Oil marketers dispute Dangote refinery’s petrol prices, vowing to import fuel at lower rates, promising to bring relief to consumers.
[dropcap]O[/dropcap]n Friday, oil marketers revealed that the price of Premium Motor Spirit (PMS), commonly known as petrol, produced by Dangote Petroleum Refinery ranges between N1,015 and N1,028 per litre, depending on the purchase quantity.
In response, these marketers have vowed to import petrol and sell it below the prices set by the Dangote refinery and the Nigerian National Petroleum Company Limited (NNPCL).
Also read: Dangote urges marketers to source petrol directly from his refinery
Data released by the Major Energies Marketers Association of Nigeria on Thursday indicated that the landing cost of petrol was N978.01 per litre as of October 31, 2024
. In contrast, the landing costs for diesel and aviation fuel were reported at N1,069.97 and N1,119.67 per litre, respectively.
Despite the commencement of domestic refined petroleum product sales by the Dangote refinery, the company has not disclosed the actual petrol prices, leading to speculation among marketers.
A source, who spoke on condition of anonymity, confirmed that the Dangote refinery’s petrol prices are currently higher than those of imported PMS.
“Dangote is selling to bulk buyers at N1,015 per litre, while those not purchasing in bulk pay N1,028 per litre,” the marketer stated. “Imported PMS is cheaper, prompting efforts to ensure the government halts fuel imports.”
Marketers, under the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), have expressed intentions to sell imported petrol below Dangote’s pricing.
Dr. Joseph Obele, PETROAN’s Publicity Secretary, indicated that the association has secured agreements with international suppliers to import PMS at approximately N800 per litre.
“PETROAN Limited has received its incorporation license and applied to the NMDPRA for import authority,” Obele explained. “Our initial stock will arrive soon, providing Nigerians with better pricing. We will sell below Dangote’s and NNPC’s prices, which currently stands at N1,040 per litre.”
Obele elaborated that while the NNPC acts as a middleman, the actual pricing agreement between NNPC and Dangote remains undisclosed, creating transparency concerns within the industry.
He acknowledged the complexity of pricing, noting that the landing costs can vary significantly by country.
The ongoing price differences raise questions regarding the Dangote refinery’s operational costs. Obele suggested that the higher prices may stem from the use of imported crude bought at a premium before current market declines, leaving consumers facing inflated costs for the foreseeable future.
National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria, Yakubu Suleiman, echoed Obele’s sentiments, stating that Dangote’s prices exceed those of imported petrol.
Suleiman also accused Aliko Dangote, the CEO of Dangote refinery, of marginalising key stakeholders in the fuel supply process.
In response to these claims, Tony Chiejina, Chief Corporate Communications Officer of Dangote Group, dismissed the reports as “fake news” and declined to disclose the actual pricing of petrol from the refinery, insisting that the circulating figures were inaccurate.
