As discussions continue over the potential lifting of petrol from Dangote Refinery, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that they are still in negotiation with the refinery on terms and processes. This statement comes as Aliko Dangote, President of the Dangote Refinery, expressed concerns that the Nigerian National Petroleum Company Limited (NNPCL) and other marketers have opted to source petrol from foreign refineries instead of lifting from his facility.
Dangote revealed that the refinery currently holds a stock of 500 million liters of petrol, reportedly sufficient to meet domestic demand. Despite this, independent marketers have yet to receive fuel from the facility, with IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, confirming that direct sourcing is not yet underway. “The processes are ongoing,” Ukadike said, assuring that updates would be provided once terms are finalized. He also suggested that Dangote might be employing a “systematic marketing approach” to supply distribution.
In a related statement, Ukadike addressed the recent pump price hike initiated by NNPCL, emphasizing the role of deregulation in the pricing fluctuations. “People shouldn’t be surprised,” he remarked, explaining that deregulation and market forces naturally influence supply costs and, consequently, pump prices.
Despite the latest NNPCL adjustment, which raised the pump price of petrol by N30 per liter to N1,060 in Abuja (a 3% increase), many marketers have held to October price levels. Major stations like Conoil and TotalEnergies continued to sell at N1,109 per liter, while others, such as NIPCO and Adova Plc, marked up to N1,115 and N1,125 respectively. Prices among independent marketers hovered between N1,150 and N1,230 per liter.
This follows an earlier price hike on October 9, when NNPCL raised petrol costs by 14.8% from N897 to N1,030 per liter in response to the Federal Government’s subsidy removal. This decision was met with public concern, particularly as the government had previously signaled that the “crude-for-Naira” agreement with Dangote Refinery would help stabilize or reduce petrol prices beginning in October. Despite these expectations, NNPCL has continued to adjust rates in line with global crude prices and domestic supply dynamics.
In September, NNPCL also made a significant price increase of 45%, bringing the per-liter rate from N617 to N897, intensifying the strain on consumers amid the broader economic climate.
As IPMAN and Dangote Refinery continue discussions, fuel pricing remains a topic of public and political interest. While Dangote has voiced his desire to contribute to the local supply chain, regulatory dynamics and the alignment of supply processes are likely to influence how soon his refinery’s output will enter the Nigerian market and affect prices.
