Fuel Price Hike: Marketers Set Conditions to Purchase Dangote Petrol, Consider Importing

Following the fuel price hike, marketers outline conditions for purchasing petrol from Dangote Refinery while exploring potential fuel import options. Read about the ongoing developments in Nigeria’s energy market.

Nigerian petroleum marketers are currently in a state of uncertainty due to the dispute revolving around Dangote Refinery’s Premium Motor Spirit (petrol) pricing, which was recently announced by Nigerian National Petroleum Company Limited on Monday.

As petroleum marketers requested transparency, Dangote Refinery was urged to reveal the price at which it sold petrol to NNPCL.

According to the latest data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, marketers have observed that domestic Petrol production alone cannot meet Nigeria’s daily consumption of N50 million.

In a distinct interview with OBASANJONEWS on Monday, Billy Gillis-Harry – the President of PETROAN and Abubakar Maigandi – the President of Independent Petroleum Marketers Association of Nigeria strongly urged for this demand.

There is a possibility of an impending increase in the price of gasoline.

It should be noted that NNPCL unveiled a roster of retail prices for Dangote Petrol across all its branches throughout the country on Monday.

According to the latest petrol prices, Lagos State will be selling petrol at N950.22 per liter while Oyo and other South West states can expect to pay a slightly higher price of N960 per liter for their fuel.

The price of petrol in Federal Capital Territory (Abuja), Kano, and Kaduna will be N999.22 per litre.

The cost of petrol in Imo and Rivers states will also be N980.2, whereas Borno State’s rate will come up to N1,019.22 per litre.

Despite OBASANJONEWS receiving information on Monday that new prices have not been impacted, it is likely that fuel prices will increase throughout the nation in the near future.

OBASANJONEWS noted that NNPCL has not yet disclosed the selling price of Dangote Refinery Petrol to the majority owners of filling stations in Nigeria.

Independent marketers’ petrol pump prices usually exceed those of NNPCL retail outlets by over N100, resulting in fuel prices reaching approximately N1,200 per liter.

Controversy Surrounding the Petrol Prices of Dangote

Over the weekend, Dangote Refinery initiated its initial distribution of petrol and officially appointed NNPCL as an offtaker.

NNPCL disclosed that they purchased petrol from Dangote Refinery at a rate of N898 per liter.

Dangote Group criticized NNPCL for the sale of their first petrol, but did not reveal the exact amount it was sold at.

The petrol price controversy, which was caused by the development, exacerbated the crisis in the sector.

Gillis-Harry believes that it is important for Dangote Refinery to disclose the price of petrol to marketers.

READ ALSO:NNPC Explains Real Factors Behind Fuel Price Increase

The president of PETROAN, Gillis-Harry, demanded complete openness in the oil and gas industry.

He suggests that the Dangote Refinery must disclose the precise price of its petrol to stakeholders before marketers can buy it.

We need to be informed by Dangote Refinery about the selling price of its petrol as NNPCL has already disclosed their pricing.

He told OBASANJONEWS that there should be transparency in determining the price of Dangote Refinery Petrol and how NNPCL will handle their dealings to avoid being left uncertain. Currently, they are unsure about the situation.

IPMAN reports that the NNPCL has not yet disclosed the Dangote Petrol price to marketers.

Maigandi, the IPMAN president, stated that he is anticipating the prices at which NNPCL will offer Dangote Petrol to marketers.

He voiced his disapproval regarding the current state of affairs in the industry, particularly with regards to contradictory petrol prices from Dangote Refinery and NNPCL.

NNPCL has not yet released the prices at which independent marketers can purchase petrol, and we are currently awaiting this information.

We are procuring directly from NNPCL, excluding Dangote Refinery. Marketers can manage without any difficulty in pricing.

As marketers, we are displeased with the exorbitant price of gasoline as it requires a significant amount of funds to acquire our products.

According to OBASANJONEWS, the speaker stated that with Dangote Refinery already operating at full capacity, it is now up to the government to revive other refineries in order for petrol prices to potentially decrease.

Marketers say Nigeria cannot rely on the Dangote Refinery.

When queried about the possibility of marketers resorting to imports due to the cost of Dangote Refinery Petrol, Gillis-Harry responded by stating that Dangote Refinery’s daily production is approximately 25 million liters. This quantity equates to around 15,000 metric tonnes – an amount smaller than a single cargo.

In the past, NNPCL has been distributing a large number of cargoes to depot owners – including our members – for access by Nigerians.

This implies that we will not rely solely on domestically produced gasoline. Some level of importing is necessary to compensate for the shortfall.