Fuel Scarcity: “We Have 500 Million Litres of Petrol Ready, But Retailers Aren’t Buying” – Aliko Dangote

Aliko Dangote, founder of the Dangote Group, has announced that the Dangote Petroleum Refinery currently holds over 500 million litres of premium motor spirit (PMS), or petrol, aimed at alleviating the ongoing fuel scarcity in Nigeria. However, Dangote has voiced concern that retailers are not collecting the available supply, despite its potential to ease fuel shortages across the country.

After a meeting with President Bola Tinubu and the Presidential Committee on Crude Oil and Refined Product Sales, Dangote revealed that the refinery is positioned to provide ample fuel for the Nigerian market. “With adequate crude supply, we have the capacity to produce over 30 million litres daily,” he said, adding that the refinery is ready to meet the country’s entire demand for PMS if necessary.

“We currently have 500 million litres in our tanks, which would be enough to sustain Nigeria for over 12 days, even without additional imports or production,” Dangote stated, highlighting the refinery’s preparedness.

Unsold Petrol Resulting in Financial Losses

Dangote explained that the storage of unsold petrol is incurring significant costs for the refinery, urging retailers to purchase the stock to alleviate both fuel queues and financial losses for his company. “We’re producers, not retailers. Our role is to manufacture, not distribute,” he said. “Retailers need to step forward and take the products; otherwise, there is little we can do.”

The businessman expressed frustration over the situation, noting, “I am losing money daily by holding half a billion litres of petrol in storage. The cost of maintaining these reserves is substantial, especially considering interest rates.”

Call for Retailers to Prioritize Local Product

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, announced that distribution from the Dangote refinery would begin on September 15, enabling oil marketers to source locally. However, on October 10, the Independent Petroleum Marketers Association of Nigeria (IPMAN) appealed to the Nigerian National Petroleum Company (NNPC) Limited to allow its members to purchase petrol directly from the Dangote refinery at competitive rates or return funds held by NNPC.

According to IPMAN, the NNPC procured PMS from Dangote below N900 per litre but is reselling to oil marketers at increased rates, ranging from N1,010 to N1,050, depending on location. This discrepancy has led to calls for the government to permit direct transactions with local refineries, including Dangote’s.

Following the IPMAN appeal, the federal government recently allowed oil marketers to purchase products directly from the Dangote refinery and other domestic producers, reversing an earlier decision that restricted purchases to NNPC only.