Fresh Petrol Price Hike Looms in Nigeria as Marketers Demand Transparency
The recent announcement of Dangote Refinery Premium Motor Spirit (petrol) pricing by the Nigerian National Petroleum Company Limited (NNPCL) has left petroleum marketers in Nigeria in limbo. The marketers are demanding transparency from Dangote Refinery on the price it sold petrol to NNPCL, as the country’s daily petrol consumption stands at N50 million, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The President of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, and the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, made this demand in separate interviews with Media Talk Africa. They noted that the country cannot depend solely on domestic petrol production to meet its daily consumption.
The new petrol prices announced by NNPCL showed that petrol will be sold at N950.22 per liter in Lagos State, N960 per liter in Oyo and other South West states, and N999.22 per liter in Federal Capital Territory (Abuja), Kano, and Kaduna. However, the pump price of petrol at Independent marketers’ filling stations may surpass that of NNPCL retail outlets by over N100, potentially reaching N1,200 per liter.
The controversy surrounding Dangote Refinery’s petrol pricing has further worsened the crisis in the sector. Dangote Refinery commenced first distribution of petrol at the weekend with NNPCL as an official offtaker, but NNPCL has yet to announce the price it would sell Dangote Refinery Petrol to marketers. This lack of transparency has left marketers in limbo, with some calling for absolute transparency in the oil and gas sector.
"I think Dangote Refinery should tell us what price it is selling its petrol since NNPCL has given its selling price," Gillis-Harry said. "We should be able to know exactly what price that is coming from Dangote Refinery Petrol to us. We should know how NNPCL will deal with us. As it is now, we are standing in limbo."
Maigandi also expressed displeasure with the scheme of things within the sector, stating that marketers are waiting for NNPCL to release prices that independent marketers will be buying petrol. He noted that marketers can cope without any rate, but are unhappy with the high cost of petrol, which requires a huge amount of money to obtain.
The Nigerian government has been urged to make other refineries functional, which may lead to a reduction in petrol prices. Marketers have also hinted that they may look to importation amid the cost of Dangote Refinery Petrol, as the refinery is producing only about 25 million liters a day, which is less than one cargo.
In conclusion, the controversy surrounding Dangote Refinery’s petrol pricing has left petroleum marketers in Nigeria in limbo, demanding transparency and clarity on the price it sold petrol to NNPCL. The situation is likely to lead to a fresh petrol price hike in the country, as marketers are left to navigate the uncertainty of the market.
