The ongoing efforts to resolve Nigeria’s oil and gas crisis took a new turn on Thursday as Dangote Industries Limited’s Vice President, Edwin Devakumar, claimed that local petroleum marketers were boycotting petrol from Dangote Refinery, despite the company offering lower prices.
Speaking during a session organized by Nairametrics, Devakumar noted that only 3% of local marketers had shown interest in purchasing petrol from the Lagos-based refinery, which has a capacity of 650,000 barrels per day. He suggested that marketers were favoring imported petrol over locally produced fuel, raising concerns among stakeholders amidst the country’s current fuel challenges.
This claim comes shortly after Dangote Group officially announced the rollout of its petrol products, with the first batch expected to be available by September 15, 2024. The Nigerian National Petroleum Company Limited (NNPCL), the country’s primary fuel importer, also confirmed that it is awaiting the mid-September date to begin lifting petrol from Dangote Refinery.
With NNPCL recently adjusting its fuel prices to between N855 and N897 per liter depending on the location, other fuel stations have raised their prices to as much as N1,000 per liter, causing widespread discontent among Nigerians due to a nearly 50% price hike and rising transportation costs.
Despite Dangote’s claims of a boycott, several industry leaders have pushed back. Speaking with the media, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), denied the allegations, saying marketers have not been informed of Dangote Refinery’s petrol prices, making it impossible for them to boycott the product.
“Why is Dangote Refinery accusing us of boycotting their petrol when we don’t even know the price? If they have a cheaper product, they should let us know. We are willing to partner with them, but we need transparency,” Gillis-Harry said.
Similarly, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), echoed these concerns. He confirmed that IPMAN had only received communication from Dangote Refinery about its petrol on Wednesday, without any price details. “There’s no way we would boycott cheaper fuel. We’re ready to buy if it’s more affordable than what we’re currently getting,” he said.
NNPCL’s spokesperson, Olufemi Soneye, also weighed in, saying it seemed unlikely that marketers would boycott cheaper fuel. He confirmed that NNPCL is in ongoing price negotiations with Dangote Refinery ahead of the September 15 product release.
Meanwhile, Tunji Oyebanji, Managing Director of 11Plc, added that no petrol had been lifted from Dangote Refinery as of yet, with the earliest expected delivery still scheduled for mid-September.