Oil marketers announced that the price of petrol from the Dangote Petroleum Refinery ranges from N1,015 to N1,028 per litre, depending on the quantity purchased.
In response on Friday, dealers plan to import petrol and sell it below both the Dangote price and that of the Nigerian National Petroleum Company Limited, according to The Punch.
Recent data from the Major Energies Marketers Association of Nigeria indicates that the landing cost of petrol was N978.01 per litre as of October 31, 2024.
It stated that the landing cost of diesel was N1,069.97/litre, while that of aviation fuel was put at N1,119.67/litre.
The landing cost of petroleum products refers to the unit price of these imports upon arriving in Nigeria.
Since the Dangote refinery began domestic distribution, it has not disclosed the price of its refined petrol, despite multiple requests.
However, an anonymous major marketer revealed that the price of petrol from the Dangote refinery is higher than that of imported PMS.
According to the official, the refinery currently sells to oil marketers making bulk purchase at N1,015/litre and small buyers at N1,028/litre.
The major marketer also noted that three cargoes of petroleum products recently arrived and were discharged at various seaports along Nigeria’s borders.
“Dangote is selling to bulk buyers at N1,015/litre, but to marketers who are not buying in bulk, the refinery is selling at N1,028/litre.
“But imported PMS is cheaper than the cost of Dangote’ own, and that is why he is doing all he can to ensure that the government stops the importation of fuel,” the dealer stated.
Speaking, marketers under the Petroleum Retail Outlet Owners Association of Nigeria pledged to sell imported petrol at prices lower than those offered by the Dangote refinery.
They also stated that their prices would be cheaper than those set by the NNPCL.
The PETROAN Publicity Secretary, Dr Joseph Obele stated that the higher price of petrol from the Dangote refinery might be due to the fact that it is still using imported crude oil purchased at a premium.
He noted that the association had secured agreements with international fuel suppliers to import petrol at competitive prices, with expectations that the product would arrive in Nigeria at around N800 per litre.
Obele said “PETROAN is an association, but we have incorporated our limited liability company called PETROAN Limited. We have got the licence from the Corporate Affairs Commission, and we have applied to the NMDPRA to licence us and give us authority to import. So, as we get that authority to import, I think we will import from the best market.
“And it is good also for the general public to understand that the landing costs in all the nations are not the same. PETROAN has got a partner from the international market, that the product will arrive here at close to N800/litre. So, since PETROAN has the best value for Nigerian citizens, we are calling on the regulatory agency to release our authority to import in no distant time so our first stock will come in.
“And we assure you that PETROAN will sell far less than Dangote. It will sell at prices far less than NNPC. Right now, NNPC is selling to us at N1,040/litre. PETROAN will not sell like that, because we have negotiated. And all our partners and foreign counterparts are on standby to make sure we give Nigerians the best value.”
The association’s spokesperson mentioned that while he couldn’t disclose the exact quantity to be imported, he emphasized that petrol imported by PETROAN would be cheaper.
Obele clarified that Dangote sells directly to NNPC, which then sells to marketers.
“I am telling you that that the position of NNPC as a middleman is still active till tomorrow. NNPC has refused to announce how much Dangote is giving. Dangote has also refused to announce how much he is selling to NNPC. So, I think there is an agreement that they don’t announce it.
“All we know is how much NNPC is selling it to us. However, the transaction between the two is not in the public domain. NNPC has refused to mention it. And the general public has said, please make these things open,” he said.
Speeaking on the landing cost of N978/litre, he emphasised that the landing cost differs from country to country.
“N978 to N1,000, that’s the landing cost. It was about N1,100 as of last month. But because of the drop in the selling price of crude oil in the international market, PMS has witnessed a downward review in the international market too. So, I think we should also witness a downward review,“ he said.
When reminded that the NNPC just jerked up its price, Obele responded, “No, the issue we have is that the only functional refinery we have is the Dangote refinery. And Dangote has announced to everyone who wants to hear that the crude oil stock he is still working on was the one he bought from the international market; that the naira-for-crude stock, he has not started refining that. So, we don’t expect a downward review from someone who bought old stock when crude oil was selling for $80 and $78 per barrel.
“So, now that it has dropped to $72, we are not expecting to review the price automatically. Because you can put it to us that it is still trading with the old stock. But recently, the price of crude oil has dropped. We hope that whoever is buying the new stock of this new trade should review the price downward. But if what Dangote has used to refine the stock available is the old stock got when crude oil was still selling at $80 per barrel, we don’t expect him to review downward.
“Until the refinery commences production with the stock it just received last week in naira, that’s when people can criticise it. But at the moment, I think the selling rate reflects the former cost of crude oil.”
The National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria,Yakubu Suleiman, confirmed that the cost of petrol from Dangote is currently higher than that of the imported commodity.
In an interview with Arise TV on Friday, Suleiman stated that the price of petrol from the Dangote refinery is set at around N995, making it higher than that of imported commodities.
He also criticized the CEO of the refinery, Aliko Dangote for sidelining key stakeholders in the fuel supply strategy, arguing that the limited engagement with independent marketers has hindered their ability to access petrol from the facility.
