Marketers are pushing for direct access to Premium Motor Spirit (petrol) from the Dangote Refinery, criticizing the Nigerian National Petroleum Corporation’s (NNPC) stronghold on the market.
At a press briefing in Abuja, Finance Minister Wale Edun, represented by Dr. Zaccheus Adedeji, Chairman of the Federal Inland Revenue Service, announced that marketers would need to purchase the product from the NNPC’s trading arm. Edun also revealed that the Dangote Refinery would start distributing 25 million liters of petrol daily, beginning Sunday, September 15, 2024, while NNPC would supply crude oil to the refinery from October 1.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized the need for an open market, aligning with earlier commitments to a willing-buyer, willing-seller approach. Despite NNPC’s earlier statement that it was not the sole buyer of Dangote’s products, the government has now clarified that the corporation would remain the exclusive purchaser of petrol from the refinery for now.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Association of Nigeria, expressed concerns about the potential creation of a new domestic monopoly, warning of risks to the oil and gas sector. He also criticized the lack of transparency regarding pricing details.
Meanwhile, NNPC mobilized 300 trucks to begin loading fuel at the Dangote Refinery on Sunday, in line with the $20 billion facility’s agreement. However, the actual price of Dangote petrol has yet to be made public, though sources indicate that NNPC will purchase the product at around N766 per liter. Independent marketers are expected to access the product through NNPC for the time being, with direct purchases from Dangote anticipated in the coming weeks.
The potential for a price drop has been hinted at, with some marketers estimating that fuel could sell for N790 per liter in Lagos and N820 per liter in northern regions, depending on transport costs and other fees.
