AGS NEWS – The pump price of Premium Motor Spirit (PMS), commonly known as petrol, could decrease to about ₦300 per litre once massive production starts at the Dangote Petroleum Refinery and other local producers, according to operators of modular refineries on Sunday.

However, they emphasized that this reduction depends on the government ensuring an adequate supply of crude oil to local refiners.

They highlighted that foreign refineries are currently exploiting Nigeria.

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The Crude Oil Refinery Owners Association of Nigeria (CORAN) stated that, similar to the drop in diesel prices after Dangote began production, petrol prices would also fall with increased local production.

Eche Idoko, CORAN’s Publicity Secretary, noted that the current high prices benefit importers at the expense of Nigerians.

He assured that if local production ramps up and crude oil supply is sufficient, PMS could be sold at ₦300 per litre.

Idoko criticized the current pricing strategy, which sees Nigerians paying almost ₦700 per litre, and argued for allowing local refineries to operate fully to reduce costs.

He also called for crude oil to be sold at the naira equivalent of the dollar rate to support local refiners.

Nigeria currently has 25 licensed modular refineries, with five operational and producing various petroleum products.

The others face delays primarily due to crude oil shortages, affecting funding and completion.

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Oil marketers are optimistic that Dangote’s refinery will begin petrol production soon, potentially lowering prices below the current Nigerian National Petroleum Company Limited rate of ₦565.50 per litre.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission have promised to ensure crude oil supply to local refiners to support this initiative.