₦1,028 Per Litre: Marketers Move To Sell Cheaper Fuel, As NNPC Petrol Too Expensive; Details Emerge

Despite requests for transparency, Dangote Refinery has not publicly disclosed its petrol prices.

In response, marketers expressed plans to import petrol and sell it below Dangote’s refinery prices as well as those of the Nigerian National Petroleum Company Limited (NNPCL).

Data from the Major Oil Marketers Association of Nigeria revealed that as of October 31, 2024, the landing cost of petrol stood at N978.01 per litre. Diesel and aviation fuel had landing costs of N1,069.97 and N1,119.67 per litre, respectively. Landing costs represent the unit prices of imported fuels upon arrival in Nigeria.

Despite requests for transparency, Dangote Refinery has not publicly disclosed its petrol prices. …CONTINUE READING

However, an anonymous source among major marketers confirmed to The PUNCH that Dangote sells bulk purchases at N1,015 per litre and smaller quantities at N1,028.

Additionally, recent cargoes with petroleum products have been unloaded at Nigerian seaports. The source noted that imported PMS remains cheaper than Dangote’s price, alleging efforts by Dangote to discourage government-permitted fuel imports.

“Dangote is selling to bulk buyers at N1,015/litre, but to marketers who are not buying in bulk, the refinery is selling at N1,028/litre.

“But imported PMS is cheaper than the cost of Dangote’ own, and that is why he is doing all he can to ensure that the government stops the importation of fuel,” the dealer stated.

The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) also announced intentions to sell imported petrol at prices lower than Dangote’s and NNPCL’s.

PETROAN’s Publicity Secretary, Dr. Joseph Obele, explained that Dangote’s prices may reflect high costs due to imported crude.

Obele shared that PETROAN is partnering with international suppliers to import petrol at around N800 per litre, contingent on import authorization.

“PETROAN is an association, but we have incorporated our limited liability company called PETROAN Limited. We have got the licence from the Corporate Affairs Commission, and we have applied to the NMDPRA to licence us and give us authority to import. So, as we get that authority to import, I think we will import from the best market.

“And it is good also for the general public to understand that the landing costs in all the nations are not the same. PETROAN has got a partner from the international market, that the product will arrive here at close to N800/litre. So, since PETROAN has the best value for Nigerian citizens, we are calling on the regulatory agency to release our authority to import in no distant time so our first stock will come in.

“And we assure you that PETROAN will sell far less than Dangote. It will sell at prices far less than NNPC. Right now, NNPC is selling to us at N1,040/litre. PETROAN will not sell like that, because we have negotiated. And all our partners and foreign counterparts are on standby to make sure we give Nigerians the best value,” Obele said

Obele noted that NNPCL functions as an intermediary, buying directly from Dangote and reselling to marketers, with no public disclosure of transaction prices.

In addressing the landing cost, he remarked that international crude price drops have led to lower landing costs, now about N978 per litre, down from N1,100 the previous month. While this decline has affected imported PMS, Dangote’s price is tied to older, costlier crude stocks, which currently impacts price reviews.

Yakubu Suleiman, National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria, also confirmed that Dangote’s petrol costs more than imported alternatives, adding that limited engagement with independent marketers has affected petrol distribution.

When reached, Dangote Group’s Chief Corporate Communications Officer, Tony Chiejina, dismissed circulating price figures as “fake news” and declined to confirm an actual price.