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Refiners, Marketers Hopeful On Fuel Price Drop

Published

Tuesday, October 1, 2024 at 12:18 PM

Written by Love Patience Tarimoboere

Refiners, Marketers Hopeful On Fuel Price Drop

As Nigeria marks its 64th Independence Day celebration, oil marketers, and refiners have expressed prospects that with the kickoff of the ‘Naira-for-crude’ sale deal between the Federal Government and the Dangote Refinery on Tuesday October 1st, 2024, the price of Premium Motor Spirit (Petrol) will reduce in the coming weeks and months.

The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi and spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko disclosed these on Monday, September 30th, 2024.

The Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, Zacch Adedeji and the Chairman of the Federal Inland Revenue Service confirmed that all is set for the Tuesday, October 1, 2024, kickoff of the crude oil sale in Naira deal to Dangote Refinery through the Nigerian National Petroleum Company Limited (NNPCL).

The confirmation of the deal’s commencement came shortly after President Bola Ahmed Tinubu gave the approval in July 2024.

The price of petrol has a significant effect on the cost of transportation in Nigeria.

It is then believed that lower prices of petrol following the implementation of the ‘Naira-for-crude’ deal will directly impact the cost of transportation and then also affect the prices of goods and services across the country.

Crude sale in Naira to Dangote Refinery will also reduce Petrol Prices.

Dishing hopeful insights on the benefits of the ‘Naira-for-crude’ deal, Maigandi said its only proper that implementation will in the long run reduce the price of PMS for Nigerians.

“Yes everybody expected that the price of fuel will drop with the commencement of Crude oil sale to Dangote Refinery in Naira”, he stated.

“Tuesday October 1, we await to see the outcome. There will be a reduction in the Dangote Petrol Pump price in the future. I can’t say to what extent but no matter how small it is, the price will be cut down”, President of the Independent Petroleum Marketers Association of Nigeria stated.

Idoko also contributed that apart from the petrol price reduction impact, the ‘Naira-for-crude’ will lead to the appreciation of Naira against the dollar in the coming days and months.

“There are several other factors that will affect price apart from foreign exchange”, Idoko said.

“Selling in Naira to Dangote Refinery and other modular refineries and the discounts are reasonable, it will reduce the pump price of petrol”.

“In terms of the price, with crude in Naira deal, there will be several discounts which will affect the bottom line. The intervention will dovetail into petrol price reduction at the end of the day”.

Edited By: Chinedu Eze

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Refiners, Marketers Hopeful On Fuel Price Drop

The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi and spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko disclosed these on Monday, September 30th, 2024.

The confirmation of the deal’s commencement came shortly after President Bola Ahmed Tinubu gave the approval in July 2024.

The price of petrol has a significant effect on the cost of transportation in Nigeria.

It is then believed that lower prices of petrol following the implementation of the ‘Naira-for-crude’ deal will directly impact the cost of transportation and then also affect the prices of goods and services across the country.

Crude sale in Naira to Dangote Refinery will also reduce Petrol Prices.

Dishing hopeful insights on the benefits of the ‘Naira-for-crude’ deal, Maigandi said its only proper that implementation will in the long run reduce the price of PMS for Nigerians.

“Yes everybody expected that the price of fuel will drop with the commencement of Crude oil sale to Dangote Refinery in Naira”, he stated.

“Tuesday October 1, we await to see the outcome. There will be a reduction in the Dangote Petrol Pump price in the future. I can’t say to what extent but no matter how small it is, the price will be cut down”, President of the Independent Petroleum Marketers Association of Nigeria stated.

Idoko also contributed that apart from the petrol price reduction impact, the ‘Naira-for-crude’ will lead to the appreciation of Naira against the dollar in the coming days and months.

“There are several other factors that will affect price apart from foreign exchange”, Idoko said.

“Selling in Naira to Dangote Refinery and other modular refineries and the discounts are reasonable, it will reduce the pump price of petrol”.

“In terms of the price, with crude in Naira deal, there will be several discounts which will affect the bottom line. The intervention will dovetail into petrol price reduction at the end of the day”.

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