IPMAN Condemns Sale of Dangote Petrol at Higher Prices than Imported Fuel

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns about the pricing of petrol from the Dangote Refinery, calling on the Nigerian National Petroleum Company Limited (NNPCL) to ensure that locally refined fuel is not sold at a higher price than imported products.

IPMAN warned that pricing disparities could undermine the country’s push for energy self-sufficiency and negatively affect consumers and marketers. The association highlighted that domestic production should come with benefits for Nigerians, particularly more affordable fuel.

On Monday, John Kekeocha, IPMAN’s National Welfare Officer, speaking on Channels Television’s The Morning Brief, emphasized the importance of competitive pricing to the success of the Dangote Refinery and the stability of Nigeria’s fuel market.

“If NNPCL sells Dangote products at higher prices than imported fuel, it doesn’t make sense. What is the point of the celebration we’ve had all this time?” Kekeocha asked.

NNPCL began loading the first batch of petrol from the Dangote Refinery on Sunday, stating that the fuel was priced at ₦898 per litre from the private facility. However, this raised eyebrows, as NNPCL outlets in Lagos had been selling petrol for ₦855 per litre before switching to Dangote’s product, which is now priced at ₦950 per litre in Lagos and ₦1,019 in Borno.

In response, Dangote Refinery denied selling petrol at ₦898 per litre, calling NNPCL’s claim “misleading and mischievous.” A refinery spokesperson, Anthony Chiejina, clarified that the refinery sold products to NNPCL in dollars, offering substantial savings compared to imported fuel. Chiejina also noted that the Dangote Refinery’s supply will ensure the availability of petrol in all parts of the country, including remote areas.

Despite this clarification, NNPCL maintained its stance, challenging Dangote Refinery to publicly disclose the price at which it sold the petrol. The state oil company also released a breakdown of pricing across its stations nationwide.

The Dangote Refinery, a $20 billion facility located in Lagos, began operations in December 2023 with a processing capacity of 350,000 barrels of crude oil per day. The facility aims to reach its full capacity of 650,000 barrels per day by the end of 2024, having already started supplying diesel and aviation fuel to local marketers.

Nigeria, Africa’s most populous nation, continues to grapple with severe energy challenges. With all its state-owned refineries currently non-operational, the country relies heavily on imported petroleum products, with NNPCL serving as the primary importer. The removal of fuel subsidies in May 2023 saw the price of petrol skyrocket from around ₦200 per litre to over ₦1,000 per litre, adding to the financial burden on citizens who also rely on petrol to power their vehicles and homes due to unreliable electricity supply. Fuel shortages and long queues at petrol stations have become a common occurrence in recent months.