Price Of PMS May Crash To N300 Soon

The price of premium motor spirit, commonly known as petrol, is expected to decrease to approximately N300 per litre with the onset of extensive production by the Dangote Petroleum Refinery and other local producers, as affirmed by operators of modular refineries on Sunday.

However, they emphasized that this reduction would only be feasible if the government ensures an adequate supply of crude oil to domestic refiners, highlighting the exploitation of Nigeria by foreign refineries.

Addressing the issue as representatives of the Crude Oil Refinery Owners Association of Nigeria (CORAN), they elucidated that the diesel price experienced a significant drop following Dangote's production, indicating a similar outcome for petrol once local production escalates.

CORAN, a registered body comprising modular and conventional refinery firms in Nigeria, criticized the current scenario where numerous companies benefit from importing petroleum products, detrimentally affecting Nigerians.

Eche Idoko, the Publicity Secretary of CORAN, questioned the logic behind selling petrol at almost N700 per litre when local refineries could potentially offer it at N300 per litre if allowed to operate optimally.

He emphasized the precedent set by Dangote in reducing diesel prices and projected a similar trend for petrol, provided there is sufficient crude oil supply.

The recent statement by Africa's wealthiest individual, Aliko Dangote, reinforced the potential of the Dangote refinery to eliminate Nigeria's need for petrol imports, signaling a transformative shift in the continent's energy landscape.

Moreover, the CORAN spokesperson advocated for selling crude oil at a naira equivalent rather than using dollars, stressing the need for a business-friendly environment to facilitate the production and affordability of locally refined petroleum products.

Nigeria currently boasts 25 licensed modular refineries, with only five operational due to challenges such as crude oil unavailability, hindering funding and completion of the remaining projects.

Oil marketers echoed the anticipation for reduced petrol prices once local production commences, aligning with Dangote's assertion and emphasizing the importance of crude oil provision to domestic refineries.

Regulatory authorities assured the implementation of guidelines to supply feedstock to indigenous refiners, in compliance with the Petroleum Industry Act 2021, aiming to foster seamless operations and sustainability in the domestic oil sector.