Dangote Refinery Sparks Controversy After Sidestepping Oil Marketers for Direct Petrol Lifting

A fresh dispute arises as the Dangote Refinery excludes oil marketers from direct petrol lifting, leading to growing frustrations within Nigeria’s petroleum sector.

The Dangote refinery in Lagos, which has a capacity of 650,000 barrels per day, has disregarded oil marketers’ requests to engage in the direct lifting of its Premium Motor Spirit (petrol).

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), revealed this information to OBASANJONEWS exclusively in separate interviews.

This follows a report from Monday indicating that the Nigerian National Petroleum Company Limited has stepped down as the exclusive off-taker for Dangote Petrol.

This development leaves both oil marketers and Nigerians in a state of uncertainty.

Discussing the situation, Maigandi mentioned that all attempts by IPMAN to arrange a meeting with Dangote Refinery’s management have been unsuccessful.

As of today (Monday), we have not received a meeting or feedback from Dangote Refinery regarding the direct sales of its fuel.

“We can’t discuss the price of Dangote Petrol as we haven’t purchased it directly,” he said.

He mentioned that the price of petrol, currently ranging from N950 to N1,200 per liter, would decrease if Dangote Refinery agreed to sell directly to oil marketers.

“There will be a slight decrease in price if we purchase petrol directly from Dangote refineries,” he mentioned.

When inquired about the price at which NNPCL sells petrol to its marketers, it was stated that “NNPCL sold petrol to us between N840 and N870 per liter, depending on the location. In Abuja, we sell it for around N950 per liter based on the area.”

Regarding NNPCL’s decision to step down as the sole off-taker of Dangote Petrol, Maigandi emphasized that they are “waiting to hear from Dangote Refinery” about the possibility of directly sourcing petrol.

READ ALSO: FG to Supply 12 Million Barrels of Crude to Dangote Refinery in October”

Gillis-Harry reiterated Maigandi’s stance regarding Dangote Refinery’s decision not to sell its petrol directly to marketers.

He stated that despite their efforts to engage in business discussions with Dangote Refinery, petroleum marketers have not yet received approval.

“We have tried to discuss the direct lifting of petrol with Dangote Refinery, but as of now, we haven’t received approval,” he stated.

In response to being contacted by an OBASANJONEWS correspondent regarding the matter, Anthony Chiejina, the spokesperson for Dangote Group, stated that he was unaware of the situation.

On September 15, the Dangote Refinery declared its first petrol distribution, with NNPCL being the exclusive purchaser.

Last month, Dangote Petrol announced a new fuel price increase ranging from N950 to N1,100 per litre at its retail outlets.

The fuel price adjustments were driven by NNPCL’s claim that it purchased petrol from Dangote at N898 per liter; however, Dangote disputed this assertion.

The oil company, owned by Africa’s wealthiest individual, Aliko Dangote, had suggested that the announcement of its petrol pump price would be made by the Presidential Implementation Committee regarding Naira-for-crude sales.

Despite the Nigerian government’s launch of the Naira-for-crude program, which promises a supply of 24 million barrels by October and November 2024, the price per liter of Dangote Petrol continues to be controversial.

In the previous month, the House of Representatives encouraged Dangote Refinery to permit oil marketers to directly collect its petrol.

Previously, refiners and marketers suggested that the initiation of the Naira-for-crude sales agreement with Dangote Refinery and other facilities would result in a decrease in petrol pump prices.