Oil marketers in Nigeria are exploring the option of importing petrol due to a recent declaration by the Nigerian National Petroleum Company Limited (NNPCL).
NNPCL stated that it would only fully purchase petrol from the Dangote Petroleum Refinery if the market prices were higher than local pump prices in Nigeria.
This development comes as discussions between NNPCL and Dangote Refinery continue to drag on without a clear resolution.
NNPCL also clarified that Dangote and other local refineries are free to sell their products directly to any marketer on a willing buyer, willing seller basis, signaling a shift away from any commitments to be the sole distributor in a free market environment.
This position contrasts with earlier statements by Aliko Dangote, President of Dangote Group, who had suggested that NNPCL would be the exclusive buyer of his refinery’s petrol domestically.
Reacting to the uncertainty, oil marketers indicated that they would source petrol from the most cost-effective suppliers, including the option of importing if it proves cheaper.
Mustapha Zarma, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated, “We have not contacted Dangote for now, but we may contact the refinery’s sales department this week to find out the price.”
Zarma added that if Dangote’s petrol is competitively priced, marketers would consider buying from him to supplement NNPCL’s supplies. He also noted that the government’s stance on not subsidizing Dangote’s petrol allows marketers to explore other sources, both domestic and international, to secure cheaper fuel.
Meanwhile, IPMAN’s National Publicity Secretary, Ukadike Chinedu, pointed out that the government’s implementation of the Petroleum Industry Act and the removal of fuel subsidies mean that petrol prices will now be driven by market dynamics.
“Now that NNPCL has said they are not the sole off-taker of Dangote petrol, it then means that the price of the product would determine where we are going to buy it,” he said.
Industry experts suggest that the federal government may not be fully committed to ending fuel importation soon, given NNPCL’s reluctance to exclusively purchase Dangote’s petrol.
The situation reflects a broader challenge of aligning domestic production with market needs amid rising fuel prices and the gradual phasing out of subsidies.
President Bola Tinubu has recently instructed that crude oil transactions with Dangote and other local refineries be conducted in naira, a move expected to reduce Nigeria’s reliance on foreign exchange for crude imports and save approximately $7.3 billion annually.
However, unless the government takes further action, the continuation of fuel importation seems likely as NNPCL remains the sole importer of petrol under the current framework.
