Independent petroleum marketers are demanding direct access to Premium Motor Spirit (PMS) from the Dangote refinery. This push comes as the Nigerian National Petroleum Corporation Limited (NNPCL) tightens its control over fuel distribution.
Marketers Seek Direct Access to Dangote Refinery
Marketers Seek a Competitive Market
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), called for an open and competitive market. He emphasized that NNPC’s “willing-buyer, willing-seller” promise should be upheld. However, recent statements from the Federal Government indicate that NNPC will be the sole buyer of petrol from the Dangote refinery. Independent marketers must source fuel through NNPC.
Dangote Refinery to Begin Operations in September
The Minister of Finance, Wale Edun, announced that Dangote refinery will start producing 25 million litres of petrol daily by September 15, 2024. NNPC will supply crude oil to the refinery, paid for in naira. In return, the refinery will provide PMS and diesel of equal value.
Concerns Over Market Monopoly
Marketers like Ukadike believe that limiting access to NNPC could harm competition. They urge the government to allow direct purchases from the refinery to keep prices fair. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Association, warned that a monopoly could harm the oil and gas sector.
Uncertainty Surrounds Pricing
NNPC has mobilized 300 trucks to distribute PMS from Dangote’s $20 billion Lekki refinery. However, marketers remain uncertain about pricing. Experts estimate that NNPC will buy petrol at N766 per litre from Dangote, with final prices depending on logistics.
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