On Friday, oil marketers revealed that the Dangote Petroleum Refinery sells Premium Motor Spirit (PMS), or petrol, between N1,015 and N1,028 per litre, depending on the quantity purchased. In response, they announced their intention to import petrol and sell it below both the Dangote refinery price and that of the Nigerian National Petroleum Company Limited (NNPCL).
According to data from the Major Energies Marketers Association of Nigeria, as of October 31, 2024, the landing cost of petrol was N978.01 per litre, while diesel and aviation fuel were at N1,069.97 and N1,119.67 per litre, respectively. Landing costs reflect the unit price of imported goods when they arrive on Nigerian shores.
Since the Dangote refinery began distributing locally refined petroleum products, it has refrained from publicizing its prices despite repeated requests. However, a major marketer, requesting anonymity, confirmed, “Dangote is selling to bulk buyers at N1,015/litre, but to smaller buyers at N1,028/litre.” The marketer also noted recent arrivals of three cargoes of petroleum products at Nigerian seaports.
“But imported PMS is cheaper than the cost of Dangote’s own, and that is why he is doing all he can to ensure that the government stops the importation of fuel,” the marketer added.
PETROAN’s Response: Competitive Pricing Planned
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) pledged to sell imported petrol below Dangote’s price. PETROAN Publicity Secretary, Dr. Joseph Obele, explained, “The price of Dangote PMS might be higher because the refinery is still producing with imported crude bought at a premium.”
He revealed that PETROAN had secured agreements with international suppliers to import PMS at around N800 per litre. “PETROAN Limited has been incorporated, licensed by the Corporate Affairs Commission, and we have applied to the NMDPRA for import authority. Once granted, we will import from the best market,” he assured. Obele added, “PETROAN will sell far less than Dangote and NNPCL. NNPC is currently selling to us at N1,040/litre, but our partners are ready to offer better value for Nigerians.”
Independent Marketers Advocate Transparency
In addressing Dangote’s exclusive arrangement with the NNPC, Obele remarked, “NNPC remains the middleman and hasn’t disclosed how much it pays Dangote.” He stressed that the public wants transparency, noting, “All we know is what NNPC sells to us, but their transaction details with Dangote aren’t public.”
Reflecting on the N978/litre landing cost, Obele explained it varies with global oil prices, saying, “Landing costs were around N1,100 last month but dropped due to the recent decline in crude prices. We expect further reductions.”
When asked about potential price adjustments, Obele pointed out that Dangote’s current pricing reflects the cost of an older stock purchased at higher prices. “Now that crude has dropped to $72, we hope for a price review with new stock. But until Dangote refines the recently received naira-for-crude stock, a price reduction isn’t likely.”
IPMAN’s Take on Dangote’s Pricing and Engagement Strategy
The Independent Petroleum Marketers Association of Nigeria (IPMAN) Assistant Secretary, Yakubu Suleiman, agreed that Dangote’s PMS price exceeds that of imports, adding that it hovers around N995. In an interview with Arise TV, Suleiman claimed that limited collaboration with independent marketers had restricted their access to Dangote’s products, attributing this to CEO Aliko Dangote’s fuel supply approach.
In response, Dangote Group’s Chief Corporate Communications Officer, Tony Chiejina, dismissed these reports as “fake news,” declining to confirm the actual price and questioning the origins of the circulated figures. “People are just posting what they like,” Chiejina said.