The ongoing dispute between Dangote Refinery and petroleum marketers in Nigeria has escalated following comments made by Alhaji Aliko Dangote, President of the Dangote Group. Dangote claimed that marketers were not approaching his refinery to purchase petroleum products, leading to heightened tensions in the industry.
Since the launch of premium motor spirit (PMS), commonly known as petrol, from the Dangote Refinery in September, there has been a noticeable lack of cooperation among stakeholders, including the Nigerian National Petroleum Company Limited (NNPCL) and various petroleum marketers. Many Nigerians had hoped for a reduction in fuel prices with the refinery’s entry into the market, but instead, prices have surged, disappointing consumers.
In discussions with our correspondent, several individuals expressed frustration over the ongoing conflicts among stakeholders, emphasizing that their primary concerns are lower fuel prices and product availability, rather than public disputes.
During a meeting on Tuesday with President Bola Tinubu regarding the naira-for-crude policy, Dangote asserted that his refinery was capable of supplying over 30 million litres of petrol daily. He indicated that the refinery currently holds 500 million litres in its tanks, sufficient to sustain the country for over 12 days without additional production or imports. “At full capacity, we can supply whatever is being consumed,” he stated.
Dangote’s remarks drew a strong response from petroleum marketers, including both major and independent operators, who contested his claims. They maintained that they were prepared to purchase fuel from the refinery, but only at competitive prices. One marketer noted that while Dangote’s product was priced at N977 per litre, they could import petrol for N970 per litre, leading to significant financial losses if they bought from the refinery.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also voiced concerns, claiming they cannot currently access products directly from Dangote Refinery, despite assurances from the Minister of Finance. IPMAN President Abubakar Maigandi remarked that members are willing to buy directly but have faced obstacles, while a former chairman suggested that Dangote may not be interested in dealing with independent marketers due to a standing contract with NNPCL.
When reached for comment, the Executive Secretary of the Major Energy Marketers’ Association of Nigeria (MEMAN), Clement Isong, confirmed that the market is eager to buy from Dangote and expects competitive pricing, especially given the reduced transportation costs for locally refined products.
In response to the situation, Tony Chiejina, Chief Branding and Corporate Communications Executive of Dangote Group, expressed confidence in the refinery’s ability to serve Nigeria’s needs, highlighting the significance of local refining after decades of reliance on imports.
The controversy surrounding pricing and product availability has left many consumers feeling disillusioned. Commercial transporter Oladele Johnson criticized the ongoing debate among stakeholders, viewing it as a tactic to justify continuous price increases that further burden the public. He lamented the absence of genuine price reductions, noting that Nigerians have grown accustomed to rising fuel costs.
Retired Assistant Inspector-General of Police Ambrose Aisabor echoed these sentiments, stating that frequent fuel price hikes have become a part of daily life for Nigerians, who now accept such increases as inevitable. He emphasized that the real issue lies between Dangote and NNPCL, urging the latter to focus on improving its three refineries.
As the situation develops, stakeholders in the Nigerian oil and gas sector continue to grapple with the implications of pricing, supply, and competition in a deregulated market.
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