Finally, Major Marketers Begin Lifting Petrol from Dangote Refinery, Set to Compete with NNPCL
- Following a new agreement, major petroleum marketers have started lifting petrol from the Dangote Refinery in Lagos
- The marketers lament not having a direct arrangement with the refinery but having to depend on the NNPCL for supply
- Reports show that, unlike the major marketers, independent marketers are yet to commence lifting of petrol for distribution
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Nigerian National Petroleum Company Limited (NNPCL) has granted major petroleum marketers permission to lift premium motor spirit (PMS), commonly called petrol, from the Dangote Petroleum Refinery under their current agreement.
This follows earlier opposition by marketers to NNPCL's complete control of the distribution of the petrol refined at the Dangote Refinery.
According to the original deal, NNPCL is the exclusive distributor of petrol produced by the refinery.
Source: UGC
The first shipment consisted of 16.8 million litres, which NNPCL’s retail division transported.
Last week, Legit.ng reported that the NNPCL had halted the sale of petrol to independent marketers after raising the price of PMS to N855 and above per litre at its retail outlets across the country.
However, several major marketers, including 11 Plc, have recently collected the product for distribution to their outlets in Lagos and various other regions across the country.
One of the marketers, who pleaded anonymity, said:
“I can confirm that we have some major marketers already lifting from the Dangote Refinery, but it is still under the NNPC arrangement with the refinery, in other words, we are lifting NNPC product from the Dangote refinery. It is not our product. We have no direct arrangement with the refinery.”
It was gathered that independent marketers have not been incorporated into the revised arrangement.
Despite the commencement of petrol distribution from the Dangote Refinery, petrol pump prices in Nigeria have skyrocketed.
In a phone interview with Vanguard, Alhaji Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that only NNPCL has access to fuel from the Dangote Refinery, with the majority of the product being supplied to their retail outlets.
He also mentioned that independent marketers are not yet purchasing from NNPCL under the Dangote Refinery agreement.
He stated:
“Independent marketers are waiting for NNPCL to give the new price of the petroleum products in order to lift from them. We load at the old rate of N875 per litre as most of our members have outstanding stock with NNPCL; we were told that they will be cleared this week.”
Due to the agreement designating NNPCL as the exclusive off-taker of petrol from the Dangote Refinery, marketers have indicated that they may need to import fuel to sustain their operations.
As a result, they have called on the federal government to fully liberalize the sector for all participants.
NNPC unveils six new locations for CNG
In related news, Legit.ng reported that NNPC Ltd has called on Nigerians to consider switching to Compressed Natural Gas (CNG).
The NNPC has ramped up efforts to expand the availability of CNG at its filling stations nationwide amid rising petrol prices.
The company said CNG stations are now available in Abuja at Gaduwa, Wuse, Gudu, Dei Dei, Ushafa, and Gwagwalada.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
