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Petrol rising cost: Marketers write Dangote over bulk purchase deal

Ademola Damilola by Ademola Damilola
October 31, 2024
in In the News, News
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Petrol rising cost: Marketers write Dangote over bulk purchase deal
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The continued rise in petrol prices in Nigeria has led oil marketers to urge the Dangote Petroleum Refinery for direct access to refined products, highlighting frustrations around current supply delays and the dependency on imported fuels. Following Aliko Dangote’s recent statements questioning why marketers were still importing fuel despite domestic availability, major groups like the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) reaffirmed their willingness to buy fuel locally, pending clarity on purchasing processes and logistics.

However, marketers face difficulties, with PETROAN requesting a formal business meeting with the Dangote Refinery to outline purchasing protocols, and IPMAN members reporting four-day delays in accessing fuel, despite a collective N40 billion prepayment via the Nigerian National Petroleum Company Limited (NNPCL). IPMAN also raised concerns over the refinery’s prioritization of marketers with import licenses, a policy possibly tied to the refinery’s free trade zone status. The IPMAN National President suggested that allowing independent marketers direct access to the refinery could streamline distribution and reduce the nation’s import reliance.

Energy expert Professor Wumi Iledare proposed government waivers for Dangote’s refinery to simplify domestic sales without violating the free trade zone regulations, warning that the current structure risks making the refinery’s output a near-monopoly. He also noted that Dangote’s strategic location and capacity have attracted interest from other African nations, further intensifying competition for Nigerian marketers.

Meanwhile, new shipments of petroleum have arrived at Lagos ports to help meet immediate demands, but Dangote’s refinery reportedly underdelivered on its NNPCL fuel supply targets in recent months, heightening concerns about sustainable fuel access.

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