- Oil marketers have revealed why they are yet to purchase petrol from the Dangote Refinery
- The marketers disclosed that the margin between petrol from Dangote Refinery and imported products is wide
- The development comes as independent marketers said they are willing to buy from the refinery if it considers direct sales
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Despite ample supplies, petroleum products marketers have explained why they have not purchased petrol from the Dangote Refinery.
The development followed the alarm raised by the Chairman of the Dangote Group, Aliko Dangote, over the alleged boycott of his refinery by the Nigerian National Petroleum Company Limited (NNPC) and marketers.
Credit: Bloomberg/Contributor
Source: UGC
Dangote reveals reasons for queues at stations
The Nigerian billionaire said that the persistent queues in several filling stations nationwide are caused by marketers and NNPC not patronising his refinery.
He disclosed that the refinery currently has about 500 million litres of petrol waiting for buyers.
Dangote’s comment has generated reactions from marketers who countered him, saying they were ready to buy from the Lekki-based refinery at competitive prices.
Marketers request Dangote to crash prices
The marketers insist that the mega refinery sell the product at a reduced rate to attract their patronage.
Daily Trust reports that many marketers who spoke anonymously said Dangote’s price is higher than that of imported products, so marketers are not buying it.
According to the report, many marketers landed the product at N970 per litre, while the $20 billion refinery sells for N977, leaving a margin of N77.
They say that with the current price and differentials, it would be challenging for local marketers to break even purchasing from the refinery.
The last time I heard, his product was N977, and I could land at N970. Now, if I import 50 million litres in a vessel, multiply that 50 million litres by seven to see how much I will lose if I buy from him. That is N350 million,” the anonymous marketer was quoted as saying.
Marketers express readiness to buy Dangote petrol
A previous report by Legit.ng stated that independent markers are willing to patronise the plant following Dangote’s alarm.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asked the mega refinery to consider direct petrol sales to them, citing delays and outstanding payments from NNPC.
Marketers decry N40 billion debt by NNPC
IPMAN President Abubakar Maigandi disclosed this in a television interview, saying that marketers are eager to buy fuel directly from the $20 billion refinery to address the current scarcity.
According to Maigandi, the association has over N40 billion trapped in NNPC, stating that the marketers cannot source petrol due to the significant debt.
BusinessDay said the IPMAN helmsman disclosed that the NNPC usually refer them to the Dangote Refinery whenever they want to buy from the national oil company.
The IPMAN boss cited significant delays in loading products from the Dangote Refinery, saying that their trucks spend as much as four days before being allowed to load.
Maigandi expressed shock over Dangote’s statement that he has over 500 million litres in the facility.
Dangote reveals availability of petrol at refinery
He asked the Lekki-based refinery to allow marketers to purchase the product directly from the plant, saying his members are willing to lift the product.
Legit.ng earlier reported that Dangote raised the alarm on Tuesday, October 29, 2024, saying the NNPC and marketers are boycotting petroleum products from the facility.
The Nigerian billionaire disclosed this after meeting with President Bola Tinubu of the Implementation Committee on the Sale of Crude and Refined Petroleum Products in Abuja.
Dangote invests N460 billion in fuel priced at N200
Legit.ng earlier reported that to support President Bola Tinubu’s compressed natural gas (CNG) initiative, Dangote Cement has invested about N460 billion in CNG technology and infrastructure.
The company disclosed that the investment boosts its leadership in the CNG sector and shows dedication to combating climate change and supporting a transition to a low-carbon economy.
The company disclosed that the investment boosts its leadership in the CNG sector and shows dedication to combating climate change and supporting a transition to a low-carbon economy.
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Source: Legit.ng