Independent Petroleum Marketers in Talks with Dangote Refinery Amidst Ongoing Price Controversy
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that negotiations are still underway with Dangote Refinery regarding the terms for the lifting of petrol, amidst a backdrop of controversy regarding fuel pricing. Aliko Dangote, the president of the refinery, has accused the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum marketers of importing petrol from foreign sources instead of sourcing it from his facility, despite having 500 million litres of petrol stored, which he claims is more than enough for domestic consumption.
According to Chief Chinedu Ukadike, the Public Relations Officer of IPMAN, independent marketers have not yet begun sourcing petrol directly from the Dangote Refinery, although discussions are progressing. He stated, “We haven’t received any products from Dangote Refinery at this moment, but the processes are already in motion. I will provide updates as soon as they are finalized.” Ukadike also highlighted that the product is not currently available to independent marketers and speculated that Dangote may be adopting a measured approach to marketing.
In light of recent developments, Ukadike remarked on a recent increase in petrol prices announced by the NNPCL, indicating that such a rise should not come as a surprise under the current market conditions. He explained, “People should not be taken aback. Deregulation is influenced by the principles of supply and demand, and the source of your supply can determine the selling price.”
Despite a N30 per litre increase in petrol prices, marking a 3% rise to N1,060 per litre in Abuja, many marketers have retained their pricing from early October. Investigations in Abuja revealed that major marketers like Conoil and TotalEnergies are still selling petrol at N1,109, while other companies such as NIPCO (N1,115), Adova Plc (N1,125), and numerous independent marketers are offering prices ranging from N1,150 to N1,230, consistent with their October pricing.
The NNPC had previously raised petrol prices by 14.8% on October 9, 2024, adjusting the cost from N897 to N1,030 per litre, following the Federal Government’s decision to eliminate the petrol subsidy. This latest increase came as a surprise given expectations that the “crude-for-Naira” agreement between the Federal Government and Dangote Refinery would lower pump prices starting October 1, 2024. Additionally, a notable price increase occurred on September 3, 2024, when NNPC raised the petrol price by a staggering 45%, from N617 to N897 per litre.
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