Petroleum marketers have stated that the Dangote refinery, valued at $20 billion, was not designed to provide cheaper petrol, following the recent release of the company’s price template.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, and Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, made this statement on Tuesday, November 5, in response to the price template announced by the Dangote Group on Sunday, November 3.
According to Dangote Group spokesperson Anthony Chiejina, the refinery set its petrol prices at N960 and N990 per litre for ships and trucks, respectively. This announcement came months after fuel distribution began on September 15, 2024.
Meanwhile, the Major Energies Marketers Association of Nigeria, MEMAN, reported that as of October 31, 2024, the landing cost for imported petrol stood at N978 per litre. Gillis-Harry noted that the price difference between Dangote Petrol at N990 per litre and the Nigerian National Petroleum Company’s rate of N1,025 per litre was too minor to deter fuel importation.
He added that if Dangote Refinery aimed to benefit Nigerians, its locally produced petrol would have been priced more competitively than imported alternatives.
“Between N990 of Dangote Refinery price and NNPCL’s price of N1025 per litre, the difference is N35. Dangote Petrol price would have been cheaper if the company meant well for Nigerians.
“As it is now, we cannot tell how much Dangote Petrol will sell when it finally lands across states with his current price template of N990 per litre (to trucks),” he said.
Maigandi commented that Aliko Dangote, President of the Dangote Group, may have received incorrect information regarding the operations of petroleum marketers.
He emphasized that Dangote should consider selling petrol directly to members of the Independent Petroleum Marketers Association of Nigeria, IPMAN.
Maigandi noted that IPMAN’s primary goal is to source petrol directly from the Dangote Refinery, aiming to lower the final price of fuel for consumers across its retail outlets nationwide.
“Maybe Dangote is not being properly briefed about IPMAN. In the oil industry, anyone who says he wants to fight with IPMAN will not succeed because we have 85 percent of filling stations in Nigeria.
“We cannot question the Dangote price because we are in a deregulation regime. What we are advocating is to buy petrol directly from Dangote refinery so we can sell at a cheaper rate than what we currently sell to Nigerians,” he said.
This development comes as Nigerians voice concerns over soaring fuel prices and the subsequent rise in costs for goods and services nationwide.
On Monday, November 4, protesters gathered at the Nigerian National Petroleum Company Limited, NNPCL, headquarters in Abuja, calling for the removal of the state oil company’s Group Chief Executive Officer, Mele Kyari.
Currently, NNPCL retail stations sell petrol at prices ranging from N1,025 to N1,060, while other fuel stations across the country are charging between N1,115 and N1,300 per litre.
On Friday, November 1, IPMAN hinted at plans to seek alternative, more affordable petrol sources for Nigerians in light of rising ex-depot prices for Dangote Petrol.
Meanwhile, concerned by the continued fuel importation despite local production, Dangote took NNPCL and other marketers to court, challenging their import licenses. However, Dangote later announced that the case had been rendered moot.
Following the launch of Dangote Petrol in September, NNPCL raised fuel prices, and further price increases have since brought petrol costs to between N1,025 and N1,300 per litre.
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