Marketers: Dangote Petrol Prices Could Have Been Lower If the Company Had Nigerians’ Best Interests at Heart

Nigerians’ hopes for lower fuel prices have been dashed, as petroleum marketers argue that the Dangote refinery, which cost $20 billion to build, was not designed to produce cheaper petrol. This follows the announcement of Dangote’s pricing structure, which sets petrol prices at N960 per litre for ships and N990 per litre for trucks, according to DAILY POST....(CONTINUE READING)

In an interview, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), voiced concerns over the price announcement made by Dangote Group spokesperson Anthony Chiejina, after the refinery began distributing fuel on September 15, 2024.They pointed out that the reported landing cost of imported petrol was N978 per litre as of October 31, 2024. Gillis-Harry noted the small price difference between Dangote petrol, priced at N990 per litre, and the Nigerian National Petroleum Company Limited (NNPCL) price of N1,025 per litre.

He said, “The difference is just N35. Dangote’s petrol would have been cheaper if the company had the best interests of Nigerians at heart.” He also questioned how much Dangote petrol will ultimately cost once it’s distributed nationwide.Maigandi suggested that Aliko Dangote, the President of the Dangote Group, might not fully understand the dynamics of the petroleum marketing industry.

He called on Dangote to consider selling petrol directly to IPMAN members, as this could help lower retail prices across the country.Maigandi further explained that IPMAN aims to source petrol directly from the Dangote refinery to offer better prices to consumers, warning that any attempt to bypass the association in the oil sector would likely fail, given that IPMAN controls 85 percent of the country’s filling stations.