The Independent Petroleum Marketers Association of Nigeria has expressed concern over the pricing of petrol sourced from the Dangote Refinery, calling on the Nigerian National Petroleum Company Limited to ensure that locally refined fuel is not sold at higher rates than imported alternatives.
IPMAN argued that pricing disparities could undermine Nigeria’s goal of achieving energy self-sufficiency and would negatively affect both consumers and fuel marketers.
Speaking on the matter, IPMAN highlighted the importance of competitive pricing for the success of the Dangote Refinery.
They urged that the pricing strategy for petrol refined domestically should reflect the cost benefits of local production, ensuring that Nigerian consumers have access to affordable fuel.
“The NNPC selling Dangote products at a higher price than imported fuel defeats the purpose of the refinery’s establishment,” IPMAN’s National Welfare Officer, John Kekeocha, remarked during an appearance on Channels Television’s ‘The Morning Brief’ on Monday.
He emphasized, “If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense. What is the celebration we are having all these while then?”
NNPCL began loading its first batch of petrol from the Dangote Refinery on Sunday, reporting that it acquired the fuel at N898 per litre. However, confusion arose as Dangote Refinery disputed this claim.
According to a spokesperson for the refinery, Anthony Chiejina, NNPCL’s statement was “misleading and mischievous,” asserting that Dangote sold its petrol to NNPCL in dollars, allowing for significant savings compared to imported fuel.
Chiejina added that this arrangement would ensure petrol availability in every local government area across Nigeria, regardless of their remoteness.
Before the loading of Dangote petrol began, NNPCL’s retail outlets in Lagos sold petrol at approximately N855 per litre. Following the refinery’s supply, the price rose to N950 per litre in Lagos, with prices reaching N1,019 per litre in Borno.
In response, NNPCL stood by its claim that the petrol was sourced from Dangote at N898 per litre, challenging the refinery to disclose its actual selling price.
To bolster its case, NNPCL released a breakdown of Dangote petrol pricing at its filling stations nationwide.
Dangote Refinery, which began operations at its $20 billion facility in Lagos in December 2023, is designed to process up to 650,000 barrels of crude oil daily.
Initially entangled in regulatory disputes, the refinery is currently producing diesel, aviation fuel, and now petrol for the Nigerian market, with plans to reach full capacity by the end of the year.
Nigeria, despite being Africa’s most populous country, struggles with energy challenges, as none of its state-owned refineries are operational.
Consequently, the nation relies heavily on imported petroleum products, with NNPCL serving as the primary importer.
Following the removal of fuel subsidies in May 2023, the cost of petrol has surged, from around N200 per litre to over N1,000, exacerbating the burden on citizens, especially those reliant on petrol for transportation and power generation amid the country’s erratic electricity supply. Fuel shortages and long queues at filling stations remain a common occurrence.
