Petroleum Marketers Accuse Dangote Refinery of Selling Expensive Fuel in Nigeria
Nigerian petroleum marketers have raised serious concerns about the Dangote Refinery’s pricing strategy, alleging that the $20 billion facility was not intended to provide affordable petrol to Nigerians. In an exclusive interview with Daily Post on Tuesday, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), criticized the refinery’s recent pricing announcement.
The contention arises from Dangote Group’s spokesperson, Anthony Chiejina, who announced on Sunday that the price of Dangote Petrol was set at ₦960 per litre for ships and ₦990 per litre for trucks. This announcement follows the refinery’s fuel distribution launch on September 15, 2024. However, major energy marketers pointed out that these prices are not significantly lower than those of imported petrol, which had a landing cost of ₦978 per litre as of October 31, 2024.
Gillis-Harry highlighted the minimal difference between Dangote Petrol’s ₦990 per litre and the Nigerian National Petroleum Company Limited (NNPCL) price of ₦1,025 per litre, stating, “Dangote Petrol price would have been cheaper if the company meant well for Nigerians.” He further expressed uncertainty about Dangote’s ability to maintain lower prices across various states with the current pricing model, suggesting that consumers might not benefit as expected.
Abubakar Maigandi echoed these sentiments, asserting that Dangote Group President Aliko Dangote has been misinformed about the needs and strategies of petroleum marketers. Maigandi emphasized the importance of selling petrol directly to IPMAN members to reduce retail prices nationwide. “Our primary aim is to source petrol directly from Dangote Refinery to offer more affordable prices to Nigerians,” he explained. Maigandi also noted that attempting to bypass IPMAN would be futile, given that the association controls approximately 85% of Nigeria’s filling stations.
The backlash from marketers comes amid widespread frustration among Nigerians over high fuel prices and their impact on the economy. Protests erupted on Monday at the NNPCL headquarters in Abuja, with demonstrators demanding the removal of the state-owned oil firm’s Group Chief Executive Officer, Mele Kyari. While NNPCL retail outlets currently sell Premium Motor Spirit (PMS) between ₦1,025 and ₦1,060 per litre, other filling stations across the country charge between ₦1,115 and ₦1,300 per litre.
In response to the marketers’ accusations, Dangote Refinery remains steadfast, asserting that its pricing is competitive and aligned with international standards. The refinery also contended that it has halted rent payments to landlords and vendors to facilitate restructuring, a move that industry expert John Bringardner from Debtwire described as giving the company “breathing room” during this challenging period.
Despite efforts to adjust its business model, Dangote Refinery has faced significant hurdles, including high operational costs and intense competition from established players like NNPCL. The refinery’s inability to offer substantially cheaper petrol has fueled skepticism about its commitment to making fuel more affordable for Nigerians.
As the situation unfolds, petroleum marketers continue to advocate for direct collaboration with Dangote Refinery to achieve more meaningful price reductions. Meanwhile, consumers remain hopeful that future adjustments will address their concerns and alleviate the financial strain caused by elevated fuel prices.
