“We’ll Import Fuel and Sell Below Dangote Refinery Price,” Oil Marketers Vow

Oil marketers have disclosed plans to import petrol and sell it below the rates offered by the Dangote Petroleum Refinery, with expectations to set their price point under N1,028 per liter, the current rate for Dangote’s Premium Motor Spirit (PMS). Industry data has shown that the cost of PMS landing in Nigeria is around N978.01 per liter as of October 31, 2024.

Although the Dangote refinery has yet to publicly confirm its pricing, sources within the industry indicate that the refinery’s rates vary between N1,015 for bulk buyers and N1,028 per liter for smaller purchases. This marks the Dangote product as pricier than imported alternatives, sparking interest among marketers eager to offer competitive rates.

Marketers under the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) are pushing to secure licensing to import fuel, claiming partnerships with international suppliers will allow them to offer petrol close to N800 per liter. PETROAN’s Publicity Secretary, Dr. Joseph Obele, stated that their collaboration aims to provide Nigerians with more affordable options, noting that recent approvals have been granted, with the association’s own licensed entity, PETROAN Limited, awaiting regulatory clearance for importation.

“The regulatory body needs to finalize our import permissions. Once we start importing, we’re confident our rates will be significantly below those from Dangote and the Nigerian National Petroleum Company Limited (NNPCL),” Obele said.

He added that Dangote’s higher prices could be due to the refinery processing imported crude acquired when global prices were elevated. Obele urged for more transparency from Dangote and NNPC, who he said had not publicly disclosed their pricing arrangements.

Independent Petroleum Marketers Association of Nigeria (IPMAN) officials also echoed concerns about the refinery’s pricing, noting that their reliance on existing stockpiles bought at previous market highs means there may be a delay before they adjust to recent price drops in the international crude market.

Responding to these claims, Dangote Group’s Chief Corporate Communications Officer, Tony Chiejina, dismissed the reported figures as “fake news” but refrained from specifying an alternative price.