The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed that discussions are still ongoing with Dangote Refinery over the terms for lifting petrol, as fuel pricing controversy continues to stir in the market. Aliko Dangote, President of the refinery, has publicly criticized the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum marketers for importing petrol from foreign sources, despite his refinery having 500 million litres of petrol in stock, which he claims is sufficient for domestic demand.
Chief Chinedu Ukadike, IPMAN’s Public Relations Officer, confirmed that while independent marketers have yet to lift petrol directly from Dangote Refinery, negotiations are progressing steadily. “We haven’t received any products from Dangote Refinery at this moment, but the processes are already in motion. I will provide updates as soon as they are finalized,” Ukadike stated. He also pointed out that the refinery’s product is not yet accessible to independent marketers and speculated that Dangote might be taking a cautious approach to market distribution.
The statement from Ukadike comes amidst rising concerns over fuel prices. He addressed the recent price hikes announced by the NNPCL, cautioning Nigerians not to be surprised by the changes, citing market dynamics. “People should not be taken aback. Deregulation is influenced by the principles of supply and demand, and the source of your supply can determine the selling price,” Ukadike explained.
The NNPCL’s decision to raise petrol prices by 14.8% earlier in October, from ₦897 to ₦1,030 per liter, followed the Federal Government’s removal of the petrol subsidy. This increase was unexpected by many, especially given prior expectations that the “crude-for-Naira” agreement between the government and Dangote Refinery would result in lower prices starting from October 1, 2024.
Contrary to these expectations, petrol prices have continued to rise. In Abuja, a 3% price increase was noted, with petrol now selling for ₦1,060 per liter. Investigations revealed that major marketers like Conoil and TotalEnergies are selling at ₦1,109 per liter, while others, including NIPCO (₦1,115), Adova Plc (₦1,125), and independent marketers, have prices ranging from ₦1,150 to ₦1,230, maintaining their October levels.
This follows a significant price jump on September 3, 2024, when the NNPCL raised petrol prices by a staggering 45%, from ₦617 to ₦897 per litre, further fueling public concerns.
