The 650,000 barrels per day Dangote refinery in Lagos, Nigeria, has disregarded the demand from oil marketers to immediately discontinue selling its Premium Motor Spirit (petrol).
This was exclusively revealed in two interviews by the presidents of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, and the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi.
This coincides with a report that surfaced on Monday stating that the Nigerian National Petroleum Company Limited has resigned from its position as Dangote Petrol’s exclusive off-taker.
Nigerians and oil traders are left in limbo by the situation.
Speaking about the development, Maigandi stated that IPMAN’s attempts to meet with the management of Dangote Refinery had been unsuccessful.
“We haven’t had a meeting or received input from Dangote Refinery regarding direct sales of its fuel until today, Monday.
“Since we are unable to purchase Dangote Petrol directly, we are unable to discuss its price,” he stated.
He mentioned that if Dangote Refinery consents to sell the product directly to oil marketers, the price of gasoline—which now ranges from N950 to N1,200 per liter—will be lowered.
“If Dangote refineries sell gasoline to us directly, there will be a slight price reduction,” he continued.
When questioned, NNPCL stated that, depending on the area, it sells gasoline to its marketers for between N840 and N870 per liter. We retail in Abuja for N950.
Regarding NNPCL’s departure from its position as the exclusive off-taker of Dangote Petroleum, Maigandi emphasized that, “We’re waiting to hear from Dangote Refinery,” regarding our ability to lift petroleum directly.
Gillis-Harry reiterated Maigandi’s stance regarding Dangote Refinery’s reluctance to sell its gasoline to marketers directly.
He claims that even though petroleum marketers have made an effort to speak with Dangote Refinery about business, they have not been given the go-ahead.
“As of right now, we haven’t received approval from Dangote Refinery to proceed with our business discussion regarding direct gasoline lifting,” he stated.
When asked about the situation by a writer, Anthony Chiejina, the spokesperson for the Dangote Group, responded, “I am not aware.”
The Dangote Refinery stated on September 15 that it would begin distributing its gasoline, with NNPCL serving as the only customer.
Dangote Petrol announced a new gasoline price increase of between N950 and N1,100 per litre across all of its retail outlets last month.
The fuel price modifications came on the back of NNPCL stance that it bought Dangote petrol at N898 per liter, however, Dangote disagreed.
The oil company, which is owned by Aliko Dangote, the richest man in Africa, had made hints that the Presidential Implementation Committee on Naira-for-Crude Sales will be announcing the price of gasoline at the pump.
Nevertheless, even after the Nigerian government launched the Naira-for-crude program with an anticipated supply of 24 million barrels by October and November of 2024, the cost of Dangote Petrol has remained a subject of controversy.
The House of Representatives pushed Dangote Refinery to permit oil traders to directly lift its gasoline last month.
Refiners and marketers had previously intimated that the start of the Naira-for-crude sales agreement with Dangote Refinery and other refineries would result in a decrease in the price of gasoline at the pump.
