The Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery are currently at odds over the pricing of Premium Motor Spirit (PMS), commonly known as petrol, produced by the refinery. NNPCL had claimed that the refinery was selling petrol at ₦898 per litre, but Dangote Refinery has refuted this, stating that a final price has yet to be determined.
On Sunday, NNPCL spokesperson Femi Soneye told newsmen that the company had already loaded 70 trucks of petrol from the refinery, pricing it at ₦898 per litre. However, Dangote Refinery released a statement later that evening, strongly denying the claim. Anthony Chiejina, Chief Branding and Communications Officer for Dangote Group, labelled the statement from NNPCL as “misleading and mischievous,” urging the public to await an official announcement from the Technical Sub-Committee on Naira-based crude sales, scheduled to commence operations on October 1, 2024.
Chiejina further clarified that the refinery has been selling its products in dollars, resulting in significant cost savings compared to imported fuel prices. He reassured Nigerians that the refinery’s operations would enhance fuel availability nationwide, alleviating the recurring fuel scarcity issues.
Earlier, Soneye confirmed that NNPCL had successfully loaded PMS from Dangote Refinery, adding that the product’s pricing, as reported in some quarters, was inaccurate. He stated, “We loaded PMS today at Dangote Refinery, and the price is ₦898 per litre, not ₦1,300 as rumored. We have so far loaded over 70 trucks, and we are expecting a total of 16.8 million litres.”
However, industry expert Henry Adigun criticized the situation, arguing that the lack of transparency and a one-off-taker policy—where NNPCL is the sole buyer—creates uncertainty around the entire process. Adigun emphasized that the absence of policy harmonization violates the Petroleum Industry Act (PIA), which mandates a free market and competitive pricing.
In addition, Elder Chinedu Okoronkwo, the former president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), called for a more sustainable strategy to ensure equitable access to products across Nigeria. Okoronkwo, who now serves as the IPMAN Board of Trustees treasurer, noted that the association controls 80% of the market and expressed concern about being sidelined in product distribution.
An anonymous industry source criticized NNPCL’s involvement, accusing the company of promoting a monopoly by being the sole off-taker of Dangote’s crude and PMS products. The source further alleged that this approach discourages competition and undermines investment in the oil sector.
It was also revealed that the initial 300 trucks sent to Dangote Refinery to load petrol came from members of the Major Energy Marketers Association of Nigeria (MEMAN), including Ardova, TotalEnergies, NNPC retail, NipCo, MRS, and 11Plc, each contributing 50 trucks. That number has since increased to 500 trucks.
Meanwhile, the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN) has reportedly not been invited to participate in lifting products from Dangote Refinery. Sources within the association suggested they would reject any invitation unless product loading could be handled in bulk, allowing marketers to transport products via ships to various depots nationwide. If their concerns are not addressed, DAPPMAN members may resort to importation, citing a lack of competitive pricing from the refinery.
In a related development, Nigeria continues to rely heavily on road tankers for fuel distribution, with approximately 80% of petroleum products transported via road. This practice has led to significant challenges, including frequent accidents, delays at security checkpoints, and the deterioration of road infrastructure. Damage to the country’s pipelines, mainly due to vandalism, has left much of the network inoperative, worsening the strain on the road system.
Analysts have called for a more diversified approach to fuel transportation, advocating for the development of pipeline and rail systems to ease congestion and improve safety. Despite the extensive network of pipelines, Nigeria’s reliance on trucks—many of which lack proper safety features—has created an unsustainable and risky fuel distribution framework. Rising trucking costs, compounded by inflation and exchange rate pressures, have driven the cost of transporting petrol from ₦7 million in May to ₦25 million recently.
Marketers Lift Over 500,000 Metric Tonnes of Diesel and Jet A1 from Dangote Refinery
Despite the ongoing dispute over petrol pricing, investigations reveal that petroleum marketers have lifted a total of 518,500 metric tonnes of diesel (AGO) and Jet A1 from Dangote Refinery between April and September. This represents 60% of the national truck-out within the last five months.
Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that independent marketers, including Asharami, MRS Oil and Gas, AA Rano, Rainoil, Prudent, NipCo, Aym Shafa, and Danmarna, have consistently patronized Dangote Refinery. These marketers have lifted 489,500 metric tonnes of diesel and 29,000 metric tonnes of Jet A1 across various Nigerian ports.
However, concerns remain about the availability of petrol from the refinery, with marketers citing the need for clarity to enhance local patronage.
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