NNU Update
Local refining may crash petrol price to N300/litre – Modular refineries operators say
The Crude Oil Refinery Owners Association of Nigeria says the pump price of petrol may crash as low as N300 per litre once indigenous producers and operators of modular refineries in Nigeria such as Dangote begin operation.
In an interview with Punch, the Publicity Secretary of Crude Oil Refinery Owners Association of Nigeria (CORAN) said;
‘’A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians. If we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure you that we should be able to buy PMS at N300/litre as the pump price.
Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries to work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?
We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?
As I speak to you now there is every tendency that before December diesel prices will drop further. The only reason why diesel is not doing below N1,000/litre is because of our exchange rate.
If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”
