As Nigerians grapple with the recent increase in fuel prices by the Nigerian National Petroleum Company (NNPC) Limited, updates suggest potential relief as oil marketers press for a price reduction from the Dangote Refinery. Meanwhile, new agreements are being forged to ensure a more stable and affordable fuel supply across the country.
Oil Marketers Challenge Dangote Refinery Over Petrol Pricing
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns over the current pricing of petrol supplied by the Dangote Refinery. According to PETROAN’s spokesperson, Joseph Obele, the cost of production for petrol has fallen below ₦600 per liter, largely due to government concessions, such as the crude-for-Naira agreement granted to the refinery.
Obele criticized Dangote Refinery for maintaining international market prices despite these government concessions and called for a reduction in fuel prices to alleviate the financial burden on Nigerians.
Direct Supply Discussions Between PETROAN and Dangote Refinery
In light of the fuel price debate, Dangote Refinery is set to engage with PETROAN in talks aimed at establishing a direct fuel supply partnership. This initiative follows a recent agreement between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the refinery, eliminating the need for intermediaries in fuel distribution.
PETROAN confirmed that Dangote Refinery had reached out to arrange a strategic business meeting to discuss direct supply options. A seven-member delegation led by PETROAN’s President, Dr. Billy Harry, will represent the association at the meeting. The primary goal is to secure affordable, high-quality fuel for Nigerian consumers while ensuring compliance with industry standards.
IPMAN-Dangote Agreement Could Lower Fuel Prices
Fuel prices may see a decrease following a groundbreaking agreement between IPMAN and Dangote Petroleum Refinery. Under this new deal, IPMAN will source fuel products, including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK), directly from the Dangote Refinery. This direct purchase arrangement aims to eliminate middlemen, which could lead to more competitive pricing at petrol stations.
IPMAN’s National President, Abubakar Garima, emphasized that this agreement is expected to improve the availability of petrol nationwide, reducing the impact of recent price hikes. Speaking at a press briefing in Abuja, Garima underscored that the new supply chain would ensure a constant and affordable supply of fuel throughout Nigeria.
Government and Public Reactions to Fuel Price Increases
The latest fuel price increases have sparked widespread frustration among Nigerians, who continue to face the challenges of high living costs and economic uncertainty. Calls for price reductions from key stakeholders and direct negotiations with the Dangote Refinery are viewed as crucial steps toward easing these hardships. The outcome of the upcoming PETROAN-Dangote meeting is anticipated to play a significant role in determining the future of fuel pricing in the country.
The government’s involvement in the crude-for-Naira concession and the recent agreements with industry stakeholders highlight the complexity of Nigeria’s fuel market, where domestic production capacity is seen as essential to achieving long-term stability.
News Editor