- Oil marketers have given a list of justifications for why petrol prices at the pump won’t drop below N300 per litre
- They said that this will come to fruition if Nigeria start manufacturing PMS in significant quantities, given
- They said this after claims that petrol prices will be crashed by Dangote refinery and other modular refineries
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The Major Energy Marketers Association of Nigeria (MEMAN), which represents oil marketers, has highlighted the reasons why the price of gasoline at the pump cannot decrease below N300 a litre.
Source: Getty Images
The marketers made this disclosure in reaction to rumors that the Dangote Petroleum Refinery and other indigenous producers and refinery operators will begin significant production, lowering the pump price of Premium Motor Spirit to approximately N300 per litre.
Legit.ng earlier reported that refinery owners, under the aegis of the Crude Oil Refinery Owners Association of Nigeria (CORAN), explained that providing enough crude oil to local refiners would crash the price of petrol, stating that foreign refineries were cheating Nigeria.
CORAN stated that, like diesel prices, which sold for N1,700 before Dangote began production but later crashed to N1,200, the cost of petrol will crash when mass production begins, The sun reported.
What marketers are saying
The N300 price in MEMAN’s opinion, can only be attained if the federal government guarantees that local refiners will have access to sufficient crude oil.
The group added that foreign refineries were taking advantage of Nigeria.
Eche Idoko, the Publicity Secretary, the Crude Oil Refinery Owners Association of Nigeria (CORAN),
“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 N300/litre as the pump price.
“Why make Nigerians buy it at almost N700/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?”
Filling stations to buy fuel Priced at N200
Legit.ng reported that some filling stations across Nigeria have commenced the sale of Compressed Natural Gas (CNG) fuel, which is seen as a viable alternative to Premium Motor Spirit, also known as petrol.
CNG is a fuel gas under pressure that remains clear, odourless and non-corrosive.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently ordered all filling stations across the country to commence selling CNG.
Source: Legit.ng
