The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed that negotiations are ongoing with Dangote Refinery regarding direct sourcing of petrol, amidst recent controversy over lifting from the facility. IPMAN noted they have not yet begun purchasing from the refinery.
Alhaji Aliko Dangote, President of Dangote Refinery, recently expressed disappointment, alleging that both the Nigerian National Petroleum Company Limited (NNPCL) and independent petroleum marketers have been importing fuel rather than lifting available stock from his facility. He disclosed that his refinery holds 500 million litres of petrol in storage, enough to meet Nigeria’s domestic needs.
In response, IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, explained to Vanguard that discussions with Dangote Refinery are progressing, but final terms for product sourcing have not been settled. “We haven’t received products from Dangote Refinery yet, but the processes are underway, and I’ll update you once they’re finalized,” he stated, adding that the refinery’s product is “not yet available to independent marketers.”
Ukadike speculated that Dangote may be adopting a “systematic marketing approach” but reassured that negotiations continue.
Regarding NNPCL’s recent petrol price hike, Ukadike remarked, “People shouldn’t be surprised. Deregulation is driven by demand and supply factors, and your supply source will dictate the selling price.”
Despite NNPCL’s 3% increase to N1,060 per litre in Abuja, many marketers have maintained prices established in early October. In Abuja, for instance, Conoil and TotalEnergies have held steady at N1,109 per litre, while NIPCO (N1,115), Adova Plc (N1,125), and various independent marketers (N1,150-N1,230) are selling at October rates.
Earlier, NNPC raised petrol prices by 14.8% on October 9, 2024, moving from N897 to N1,030 per litre following the Federal Government’s subsidy removal. This was contrary to expectations of a price decrease based on the “crude-for-Naira” deal with Dangote Refinery, intended to begin on October 1, 2024. The recent price adjustments follow a series of increases, including the 45% jump on September 3, 2024, which pushed prices from N617 to N897 per litre.