The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over the pricing of petrol from the Dangote Refinery by the Nigerian National Petroleum Company Limited (NNPCL).
The association argues that it makes no sense for petrol produced locally by Dangote to be sold at a higher price than imported fuel.
John Kekeocha, the National Welfare Officer of IPMAN, expressed this frustration during an interview on Channels Television’s The Morning Brief program on Monday.
He questioned the logic behind NNPCL selling petrol lifted from the Dangote Refinery at a price higher than imported petrol.
Kekeocha asked, “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?”
This issue has caused confusion and concern among marketers and the general public, as many had expected the Dangote Refinery to ease the pressure on Nigeria’s fuel supply and reduce prices.
The Dangote Refinery, a privately owned $20 billion facility, began operations in December 2023 with a capacity of 350,000 barrels per day.
The refinery is projected to reach its full production capacity of 650,000 barrels per day by the end of the year.
On Sunday, the NNPCL started lifting the first batch of petrol from the Dangote Refinery. The state oil company claimed that it purchased the petrol at N898 per litre from Dangote.
This price has sparked controversy, as it is significantly higher than the price of imported fuel.
Before the petrol from the Dangote Refinery entered the market, NNPCL retail outlets in Lagos sold petrol for around N855 per litre.
However, with the new supply, the price has increased to N950 per litre in Lagos and as high as N1,019 per litre in Borno State, a northern region of the country. This sharp price hike has left many Nigerians baffled.
The Dangote Refinery has since denied the NNPCL’s claim that it sold petrol at N898 per litre. Anthony Chiejina, a spokesman for the Dangote Refinery, described the NNPCL’s statement as “misleading and mischievous.”
According to Chiejina, the Dangote Refinery sold the petrol to NNPCL in dollars, which led to significant cost savings compared to the prices of imported petrol.
Chiejina added, “It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing.
With this action, there will be petrol in every local government area of the country regardless of their remote nature.”
Despite the denial from Dangote Refinery, the NNPCL insists that it purchased the petrol at the stated price of N898 per litre.
The state-run company challenged the Dangote group to release the actual price at which it sold the petrol to them.
To support its claim, the NNPCL published a breakdown of the prices at which it sells petrol from the Dangote Refinery at its filling stations across Nigeria.
The disagreement between NNPCL and Dangote has added to the fuel supply and pricing crisis that has been plaguing Nigeria for years.
The country, despite being a major crude oil producer, has been heavily reliant on imported refined petroleum products due to the failure of its state-owned refineries, all of which remain non-operational.
