…landing cost falls

Dangote Refinery yesterday slashed its petrol ex-depot or gantry loading price to N865 per litre. This translates to a reduction of N15 when compared with the previous ex-gantry loading cost of N880.

The management of the refinery conveyed the price reduction to its customers in a notice. This is as the landing cost of petrol has fallen. As at Tuesday, the landing cost of petrol per litre was N852.02; diesel, N953.96, and ATK, N988.13.

The Executive Secretary of Major Energies Marketers Association of Nigeria (MEMAN), Mr, Clement Isong, the National Public Relations Officer of the Independent Petroleum Marketers Association (IPMAN), Chinedu Ukadike, and the Group Chief Branding and Communication Officer, Dangote Industries Limited, Mr. Anthony Chiejina, in separate interviews with New Telegraph confirmed the price slash by Dangote refinery. Chiejina attributed the price slash to the global crude oil price reduction.

He said: “The price of crude globally has reduced. Dangote refinery reduced the ex-gantry loading cost because of the reduction of the global price of crude oil.” But Ukadike stated that the development could be a fallout of the meeting the Federal Government held with the relevant stakeholders on the nairafor-crude initiative.

He stated that the price reduction though will in the long run increase turnover had currently made the oil marketers who had not finished selling their current stock to suffer some financial loss. He said: “It was reduced because of the naira for crude initiative which the federal government said it would continue.

This will be able to attract more local investors. It will guarantee energy security, return on investment of the international oil companies (IOCs) in the Nigerian local refinery. “So all this put together, it Will also boost the liberalization of the market and sustain the Petroleum Industry Act.

This price reduction is a fallout of the continuation of Nairafor-crude. The markup of exchange has been thrown out. “However, it has slowed down our return on investment because currently we are going to sell at a loss. But in the long run the price reduction ultimately will be good.

It will lead to higher turnover as Nigerians would buy more petroleum products when the prices are low. It means that that importation will bring down the price, moreso with the fall in the global price of crude oil.” Recall that the Federal Government had yesterday reassured of the continuation of the Crude and Refined Product Sales in Naira initiative.

This was the outcome of the meeting of the Technical Sub Committee on the Crude and Refined Product Sales in Naira initiative. This was contained in a statement by the Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga. The statement was titled: “Update on the Crude and Refined Product Sales In Naira Initiative.”

Manga said: “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative has today convened an update meeting held in Abuja with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, presiding. The meeting reviewed progress and addressed ongoing implementation matters.