The recent launch of petrol distribution from the Dangote Refinery has sparked a new debate within Nigeria’s fuel industry. Tensions have grown between Aliko Dangote, president of Dangote Group, and various petroleum marketers.
Dangote recently stated that petroleum marketers have shown little interest in purchasing products directly from his refinery, adding to a complex situation in the Nigerian fuel market.
Since Dangote Refinery rolled out premium motor spirit (PMS), or petrol, in September, the response has been mixed. Many Nigerians were hopeful that the local refinery would reduce the price of fuel, alleviating the financial strain of high import costs. However, prices remain high, leaving the public disappointed as the expectation of cheaper fuel remains unmet.
Following a meeting with President Bola Tinubu on the naira-for-crude policy, Dangote expressed the refinery’s capacity to supply up to 30 million liters of petrol daily. He assured the president, “At full capacity, we can even supply whatever is being consumed… We are more than ready and I am also putting my name on the line by telling Mr. President that we will be able to supply the market 30 million liters per day.”
Despite this pledge, some marketers argue that the price offered by Dangote Refinery is higher than the cost of imported petrol, making it difficult for them to purchase from the local supplier. One marketer anonymously commented, “If you have a shop and people don’t come to buy your wares, what do you do?… It’s an open market… If you have good terms, customers would come to you.”
Others echoed this sentiment, mentioning recent instances of importing petrol at a lower rate than what Dangote offers. A marketer disclosed, “The last time I heard, his product was N977, and I could land at N970. Now, if I import 50 million liters… multiply that by seven to see how much I will lose if I buy from him.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also voiced concerns. They claim they are unable to access Dangote’s products directly, despite promises from the Minister of Finance that they would be able to buy from the refinery.
IPMAN President Abubakar Maigandi noted on a recent television appearance that although they are willing to purchase from Dangote, members currently face accessibility issues.
In response, the Major Energy Marketers’ Association of Nigeria (MEMAN) expressed readiness to support Dangote Refinery if fuel prices become more competitive. Executive Secretary Clement Isong stated, “The market prefers to buy from him as a local refiner… He is buying his product in naira, so all these increases in exchange rate shouldn’t affect him. We are very happy to buy from him at the best price.”
