The ongoing fuel supply situation in Nigeria has taken a new twist as the Dangote Refinery, which is based in Lagos and processes 650,000 barrels of oil per day, has not responded to calls from oil marketers requesting direct access to lift petrol. This refusal has raised concerns among oil marketers, who say it could affect fuel prices across the country.
Leaders of two key oil marketing groups, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association (PETROAN), revealed the situation in exclusive interviews.
The President of IPMAN, Abubakar Maigandi, and the President of PETROAN, Billy Gillis-Harry, both confirmed that despite efforts, the Dangote Refinery has not allowed direct purchases of petrol by oil marketers.
This development comes after reports surfaced that the Nigerian National Petroleum Company Limited (NNPCL) has stepped down as the sole buyer of petrol from the Dangote Refinery. This decision by NNPCL has left oil marketers uncertain about their future fuel supply and pricing strategies.
Maigandi expressed frustration over the situation, saying that all attempts to meet with the Dangote Refinery’s management have been unsuccessful. “Up till today (Monday) we have not had a meeting and feedback from Dangote Refinery on direct sales of its fuel,” he said. Without direct access, oil marketers are unable to determine the price of Dangote petrol.
Maigandi suggested that if the refinery agreed to sell petrol directly to oil marketers, it could result in lower fuel prices for consumers. He explained, “There will be a small reduction in price if Dangote refineries sell petrol to us directly.” Currently, petrol prices in Nigeria vary between N950 and N1,200 per liter, but he believes these prices could drop slightly if direct sales were allowed.
Maigandi also shared the prices at which NNPCL sold petrol to marketers, stating, “NNPCL sold petrol to us at N840 and N870 per liter depending on the location. We sell at N950 in Abuja depending on the location.”
The situation is further complicated by NNPCL’s decision to no longer serve as the sole off-taker for Dangote petrol. Maigandi expressed the industry’s uncertainty, noting, “We’re waiting to hear from Dangote Refinery” regarding whether marketers can start lifting petrol directly.
Billy Gillis-Harry echoed these concerns, stating that efforts to engage Dangote Refinery in discussions for direct fuel lifting have also failed. “We have attempted to have a business discussion with Dangote Refinery on direct petrol lifting but as of today, they have not given us the green light,” he said.
