Nigerian marketers are yet to receive petrol lifted from the Dangote Petroleum Refinery, despite its recent commencement of production, due to unresolved pricing issues. This development comes after the Nigerian National Petroleum Company Limited (NNPCL) lifted petrol from the Dangote Refinery on Sunday, September 15, but has not supplied it to marketers.
According to Abubakar Maigandi, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the delay is due to uncertainties surrounding the pricing of petrol produced by the refinery. “We have not been supplied petrol from Dangote Refinery as we wait for the NNPC on pricing,” Maigandi said in a statement. He added, “We are still selling old stocks of petrol. There is still so much uncertainty about pricing or when we will lift Dangote petrol.”
The NNPCL had released pricing details for petrol produced by the Dangote Refinery on Monday, September 16. However, a pricing dispute soon emerged, with the NNPCL stating that it obtained each litre of petrol from the refinery at N898 per litre, a figure disputed by the Dangote Refinery.
Dangote officials clarified that the crude stock used for refining the petroleum was purchased through a combination of dollar and naira transactions. They further noted that full crude oil supplies for refining under the naira-based system will not commence until October. This discrepancy has contributed to the ongoing delay in the distribution of petrol to marketers.
The situation has led to significant concern within the petroleum industry, as marketers rely on new supplies to meet the increasing demand across Nigeria. Currently, petrol prices vary across different regions, with reports of prices exceeding N1,000 per litre in some areas, while other locations see petrol selling at around N950 per litre.
The start of operations at the Dangote Petroleum Refinery, located in Lagos, had been met with widespread optimism, as it was expected to ease Nigeria’s fuel supply challenges and reduce dependence on imported petroleum. However, the current pricing issues and delays in supply have dampened the initial excitement.
Marketers are now urging the NNPCL and Dangote Refinery to resolve the pricing dispute as quickly as possible to ensure steady supply and stability in the market. Until then, they continue to sell from old stocks of imported petrol.
The Dangote Refinery, which has a production capacity of 650,000 barrels per day, is a significant development in Nigeria’s energy sector. It is expected to help the country meet its local fuel demands and potentially export refined products to other African nations. However, challenges such as pricing and distribution need to be addressed to maximize its potential benefits.
The pricing controversy comes at a critical time for Nigeria, as citizens continue to face high fuel costs, which are affecting transportation, the cost of goods, and daily living expenses across the country.
