diesel supply, and is selling at N1,225 per litre, a decreased price from N1,700 per litre.
“So some of our marketers have started getting the product, but as an association, we have yet to get the product because we want to get the actual rate that will be sold to us when we buy in bulk.
“However, they have started selling diesel because some of our marketers have started buying.
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“They are selling at N1,225/litre, and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now, this (diesel) is what they are starting with. So we are expecting them to release PMS anytime starting now”, he said.
The drop in pump price of diesel is expected to ease the burden of energy costs borne by businesses in Nigeria as it is mostly used in powering generating sets for electricity and also vehicles for transporting goods across the country.
Prime Business Africa also gathered that the refinery would start supplying Premium Motor Spirit (PMS) also known as petrol to the domestic market in May this year.
The Dangote Refinery had in January announced its readiness to begin the production of refined oil products after it received the last batch of six million barrels of crude the Nigeria National Petroleum Corporation Limited (NNPCL), which was the required amount to commence production.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
