Dangote: Fuel prices reduction imminent – PETROAN

By Nudoiba Ojen

The President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has expressed assurance that the cost of refined products will drop marginally with domestic refining at Dangote Refinery.

Gillis-Harry, however, said that it would be difficult to give specific prices that the products would go for now.

Dangote Refinery, which began production on Friday with aviation fuel and diesel, will gradually add other products including premium motor spirit popularly known as petrol.

Fuel marketers are already showing interest in selling the products from Dangote Refinery, which are believed would bring about reduction in the high prices Nigerians had been struggling to cope with since reduction of subsidy on imported petroleum products.

When asked on how much reduction in the cost of diesel and aviation fuel Nigerians should expect once the Dangote products start hitting the market, the PETROAN president said, “It is difficult to give an exact figure because so many variables are at play.

“However, the fact that the crude oil that is being used is the one for domestic consumption, takes away the cost of freight and insurance from the total cost. So if that has been removed, there is a likelihood that prices will be impacted positively to the benefit of Nigerians.

“But what exactly will be the price is to be awaited and worked out because, for instance, we don’t know how much he received the crude oil, whether it is in naira or dollar, and those are business information that sometimes is difficult to release.

“However, regardless of whatever the situation is, we should still expect a reprieve, some advantages should come to us. So that is my thinking.”

The PETROAN president said that the association had been meeting with the management of the Dangote Refinery concerning the supply and distribution of products from the plant.

He said, “We hope that with the production coming in, PETROAN will also speed up and advance discussion on how our members can benefit and how Nigerians can be served better and efficiently.

“We’ve been having discussions with them, because, at the end of the day, Dangote cannot be the one producing and also selling at the retail outlets. We know that in previous times such tendencies were not too far-fetched, but we hope that in this dispensation everybody will do their part,” he stated.

Gillis-Harry noted that the coming on board of the Dangote Refinery means that refining can happen in-country, adding, “So it is a thing for us to be glad about. Next is the Port Harcourt Refinery. It is a big plus for us that Dangote Refinery has started production.”

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