Valentine Okafor
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has considered the price of petrol as still high and should currently reflect the market foreign exchange rates.
According to the Association Dangote Refinery should sell premium motor spirit around N770 per litre.
The spokesperson of IPMAN, Chinedu Ukadike, stated this on Monday, while reacting to comments by Aliko Dangote, who said Nigeria’s petrol is less expensive, as his refinery ex-depot price stood at N825 per litre.
Ukadike, argued that PMS is not cheap owing to the country’s position as a crude oil producer and also added that the exchange rate is a major determinant in petrol price in Nigeria.
He noted that 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, had just said that Nigeria’s petrol price is 55 per cent below the West African average.
Meanwhile, Nigerians buy petrol between N875 and N910 in Lagos and Abuja.