Marketers Aim To Lower Fuel Prices Amid Rising Costs From Dangote And NNPC.
Oil marketers in Nigeria have revealed plans to offer petrol at prices below those set by the Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited (NNPCL), as fuel prices from these suppliers soar to between ₦1,015 and ₦1,028 per litre.
According to the Major Oil Marketers Association of Nigeria (MOMAN), the current landing cost of Premium Motor Spirit (PMS) – petrol – was ₦978.01 per litre as of 31 October 2024. Diesel and aviation fuel were even higher, costing ₦1,069.97 and ₦1,119.67 per litre, respectively.
Despite repeated requests for transparency, the Dangote Refinery has not publicly disclosed its pricing structure. However, sources indicate that bulk buyers are charged ₦1,015 per litre, while smaller quantities are sold at ₦1,028. This pricing has spurred some marketers to seek alternatives by importing fuel directly, with the aim of offering it to the public at a more affordable rate.
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has confirmed intentions to import petrol that could retail around ₦800 per litre, pending regulatory approval. PETROAN Publicity Secretary, Dr. Joseph Obele, explained that the association is working with international suppliers to secure fuel at competitive rates. “We have a partner from the international market that will deliver products at close to ₦800 per litre. Our goal is to ensure Nigerians get the best value,” Obele stated.
Obele also noted that the current price gap between imported PMS and that from Dangote’s refinery stems partly from Dangote’s reliance on older, more costly crude oil stocks. By contrast, international market conditions have recently led to a reduction in landing costs, which could benefit Nigerian consumers if regulatory bodies grant importation permissions.
Meanwhile, Yakubu Suleiman, National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria, added that limited engagement between Dangote and independent marketers has contributed to ongoing distribution challenges. Calls for greater cooperation with independent marketers have been suggested to improve fuel accessibility.
Despite ongoing concerns, the Dangote Group dismissed current price figures as “fake news” through its Chief Corporate Communications Officer, Tony Chiejina, who refrained from specifying actual prices.
As the situation develops, oil marketers and associations are urging regulatory agencies to allow for increased imports to stabilise the market and provide relief to consumers facing high fuel costs.
