Oil marketers are increasingly concerned about the delay in announcing the price of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery. They pointed out that the landing cost of imported petrol has now surged to around N1,120 per litre.
Marketers warned that if the Dangote refinery sets a high price for its petrol, it could drive them to import the product independently, given the government’s recent liberalization of the market to foster competition.
In July, the Major Energy Marketers Association of Nigeria (MEMAN) reported a landing cost of N1,117 per litre for imported petrol, which covers the cost of transporting the fuel to Nigeria. During that period, pump prices ranged between N600 and N700 per litre. However, last week, the Nigerian National Petroleum Company Limited (NNPCL) increased prices to between N855 and N897 per litre, with some independent dealers setting prices above N1,000 per litre.
As of Monday, September 9, the prolonged delay in revealing Dangote’s petrol price has led oil marketers to deepen discussions with international partners regarding potential petrol imports. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that the association is in talks with foreign partners while waiting for Dangote’s pricing decision, and noted that a high price from the refinery could prompt large-scale importation of PMS by marketers.
“On the landing cost of petrol, we are waiting for our foreign partners to calculate how much it will cost to bring the product to Nigeria. This is so that independent marketers will also see how to import the commodity. So we are waiting to get the data from them.
“I’ll tell you the actual landing cost once we get the data from our foreign partners. So if the landing cost is cheaper than what the Dangote refinery will sell, then we will see how to bring in the product.
“You know, it is now an open market, so anywhere we see a cheaper rate with good quality, we will buy from there. We don’t know the price of Dangote PMS. We are waiting for the refinery to release the price. However, we are discussing it with our foreign partners,” he said.
Maigandi stressed that allowing multiple importers to bring in PMS would boost supply availability and promote competition in the market.
“One advantage of allowing everyone to bring in the product is that there will be guaranteed availability of products.
“There is also going to be competition. Once this happens, everybody will try to see how they can sell their products and buy another one. It is only when you sell what you have that you can generate profit,” he stated.
An anonymous representative from the Dangote Group, citing a lack of authorization to speak on the matter, revealed that the group’s President, Aliko Dangote, is committed to reducing petrol prices in Nigeria. The official emphasized that Dangote plans to sell petrol locally, irrespective of whether the NNPCL chooses to be the off-taker.
The source described Aliko Dangote as a patriotic figure who is deeply committed to the welfare of Nigerians and is willing to make sacrifices for the greater good. The official also highlighted that the refinery had previously managed to lower the price of diesel from around N1,600 to N950 per litre, although the prices later fluctuated between N1,100 and N1,200 due to foreign exchange volatility.
“When we started diesel, the product was around N1,700. We crashed the price to N1,200 and later, N950, before it now hovers around N1,100 and N1,200. Those who were milking the nation with dirty diesel saw it and they reduced their cost too. We will do it again,” the source stated.
Speaking on whether Dangote can still sell his petrol locally despite the apparent reluctance of NNPCL to collaborate with the refinery, the source responded, “Why not? We are going to sell locally; Alhaji Aliko Dangote is a nationalistic Nigerian; he loves this nation, and he is ready to make sacrifices.
“We will bend for the country. We have high-quality PMS for the country. Some people who are importing fuel and some owners of refineries and blending plants in foreign countries don’t want this to happen. Their $117bn shipping business to West Africa is at stake.”
The official noted that the Dangote Group is still awaiting a response from NNPCL but is prepared to make independent decisions if the state-owned company opts not to collaborate. Currently, there is no agreement between NNPCL and the Dangote refinery on the terms for selling petrol produced by the refinery.
On Saturday, September 7, NNPCL spokesperson Olufemi Soneye clarified in a statement that NNPCL would not purchase petrol from Dangote unless it is priced below international market rates. This stance contradicts Aliko Dangote’s earlier assertions that the refinery was ready for NNPCL to launch its product.
NNPCL further stated that Dangote and other domestic refineries are free to sell their petrol directly to any marketer under a willing buyer, willing seller model, stressing that it has no intention of serving as a distributor for any company in a deregulated market environment.
