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Nigerian oil marketers project N600/litre for Dangote petrol

Published

4 months ago

August 13, 2024

In Nigeria, independent petroleum merchants are expecting that when Premium Motor Spirit—also known as petrol—is eventually allowed into the market, the Dangote Petroleum Refinery will sell it for N600 or N650 per litre.

According to dealers operating under the Independent Petroleum Marketers Association of Nigeria, the Dangote refinery will cause the price of petrol to plummet, just like it did for diesel.

In an interview on Monday, IPMAN National Vice President Hammed Fashola informed our correspondent that if the $20 billion refinery received the necessary funding, fuel prices would decrease, particularly concerning the availability of crude oil.

The Nigerian National Petroleum Company Limited, the exclusive importer of PMS, has been supplying it to marketers for N570 per litre, but the majority of IPMAN members purchase it from private depot owners for N700 and more, he claims.

“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.

“The official price from the NNPC is around N570/litre, but the third parties, the private depots sell PMS to most of our members at N700 and above.

“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.

“We know Dangote refinery crashed the price of diesel,” Fashola recalled when discussing the cost of diesel. Diesel cost about N1,600 when the refinery first began to produce it, and it now only costs N1,000.

“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic.”

The head of IPMAN stated that the organisation has discussed potential commercial partnerships with some refinery executives and that the marketers are awaiting Dangote’s arrival.

“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.

Last month, Alhaji Aliko Dangote, President of the Dangote Group, predicted that the refinery would start producing petrol between 10 and August 12, 2024. For various reasons, the refinery with a capacity of 650,000 barrels per day was unable to start producing petrol on Monday.

The continued difficulty in the supply of crude oil may be a hindrance to the refinery, according to findings.

Related Topics:Dangote Featured Nigeria PETROL

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

3 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

3 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.