Dangote Petrol: Oil Marketers Give Condition To Crash Fuel Prices at Filling Stations

Dangote Petrol: Oil Marketers Give Condition To Crash Fuel Prices at Filling Stations

  • Independent Petroleum Marketers Association of Nigeria claims petrol from Dangote Refinery is priced higher than other suppliers
  • The filling station owners urge Dangote Refinery to engage with industry stakeholders to reduce prices and facilitate
  • The marketers believe that such a reduction will affect the prices of petrol at filling stations in the country

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that fuel pump prices could drop if the Dangote Petroleum Refinery lowers its prices.

According to the marketers, the cost of sourcing fuel from the facility is higher than other suppliers.

Petrol prices in Nigeria continue to soar
Filling stations owners express readiness to crash petrol prices Photo credit: Bloomberg/contributor
Source: Getty Images

Speaking on Arise Television’s Morning Show, Yakubu Suleiman, IPMAN’s national assistant secretary, claimed that independent marketers will always choose to buy cheaper products.

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Suleiman explained:

“If Dangote has a product selling for N1,000, let’s assume, and there’s another place selling for N900, we can’t just say, for the sake of our relationship with Dangote, that we’ll instruct our members to buy there. We must go where the price is lower, where we’ll get profit."

IPMAN also alleged that despite falling crude prices, Dangote Refinery did not reduce its petrol to N995 per litre.

Suleiman stressed that the additional costs make it difficult for IPMAN members to sell at competitive prices but promised that changes will occur if adjustments are made, BusinessDay reports

He said:

“We have to pity Nigerians, IPMAN is trying its best to support the country, especially at this difficult time when people are suffering. We want to source cheaper products to sell at affordable prices for the people.”

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IPMAN gives conditions to reduce petrol prices

IPMAN is seeking to engage in direct discussions with major industry stakeholders, including the Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN), to find practical solutions for cheaper fuel distribution, which would, in turn, impact pump prices.

He noted:

“If Dangote sold directly to IPMAN at a fair price, fuel costs would have come down in Nigeria by now,” Suleiman emphasized.

He argued that allowing IPMAN to purchase at a reduced price could lead to a rapid decrease in pump prices across Nigeria’s independent filling stations.

“We’d go straight to his refinery, pay N995 or N900, and transport it directly to our filling stations. I challenge you—if Dangote did this, you would see prices drop at our retail stations within days."

Dangote Refinery, Africa’s largest oil refinery, is seen as crucial to helping reduce Nigeria’s fuel prices.

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Azikiel Refinery concludes plans to roll out petrol

Legit.ng earlier reported that the president of Azikel Group, operators of the Azikel Modular Refinery in Bayelsa, Azibapu Erunani, has disclosed that the facility is unique as it is the only one in Sub-Saharan Africa to refine condensate in addition to petrol, diesel, and aviation fuel.

He disclosed this when the Bayelsa state governor, Duoye Diri, visited the refinery complex in Yenogoa.

Erunani said the facility is worth over $850 million and has about 400 foreign and local employees.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

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Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.