Marketers Move to Break NNPC's Monopoly, Begin Talks to Lift Petrol Directly From Dangote Refinery
- Independent petroleum marketers have expressed hope that they will soon lift petrol directly from Dangote Refinery
- They disclosed that they will begin talks with the refinery management soon to enable them to sell
- The marketers said they are happy that Dangote is looking away from NNPC as the sole distributor
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Independent petroleum marketers are starting direct talks with the Dangote Petroleum Refinery in Lagos to break NNPC’s monopoly in the petroleum sector, especially in the distribution of Dangote petrol.
The oil marketers have expressed hope that they could lift petrol directly from the Dangote refinery as the product’s scarcity continues.
Source: UGC
Marketers schedule to meet Dangote Refinery
Checks reveal that many petrol stations in Abuja are still shut down due to scarcity three months later.
Vanguard disclosed that Chinedu Ukadike, the public relations officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers hope to reach an agreement with the refinery that would enable them to lift directly from the facility.
Ukadike said a meeting between independent marketers and the refinery’s officials is scheduled this week.
According to him, there was a meeting between Dangote and the IPMAN, saying that the marketers were happy that the refinery had begun to look away from the Nigerian National Petroleum Company Limited (NNPC) as the sole distributor of its product.
Marketers complain about pricing
He said that the Dangote refinery has begun distributing to significant marketers and that independent marketers are hopeful it will soon onboard independent marketers as well.
Reports say Ukadike noted that pricing remains a crucial issue in the distribution of petrol, saying that marketers have to lift the product at a competitive price
He disclosed that the N766 per litre supply from the Dangote refinery is unreasonable, saying that supply will determine the price.
He said that deregulation is about competition and that factors of demand and supply come into play.
NNPC gives reasons marketers cannot lift directly
Legit.ng earlier reported that the NNPC disclosed that marketers cannot yet lift petrol directly from the refinery due to pricing, stressing that the NNPC is the sole off-taker because the price is above the market value.
Also, Refinery owners have stated that with the right interventions from the Nigerian government, the pump price of petrol from Dangote and other refineries could drop below N600 per litre.
The publicity secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, disclosed that the association still firmly believes that local refineries like Dangote and others can crash the petrol price.
Refinery owner's condition for petrol price crash
He disclosed that the N898 per litre the Nigerian National Petroleum Company Limited claimed to have bought the product from Dangote reflects the rising exchange rate.
Idoko said the PMS sold by Dangote since last week was produced from imported crude and locally sourced FX.
He disclosed that the refiners had promised that the petrol prices would drop if the Nigerian government began crude oil sales in naira, saying that the refinery owners still stand by their words.
NNPC crashes Dangote petrol price as marketers lift products
Legit.ng previously reported that many oil marketers have begun purchasing products from the national oil firm, confirming NNPC that independent marketers cannot yet afford Dangote petrol due to its high cost.
Findings show that 11Plc, TotalEnergies, AA Rano, and other independent marketers have begun lifting Dangote petrol via the Nigerian National Petroleum Company (NNPC) Trading Limited to retail outlets nationwide at N765.99 per litre.
According to reports, some petroleum marketers who completed payments on the NNPC trading portal began lifting petrol earlier this week, according to the existing agreement between marketers and the refinery.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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