Oil marketers are anticipating a reduction in fuel prices following the commencement of operations at the Dangote Refinery.
Last Friday, the Dangote refinery announced the start of production and is awaiting government approval to supply diesel and JetA1 across the domestic market.
Commenting on the development, President of PETROAN, Billy Gillis-Harry, noted that the use of domestic crude oil for production eliminates freight and insurance costs, potentially leading to positive price impact for Nigerians.
However, Gillis-Harry emphasized the need to await and assess factors such as crude oil procurement costs before anticipating the actual price reduction.
President of IPMAN, Abubakar Maigandi, indicated that the determination of prices will occur once members begin loading the refinery’s products.
Furthermore, the Executive Secretary/CEO of MOMAN, Clement Isong, shared a more conservative outlook stating that while some savings in freight costs are expected, the major cost driver is the crude oil, and a significant price drop, such as down to N400, is unlikely.
