Nigeria Pricing Controversy: Dangote Refinery Snubs Marketers, Fuels Uncertainty in Fuel Market

The Dangote Refinery faces backlash from oil marketers over its refusal to allow direct petrol lifting. Leaders from IPMAN and PETROAN express frustration at the lack of communication, which could impact petrol prices that currently range from N950 to N1,200 per liter amid recent market changes.

The Dangote Refinery, which has a capacity of 650,000 barrels per day, is under scrutiny from oil marketers due to its refusal to allow direct lifting of its Premium Motor Spirit (petrol). Leaders from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association (PETROAN) have expressed their dissatisfaction with the lack of communication from the refinery regarding potential direct sales.

Abubakar Maigandi, president of IPMAN, stated that despite numerous requests to meet with Dangote’s management, there has been no response. He highlighted that allowing direct sales could lead to a substantial drop in petrol prices, which currently range from N950 to N1,200 per liter. The Nigerian National Petroleum Company Limited (NNPCL), which has historically been the sole off-taker for the refinery’s products, has recently withdrawn from this role, leaving marketers in a state of uncertainty.

Billy Gillis-Harry, president of PETROAN, supported Maigandi's concerns, noting that attempts to engage in discussions have gone unanswered. While a spokesperson for the Dangote Group claimed unawareness of the situation, the ongoing controversy has sparked worries about petrol pricing and supply stability across Nigeria.

This development follows recent pricing adjustments by Dangote, prompting lawmakers to call for the refinery to engage with oil marketers and facilitate a more reliable and affordable fuel supply for consumers in the country.