₦airaland Forum

Independent oil marketers on Wednesday adjusted the pump price of petrol in the Federal Capital Territory (FCT) to reflect the price at which they bought the product from Dangote Refinery and Petrochemical Company.

Checks revealed that many filling stations have adjusted their pump price of petrol to an average of N1,200 per liter.

The adjustment followed the full deregulation of the downstream sector of the petroleum industry, which allowed the Nigerian National Petroleum Company Ltd to end its exclusive purchase agreement with Dangote Refinery.

This effectively opened up the market for other marketers to buy petrol directly from the refinery.

The implication of this is that the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers.

TossTos:
Gradually this is hitting 1500, I knew soon Dangote will be forced to declare the price he sells or among the independent market will reveal the secret and we'll shift the blame game to Dangote forgetting the price crude was sold to him too

dre11:
https://dailytrust.com/dangote-refinery-independent-marketers-adjust-pms-price-to-n1200/#google_vignette

Eniitankorede:
I know that government could have made the price cheaper through pegging an exchange rate for sale to local refineries or selling crude cheaper locally. But they wouldn’t do it because they want to stop smuggling of refined petrol to neighbouring countries. There is no way petrol will be smuggled at 1200/litre to neighbouring countries. It is just not profitable. But government must do something quickly before they cause class suicide due to hunger and poverty. They must not also underrate the propensity to cause social unrest and revolution. They must do something quickly to reduce the pain on the people.

Eniitankorede:
I know that government could have made the price cheaper through pegging an exchange rate for sale to local refineries or selling crude cheaper locally. But they wouldn’t do it because they want to stop smuggling of refined petrol to neighbouring countries. There is no way petrol will be smuggled at 1200/litre to neighbouring countries. It is just not profitable. But government must do something quickly before they cause class suicide due to hunger and poverty. They must not also underrate the propensity to cause social unrest and revolution. They must do something quickly to reduce the pain on the people.

Salewa97:
Good.

So from the beginning, Dangote was not selling directly to the marketers?

dre11:
https://dailytrust.com/dangote-refinery-independent-marketers-adjust-pms-price-to-n1200/#google_vignette