Nigeria’s ongoing oil and gas crisis took a new turn on Thursday when Devakumar Edwin, Vice President of Dangote Industries Limited, accused local petroleum marketers of boycotting Dangote Refinery’s petrol despite offering lower prices. During an X space session organized by Nairametrics, Edwin claimed that only 3% of local petroleum marketers showed interest in purchasing the refinery’s recently rolled-out petrol. He highlighted that local marketers prefer imported petrol over the product from the 650,000 barrels per day Lagos-based refinery.
Edwin’s remarks stirred various reactions among Nigerians and stakeholders, especially as the country continues to face significant challenges in its energy sector. This development follows the recent announcement by Aliko Dangote, President of Dangote Group, regarding the rollout of petrol from the refinery. The company has set September 15, 2024, as the date for lifting Premium Motor Spirit (PMS).
The Nigerian National Petroleum Company Limited (NNPCL) confirmed it is awaiting the September 15 date to commence lifting petrol from Dangote Refinery. The refinery’s petrol rollout coincides with a period when NNPCL, Nigeria’s sole PMS importer, adjusted its petrol prices to N897 and N855 per liter, depending on the location. Consequently, other petrol outlets reliant on NNPCL have increased their pump prices to around N980 to over N1000 per liter, depending on the area. This nearly 50% price hike has exacerbated the struggles of many Nigerians, with petrol supply challenges leading to queues in major cities and a subsequent rise in transportation and goods prices.
Edwin’s assertion that local marketers are boycotting Dangote Refinery’s petrol has raised concerns. In response, leaders of key petroleum marketing associations have denied these claims. Speaking with the DAILY POST, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), and Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), refuted the allegations, stating that marketers cannot boycott a product without knowing its price.
Gillis-Harry challenged Dangote Refinery to disclose its petrol pricing, emphasizing that marketers are willing to purchase the refinery’s product if it is beneficial for both parties. He questioned how marketers could be accused of boycotting when they have not been informed of the refinery’s pricing.
Maigandi also noted that IPMAN and its members did not receive any communication from Dangote Refinery until September 11, 2024. He emphasized that marketers are eager to patronize Dangote Refinery if its prices are competitive. He revealed that IPMAN plans to meet with Dangote Refinery to discuss potential partnerships.
NNPCL spokesperson Olufemi Soneye echoed the skepticism about a boycott, stating that it is unlikely marketers would avoid lower-priced PMS. He confirmed that NNPCL is negotiating prices with Dangote Refinery ahead of the scheduled petrol availability on September 15.
Tunji Oyebanji, Managing Director of 11Plc, also weighed in, stating that no petrol has been loaded from Dangote Refinery yet, with the earliest expected date being September 15, 2024.
The situation remains dynamic as stakeholders await the finalization of Dangote Refinery’s petrol pricing and distribution strategy.