Dangote Refinery Sparks Controversy by Snubbing Oil Marketers on Direct Petrol Lifting
The Dangote Refinery, which has a capacity of 650,000 barrels per day, has disregarded requests from oil marketers to allow direct lifting of its Premium Motor Spirit (petrol).
In exclusive interviews with DAILY POST, both Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, and Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), expressed their concerns over the situation.
This issue arises following reports that the Nigerian National Petroleum Company Limited (NNPCL) has stepped back from its role as the exclusive off-taker of Dangote petrol, leaving oil marketers and consumers uncertain.
Maigandi noted that all attempts by IPMAN to engage with the management of Dangote Refinery regarding direct fuel sales have been unsuccessful. “As of today, we have not received any feedback from Dangote Refinery concerning direct sales,” he stated. He emphasized that without direct access to purchase the fuel, discussions about pricing remain impossible.
He indicated that a direct supply from Dangote Refinery could lead to a decrease in petrol prices, which currently range from N950 to N1,200 per liter. “If we could buy petrol directly from Dangote, there would likely be a slight reduction in price,” he added.
When asked about the pricing from NNPCL, Maigandi revealed that they sell petrol to marketers at rates between N840 and N870 per liter, depending on the location, with retail prices reaching N950 in Abuja.
Regarding NNPCL’s withdrawal as the sole off-taker, he stated, “We are awaiting confirmation from Dangote Refinery on whether we can lift petrol directly.”
Gillis-Harry echoed these sentiments, highlighting the challenges petroleum marketers face in obtaining approval from Dangote Refinery for direct petrol lifting. “Despite our efforts to initiate discussions, we have yet to receive any indication of support from them,” he noted.
When approached for comment, Dangote Group spokesperson Anthony Chiejina stated, “I am not aware” of the situation.
On September 15, Dangote Refinery announced its first distribution of petrol, with NNPCL as the only buyer. Following this, fuel prices were adjusted to between N950 and N1,100 per liter at retail outlets. These changes were linked to NNPCL’s purchase price of Dangote petrol at N898 per liter, a claim disputed by Dangote.
The refinery, owned by Africa’s wealthiest individual, Aliko Dangote, indicated that its official petrol pump prices would be determined by the Presidential Implementation Committee on Naira-for-crude sales.
Despite the planned initiation of the Naira-for-crude deal, expected to bring in 24 million barrels by October and November 2024, the price per liter of Dangote petrol remains contentious.
Recently, the House of Representatives urged Dangote Refinery to permit oil marketers to lift petrol directly. Previously, refiners and marketers suggested that the launch of the Naira-for-crude agreement with Dangote Refinery and others could result in lower petrol prices.
