Marketers Seek Direct Deal with Dangote Refinery Amid NNPC’s Dominance

By Stephen Asaba-ase

Independent petroleum marketers are demanding direct access to Premium Motor Spirit (petrol) from the Dangote refinery, criticizing the Nigerian National Petroleum Corporation’s (NNPC) firm grip on the market.

The marketers argue that the market should be liberalized, allowing for willing-buyer and willing-seller transactions, as previously committed to by the NNPC.

However, the Federal Government announced that the NNPC would be the sole buyer of petrol from the Dangote refinery, sparking concerns among marketers.

The Minister of Finance, Wale Edun, revealed that the Dangote refinery would commence petrol distribution to marketers on September 15, 2024, with an initial 25 million liters per day.

Marketers expressed concerns over the risks of creating a new domestic monopoly in the oil and gas sector, citing the lack of transparency in pricing templates and matrices.

The NNPC mobilized 300 trucks to lift petrol from the Dangote refinery on September 15, 2024, with the price set at N766 per liter.

Marketers confirmed that they would buy the commodity from the NNPC for now, with the possibility of direct purchases from Dangote in the future.

The pump price may reduce if marketers can obtain the product at N766 per liter, considering transportation costs, levies, and other margins.