Hopes for cheaper petrol in Nigeria have dimmed after petroleum marketers stated that the Dangote Refinery, a $20 billion investment, is not intended to supply low-cost fuel.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed this view in a recent interview with Daily Post, following Dangote Group’s announcement of its fuel price template.
The spokesperson for Dangote Group, Anthony Chiejina, revealed that the refinery’s petrol price would be set between N960 and N990 per litre, depending on whether it’s transported by ships or trucks.
This announcement comes months after the refinery began fuel distribution on September 15, 2024.However, PETROAN’s president, Billy Gillis-Harry, noted that the difference between Dangote’s ex-depot price of N990 per litre and the Nigerian National Petroleum Company Limited (NNPCL) price of N1,025 per litre is minor, failing to make a significant impact that would reduce the importation of petrol.
He added that if Dangote Refinery’s aim had been to benefit Nigerians, its petrol price would have been significantly lower than imported fuel.“There is only a N35 difference between Dangote’s N990 and NNPCL’s N1,025,” Gillis-Harry said.
“This doesn’t amount to meaningful savings for consumers.”IPMAN President Abubakar Maigandi raised concerns that Aliko Dangote, Dangote Group’s founder, may not fully understand the interests of petroleum marketers, particularly the need for them to buy directly from the refinery.
IPMAN, which owns 85% of the filling stations in Nigeria, insists that direct purchases from Dangote Refinery would reduce the cost at their outlets and benefit end-users.
Maigandi suggested that Dangote Group may not be fully aware of IPMAN’s impact in the oil market, noting that any entity attempting to sideline the association is unlikely to succeed.
“We are in a deregulated market, so we can’t question the Dangote pricing,” Maigandi said. “But what we need is to source petrol directly from the refinery, enabling us to offer lower prices to Nigerians.”Meanwhile, high fuel costs continue to drive up the price of goods and services across the country.
Some Nigerians are now taking to the streets in protest.
On Monday, demonstrators gathered outside NNPCL headquarters in Abuja, demanding the removal of Group Chief Executive Officer Mele Kyari.Currently, NNPCL outlets are selling petrol at prices between N1,025 and N1,060, while other fuel stations are charging between N1,115 and N1,300 per litre.
Despite the Dangote Refinery now producing fuel domestically, Nigeria remains reliant on imports.
Major Energy Marketers Association of Nigeria recently disclosed that the landing cost of imported petrol was N978 per litre as of October 31, 2024.
Amid these price challenges, IPMAN is exploring alternatives to source cheaper fuel, potentially offering relief to Nigerian consumers in the future.
