Petrol: Marketers, NNPCL Counter Dangote Refinery On Boycott Claims Over Lower Pricing
The long walk to solving Nigeria’s oil and gas crisis took a fresh twist on Thursday, when the Vice President of Dangote Industries Limited, Devakumar Edwin accused local petroleum marketers of boycotting Dangote Refinery’s petrol despite offering lower prices.
Edwin speaking during an X space session organised by Nairametric on Thursday said only 3 percent of local petroleum marketers were interested in buying its recently rolled-out petrol.
He stressed that local marketers refused to purchase PMS from the 650,000 barrels per day Lagos-based refinery while having a preference for imported petrol.
His claim struck Nigerians and stakeholders differently in the face of the country’s layers of challenges.
This comes barely weeks after the President of Dangote Group, Aliko Dangote officially announced the rollout of Petrol.
Later, the company announced the September 15, 2024 date for the lifting of PMS.
NNPCL recently confirmed that it is awaiting the 15 of September, 2024, date to commence lifting petrol from Dangote Refinery.
The announced Dangote Refinery’s petrol comes at the time the Nigerian National Petroleum Limited, the country’s sole PMS importer adjusted its petrol price to N897 and N855 depending on the location.
Consequently, other petrol outlets dependent on NNPCL increased their fuel pump prices to around N980 to over N1000 per liter depending on the location.
About a 50 percent pump price hike had been a major headache for many Nigerians. To make matters worse, there is a petrol supply challenge with pockets of queues in major cities. As expected, transportation costs and other goods responded to the latest petrol pump hike.
Meanwhile, the statement by Edwin on Thursday that local marketers are boycotting Dangote Refinery’s petrol with lower prices have raised concerns.
DAILY POST on Thursday spoke exclusively with the President of the Petroleum Products Retail Outlets Owners Association, Billy Gillis-Harry, President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Abubakar Maigandi and the Spokesperson of NNPCL, Olufemi Soneye where they revealed that local marketers cannot boycott Dangote Refinery’s petrol as claimed.
Tell us your Petrol Price – PETROAN President, Gillis-Harry to Dangote Refinery
On his part, Gillis-Harry said that local marketers don’t even know the price of Dangote Refinery’s petrol, let alone boycotting the product.
According to him, Dangote Refinery should unveil the price of its PMS.
He noted that marketers are willing and able to patronize Dangote Refinery’s petrol at a price that would be beneficial to both parties.
He queried: “Why don’t Dangote Refinery give us a price list of what his price is? They cannot tell the price of Dangote Refinery’s PMS which they claim is cheaper than imported petrol.
“What is the price of DRL petrol? How come they are saying marketers are boycotting their petrol? We don’t know how much Dangote is selling its petrol. We are willing to partner with him but we partner on the basis that we would be able to sell with a human face.
“Right now, everybody is crying. The buying price, not the landing price at retail outlets is N870 per liter. In filling stations in some areas N855 or N890. When we buy and take to our retail outlets with all the costs, including logistics, how much would it be?
“But at least, we know what NNPCL is selling fuel, let us also know what Dangote Refinery will sell petrol. We don’t know. We are anxious to know. We want to be able to patronize Dangote Refinery petrol.”
When asked about the readiness of Marketers to buy Dangote Refinery’s petrol, he said, “We are willing to lift Dangote’s petrol. We don’t want him to sell his product at a loss while we don’t want terms of sales that will be strangulated.
“For instance, in the last trial of Dangote Refinery’s Automotive Gas Oil, we were made to buy a minimum of one million liters of diesel.
“How many retail outlets can afford to pay such an amount of money? That is the challenge because everybody wants to buy one, two or three trucks to take to their retail outlets. That was what we experienced with AGO.”
“We don’t know what we should have with Dangote Refinery PMS because he has never spoken to us or given us a basis to trade with him. However, we are willing and able to work with him”, he said.
Marketers can’t boycott Dangote Refinery’s petrol – IPMAN president
On his part, Maigandi explained that IPMAN and its members did not receive any message from Dangote Refinery over its petrol until Wednesday, noting that marketers have yet to know the price of the firms’ petrol.
According to him, there is no way marketers would boycott Dangote Refinery Petrol with cheaper prices.
He noted that marketers are ready to patronize Dangote Refinery provided that its petrol prices are not more than the prices they are getting from other places.
Maigandi said IPMAN held a meeting on Thursday to discuss a partnership request letter written by Dangote Refinery.
He revealed that IPMAN plans to meet with Dangote Refinery to marshal out how to implement the partnership.
“We will hold a meeting with Dangote Refinery.
“We didn’t receive any information on Dangote Refinery until yesterday (Wednesday). We don’t know the price of Dangote Refinery’s Petrol.
“After a meeting with our members today (Thursday), we are ready to buy Petrol from Dangote Refinery in any condition provided the price is not more than the price we are getting from other places.
“NNPCL, you know they are the sole importer, the company sells to us at an average price of N875 per liter.
“For the NNPCL product, we sell at N930 or N940 depending on how the product was obtained. While at the depot, we buy at N990 per liter. We are marketers, anywhere we can get it at a lower rate, we will go there.
“In the letter to us, Dangote said the PMS is ready. The price was not stated.
“We can’t boycott Dangote Refinery; if Dangote Refinery’s petrol is cheaper, how can marketers boycott the product?
“We don’t have any issue with Dangote Refinery”, he told DAILY POST.
We are negotiating Petrol prices with Dangote Refinery – NNPCL
Also, the Spokesperson of NNPCL, Soneye said he doesn’t believe anyone will boycott PMS with lower prices.
He revealed that NNPCL is currently negotiating prices with Dangote Refinery ahead of the company’s announcement that petrol will be available by Sunday, September 15.
“I don’t believe local marketers will boycott PMS with lower prices; that seems unlikely.
“We are currently negotiating prices with the Dangote Refinery. We were informed that it would be available by September 15, so we are waiting for that”, he told DAILY POST exclusively.
No Petrol has been loaded at Dangote Refinery – MD 11Plc, Oyebanji
Managing Director, 11Plc, Mr Tunji Oyebanji said no petrol has been loaded from Dangote Refinery.
According to him, the earliest Dangote Refinery can loan petrol is September 15, 2024.
“No petrol has been loaded from DR to the best of my knowledge. Earliest we expect it is on the 15th”, he said.
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