The Federal Government’s committee, tasked with overseeing the implementation of crude oil sales to local refineries in naira, is set to hold discussions on the pricing of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery, which is scheduled to commence next month.

Sources from both the oil marketing sector and the Implementation Committee, led by Finance and Coordinating Minister Wale Edun, revealed that the panel will conduct several meetings this week and in the coming weeks to address this issue. The committee is expected to finalize a framework that will determine the benchmark price the Dangote refinery will pay for crude oil in naira. The Federal Government will then need to decide whether to subsidize petrol prices from the refinery or allow the product to be sold at market rates.

Oil marketers have indicated that petrol prices from the Dangote refinery are likely to exceed current pump prices, which range from N600 to N700 per litre depending on the location. They warn that without government intervention, dealers might struggle to purchase the product from the refinery.

According to recent data from the Major Energies Marketers Association of Nigeria, the landing cost of petrol is N1,117 per litre. Marketers argue that this figure reflects the true market price and suggest that the cost of petrol from the Dangote refinery should be aligned with this value.

Currently, the Nigerian National Petroleum Company Limited (NNPC) is the sole importer of petrol into the country. Other marketers have ceased imports due to difficulties in accessing the US dollars required for these transactions.