Nigeria’s oil marketers have indicated that petrol prices could drop to between N600 and N650 per liter when Dangote Refinery begins production, depending on the cost of production.

This was revealed by Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, in a statement on Monday.

Fashola’s statement comes amid reports that the $20 billion Dangote Refinery may not commence fuel production by mid-August 2024 as previously projected by Aliko Dangote, President of Dangote Group.

Fashola highlighted that a significant challenge for the Lagos-based refinery remains the crude oil supply crisis.

He noted that the official petrol price from the Nigerian National Petroleum Company Limited (NNPC) stands at N570 per liter, while private depots are selling at N700 per liter.

However, Fashola expressed optimism that when Dangote’s refinery becomes operational, the pump price could potentially decrease to between N600 and N650 per liter.

“The official price from the NNPC is around N570/liter, but third-party private depots sell PMS to most of our members at N700 and above,” Fashola said. “Plus or minus, we hope Dangote can sell between N600 and N650/liter. N600 is still okay, but it will depend on the production costs at Dangote’s end.”