Oil marketers may sell below Dangote’s price – Report
Oil marketers announced that the price of petrol from the Dangote Petroleum Refinery ranges between N1,015 and N1,028 per litre, depending on the quantity purchased.
According to The Punch, dealers plan to import petrol and sell it at a lower price than Dangote and Nigerian National Petroleum Company Limited.
According to recent data from the Major Energies Marketers Association of Nigeria, the landing cost of petrol was N978.01 per litre on October 31, 2024.
It stated that the landing cost of diesel was N1,069.97/litre, while aviation fuel was set at N1,119.67/litre.
The landing cost of petroleum products is the unit price of these imports upon arrival in Nigeria.
Despite multiple requests, the Dangote refinery has yet to disclose the price of its refined petrol since it began domestic distribution.
However, an anonymous major marketer revealed that petrol from the Dangote refinery costs more than imported PMS.
According to the official, the refinery currently sells to oil marketers who purchase in bulk at N1,015/litre and small buyers at N1,028/litre.
The major marketer also stated that three cargoes of petroleum products had recently arrived and been discharged at various seaports along Nigeria's borders.
"Dangote sells to bulk buyers for N1,015/litre, but to marketers who do not buy in bulk, the refinery sells for N1,028/litre."
"But imported PMS is cheaper than the cost of Dangote' own, and that is why he is doing all he can to ensure that the government stops the importation of fuel," the vendor said.
Marketers from the Petroleum Retail Outlet Owners Association of Nigeria promised to sell imported petrol at lower prices than those offered by the Dangote refinery.
They also stated that their prices would be lower than the ones set by the NNPCL.
Dr Joseph Obele, PETROAN Publicity Secretary, stated that the higher price of petrol from the Dangote refinery could be attributed to the fact that it continues to use imported crude oil purchased at a premium.
He stated that the association had secured agreements with international fuel suppliers to import petrol at competitive prices, with the product expected to arrive in Nigeria for around N800 per litre.
Obele stated, "PETROAN is an association, but we have formed a limited liability company called PETROAN Limited." We obtained a licence from the Corporate Affairs Commission and applied to the NMDPRA for a licence and the authority to import. So, once we have that authority to import, I believe we will import from the best market.
"It is also important for the general public to understand that landing costs vary across nations. PETROAN has secured an international market partner, and the product will be available in Nigeria for around N800 per litre. So, because PETROAN offers the best value to Nigerian citizens, we are requesting that the regulatory agency grant us permission to import in the near future so that our first stock can be delivered.
"And we assure you that PETROAN will sell significantly less than Dangote. It will sell at much lower prices than NNPC. NNPC is currently selling to us at N1,040 per litre. PETROAN will not sell in that manner because we have negotiated. And all of our partners and foreign counterparts are on standby to ensure that Nigerians receive the best value."
While the exact quantity to be imported could not be disclosed, the association's spokesperson stated that PETROAN would import cheaper petrol.
Obele clarified that Dangote sells directly to NNPC, who then sell to marketers.
"I am informing you that the position of NNPC as a middleman is still active until tomorrow. The NNPC has refused to reveal how much Dangote is contributing. Dangote has also refused to disclose the amount he is selling to the NNPC. So, I believe there is an agreement that they will not announce it.
"We only know how much the NNPC is selling it to us for. However, the transaction between the two is not publicly available. The NNPC has refused to mention it. And the general public has asked, "Please make these things available," he said.
Speaking about the landing cost of N978/litre, he emphasised that it varies by country.
"The landing cost ranges from N978 to N1,000. It was approximately N1,100 last month. However, as the selling price of crude oil in the international market has fallen, PMS has also experienced a decline in the international market. So, I believe we should also see a downward review," he said.
When reminded that the NNPC had recently raised its prices, Obele replied, "No, the problem is that the only operational refinery we have is the Dangote refinery. And Dangote has informed everyone who is interested that the crude oil stock he is still working on was purchased from the international market; the naira-for-crude stock, he has not begun refining. So, we don't expect a negative review from someone who bought old stock when crude oil was priced between $80 and $78 per barrel.
"So, now that it has dropped to $72, we do not expect to automatically review the price. Because you can explain to us that it is still trading with the old stock. However, crude oil prices have recently dropped. We hope that whoever purchases the new stock in this new trade will review the price downward. However, if what Dangote has used to refine the available stock is old stock purchased when crude oil was still selling at $80 per barrel, we do not expect him to review downward.
"People can criticize the refinery until it starts producing with the naira stock it received last week. However, at the moment, I believe the selling rate reflects the former cost of crude oil."
Yakubu Suleiman, the National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria, confirmed that Dangote petrol is currently more expensive than imported petrol.
In an interview with Arise TV on Friday, Suleiman stated that the price of petrol from the Dangote refinery is around N995, which is higher than that of imported commodities.
He also chastised the refinery's CEO, Aliko Dangote, for excluding key stakeholders from the fuel supply strategy, claiming that the limited engagement with independent marketers has hampered their ability to access petrol from the facility.
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