Marketers are calling for direct access to fuel from the Dangote refinery, opposing NNPC's exclusive role as the sole buyer at N766/litre. Concerns rise over a potential domestic monopoly and lack of pricing transparency, as Dangote prepares to supply 25 million litres of petrol daily.
In the ongoing scramble for fuel supply, Nigerian marketers are pushing for direct access to petrol from the Dangote refinery, challenging the Nigerian National Petroleum Corporation's (NNPC) stronghold on fuel distribution. This follows NNPC's recent purchase of petrol at N766 per litre. The marketers, led by the Independent Petroleum Marketers Association of Nigeria (IPMAN), have expressed concerns over the creation of a new monopoly within the domestic market. They argue that the market should remain open to all, in line with the earlier "willing-buyer, willing-seller" model promised by NNPC.
Despite earlier statements suggesting that NNPC would not be the sole off-taker from Dangote's refinery, recent government decisions have confirmed NNPC as the exclusive buyer. Wale Edun, the Minister of Finance, reiterated that while the Dangote refinery will commence supplying 25 million litres per day to the domestic market, the distribution will be handled solely by NNPC, which will later sell to other marketers.
Industry stakeholders are raising concerns over the lack of pricing transparency and fear the formation of a new domestic monopoly, similar to NNPC's former role in importation. Marketers warn that competition will diminish without open access to Dangote’s fuel, potentially driving prices higher for consumers. While some see the N766 per litre price as an opportunity to reduce pump prices slightly, others worry about the broader implications for Nigeria's oil and gas sector. The debate over market liberalization and the role of NNPC in the fuel supply chain will likely intensify as the first batch of petrol is set to roll out from Dangote's facility.
