Dangote Truck
By Olamilekan Abayomi
Nigerian petrol marketers are planning to abandon Dangote Refinery’s petrol in favor of cheaper imported fuel due to a significant price disparity. The Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, stated that marketers will opt for imported fuel, which costs N839.97 per liter, compared to Dangote Refinery’s price of N877 per liter. This decision is attributed to the liberalization of the sector, which has set the tone for a price war.
The price difference of N37 per liter is significant for marketers, and they believe Nigerians will benefit from cheaper fuel. Ukadike emphasized that petroleum product marketers are interested in buying petrol that is cheaper, as it sells faster. The ex-depot prices of other companies, such as Emedab, Gulf Treasure, Ardova, and Bono, stood at N875 per liter, while Dangote Refinery’s price remained at N877.
The development comes amid a dispute between Dangote Refinery and petroleum marketers over subsidy claims worth N1.5 trillion. Dangote Refinery accused marketers of requesting subsidies to align with the refinery’s gantry price of N820 per liter. However, marketers have denied the allegations and threatened to sue the oil firm.
The shift to imported fuel could lead to increased competition in the market, potentially driving down prices. Cheaper fuel would benefit Nigerian consumers who have been struggling with high fuel prices. However, this decision may affect Dangote Refinery’s sales and revenue, potentially impacting its operations.
The Dangote Refinery has been experiencing supply setbacks, resulting in nationwide petrol shortages. Marketers had previously complained about the non-supply of petrol by Dangote Refinery despite having paid billions to the 650,000-barrel-per-day facility. The refinery’s Vice President, Edwin Devakumar, has denied claims of non-supply, stating that the refinery has more than enough supply and challenging marketers to bring their trucks for loading.
