The Dangote Refinery, a major player in Nigeria's oil industry with a capacity of 650,000 barrels per day, has recently become the center of a fresh controversy.
Despite the Nigerian National Petroleum Company Limited (NNPCL) stepping down from its role as the sole purchaser of Dangote's petrol, the refinery has not yet agreed to allow oil marketers direct access to its Premium Motor Spirit (petrol).
This development was confirmed by Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), and Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN).
Efforts by these associations to engage with the management of Dangote Refinery have so far been unfruitful. Maigandi expressed frustration, stating, "Up till today we have not had a meeting and feedback from Dangote Refinery on direct sales of its fuel." He emphasized that without direct procurement, discussions about reducing petrol prices remain speculative.
Currently, petrol prices range between N950 and N1,200 per liter, but Maigandi noted, "There will be a small reduction in price if Dangote refineries sell petrol to us directly." Gillis-Harry echoed this sentiment, highlighting the lack of progress in negotiations: "We have attempted to have a business discussion with Dangote Refinery on direct petrol lifting but as of today, they have not given us greenlight."
The situation is further complicated by the recent Naira-for-crude sales agreement between the Nigerian government and Dangote Refinery, which was expected to lower petrol prices.
However, the absence of direct sales agreements has left market expectations unmet, potentially influencing fuel costs across Nigeria. Anthony Chiejina, a spokesperson for Dangote Group, when contacted, stated, "I am not aware," indicating a possible disconnect within the organization regarding these critical negotiations.
This impasse comes after the House of Representatives urged Dangote Refinery to permit direct lifting by oil marketers, a move anticipated to stabilize or reduce fuel price
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