Business

PENGASSAN Explains Why Independent Marketers Can’t Access Petrol from Dangote Refinery

Published by admin on September 25th, 2024.

PENGASSAN Explains Why Independent Marketers Can’t Access Petrol from Dangote Refinery

Aliko Dangote

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has shed light on why independent marketers are unable to buy petrol directly from Dangote Refinery.

At a press conference in Lagos, PENGASSAN President Festas Osifo pointed to a significant pricing gap between what the Nigerian National Petroleum Company Limited (NNPCL) pays for petrol and the prices offered to independent marketers.

Osifo noted that while NNPCL might acquire petrol at around N950 per litre, it sells to independent marketers at about N700, creating a financial discrepancy that NNPCL has to manage.

Major marketers can purchase directly from Dangote at a price close to NNPCL’s buying rate, but they often sell it at a higher rate, exceeding N1,000. Consequently, independent marketers tend to favor purchasing from NNPCL to benefit from the lower prices.

Additionally, Osifo mentioned that some crude oil supplies are tied to loan repayments, restricting availability for domestic use. He also highlighted concerns regarding the ongoing divestment by International Oil Companies (IOCs), which presents both challenges and opportunities for Nigeria, potentially impacting foreign investment and production levels.