The dispute surrounding the Dangote Refinery Premium Motor Spirit (petrol) pricing, which was made public by the Nigerian National Petroleum Company Limited on Monday, has left Nigerian petroleum merchants in a state of uncertainty, they claim.
This occurs in response to demands made by the petroleum marketers for transparency over Dangote Refinery’s price disclosure for the gasoline it sold to NNPCL.
Marketers also pointed out that the nation’s daily gasoline demand, which was N50 million based on the most recent statistics from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, could not be met by local petroleum output.
This demand was made in separate interviews with newsmen on Monday by Abubakar Maigandi, the president of the Independent Petroleum Marketers Association of Nigeria, and Billy Gillis-Harry, the president of PETROAN, the Petroleum Products Retail Outlets Owners Association.
An more increase in fuel prices is imminent
Remember that on Monday, NNPCL released a list of Dangote Petrol retail rates for all of its locations across the country.
According to the updated fuel rates, a liter of gasoline in Lagos State will cost N950.22. The cost of gasoline in Oyo and other South West states is N960 per liter.
The cost of a liter of gasoline in Kano, Kaduna, and the Federal Capital Territory (Abuja) is N999.22.
Petrol prices in Imo and Rivers states would also be N980.2 per liter, while Borno State will pay N1,019.22.
Despite reports on Monday suggesting that the new rates are unaffected, gasoline prices at the pump could soon increase nationwide.
It was noted that NNPCL has not yet disclosed the price at which it will sell marketers—the proprietors of the vast majority of filling stations in Nigeria—Dangote Refinery Petrol.
The cost of gasoline at Independent Marketers’ filling stations is typically more than N100 more than that of NNPCL retail locations, meaning that a liter of fuel might cost up to N1,200.
Dangote Fuel Price Scandal
Over the weekend, Dangote Refinery started distributing gasoline for the first time, with NNPCL serving as an official offtaker.
According to NNPCL, they were charged N898 per liter for gasoline supplied by Dangote Refinery.
Dangote Group, on the other hand, criticized NNPCL while withholding the full cost of its first gasoline sale.
The dispute around gas prices that followed the development made the industry’s predicament worse.
Why Dangote Refinery ought to notify marketers of the price of fuel – Gillis-Harry:
In response, Gillis-Harry, the president of PETROAN, demanded complete transparency in the oil and gas industry.
As per his statement, before marketers buy the product, the Dangote Refinery must disclose to all relevant parties the precise cost of its gasoline.
Given that NNPCL has disclosed the selling price, Dongote Refinery ought to inform us of the price at which it is selling gasoline.
“We ought to be able to precisely determine the price that Dangote Refinery Petrol is charging us. We ought to be aware of NNPCL’s approach to us. We are currently in a state of uncertainty,” he said to reporters.
IPMAN: NNPCL has not yet disclosed the pricing of Dangote Petrol to marketers.
The president of IPMAN, Maigandi, stated that he is awaiting the NNPCL to disclose the rates at which it will offer Dangote Petrol to distributors.
He voiced his discontent with the current state of affairs in the industry due to the disparate fuel prices set by NNPCL and Dangote Refinery.
“We are waiting for NNPCL to release prices that independent marketers will be buying petrol. They have not.
“We are buying directly from NNPCL, not Dangote Refinery. Marketers can cope without any rate.
“We, marketers, are not happy with the high cost of petrol because you have to use a huge amount of money to get the product.
“Dangote Refinery has established its facility, let the government try to make the other refineries function, this may lead to a reduction in the prices of petrol”, he told newsmen.
Nigeria cannot rely solely on the Dangote Refinery – Marketers
In response to a question regarding potential import substitution in light of the high cost of Dangote Refinery gasoline, Gillis-Harry stated, “Dangote Refinery produces approximately 25 million liters per day.” That is less than one cargo, at roughly 15,000 metric tonnes.
“And NNPCL has been selling so many cargoes to depot owners, including our members, to distribute to Nigerians previously.
“What it means is that we’re not going to be dependent on the petrol product that is produced in-country. There must be a level of importation to make up for the difference.”
