• The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed strong disapproval over the pricing of petrol sourced from the newly operational Dangote Refinery
• The controversy arose following recent developments in fuel pricing
• The country’s state-owned refineries are currently non-operational, leaving Nigeria dependent on imported refined petroleum products

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed strong disapproval over the pricing of petrol sourced from the newly operational Dangote Refinery. 

IPMAN is urging the Nigerian National Petroleum Company Limited (NNPCL) to address concerns that Dangote's locally refined petrol is being sold at a higher rate than imported fuel, a move the association argues undermines the nation's pursuit of energy self-sufficiency and could negatively impact both consumers and marketers.

On Monday, September 16, John Kekeocha, IPMAN's National Welfare Officer, voiced his concerns during an appearance on Channels Television’s "The Morning Brief" breakfast program. Kekeocha questioned the rationale behind the higher prices, stating, “If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense. What is the celebration we are having all these while then?”

The controversy arose following recent developments in fuel pricing. The NNPCL began distributing petrol from the Dangote Refinery on Sunday, citing a purchase price of N898 per litre. Despite this, retail prices for Dangote petrol have reportedly reached N950 per litre in Lagos and an alarming N1,019 per litre in Borno. In contrast, NNPCL's existing petrol outlets in Lagos sell imported petrol for around N855 per litre.

Dangote Refinery, however, has refuted these claims. Anthony Chiejina, a spokesperson for the refinery, labeled the NNPCL's assertions as "misleading and mischievous." Chiejina asserted that the refinery’s sales were conducted in dollars and were significantly more cost-effective than imported alternatives. He also highlighted the refinery's commitment to distributing petrol to even the most remote areas of the country.

In response to the refinery's denial, the NNPCL has maintained that the petrol price of N898 per litre was accurate and has challenged the Dangote Refinery to disclose the actual pricing details. The NNPCL has also released a pricing breakdown for Dangote petrol across its filling stations.

The Dangote Refinery, a $20 billion project launched in December 2023, is poised to play a crucial role in Nigeria's energy landscape. With an initial capacity of 350,000 barrels per day and an expected full capacity of 650,000 barrels per day by the end of the year, the refinery represents a significant step towards reducing Nigeria's reliance on imported refined products.

Despite these advancements, Nigeria continues to grapple with energy challenges. The country’s state-owned refineries are currently non-operational, leaving Nigeria dependent on imported refined petroleum products. Fuel queues have become a common sight, and petrol prices have surged dramatically since the removal of the subsidy in May 2023, exacerbating the struggles of citizens who rely on petrol for transportation and power generation amidst unreliable electricity supply.

The ongoing debate over fuel pricing underscores the broader challenges facing Nigeria's energy sector and highlights the need for a transparent and fair pricing mechanism that supports both domestic production and consumer interests.

“N1,000/ltr?” NNPC introduces new petrol prices following Dangote refinery’s supply

Meanwhile, TheRadar reported that the Nigerian National Petroleum Corporation (NNPCL) Limited has introduced a new national pump price following the petrol lifting from Dangote Refinery, with an added cost for consumers.

The corporation disclosed the estimated petrol prices from Dangote Refinery for its retail stations across the country early morning on Monday, September 16, revealing that, according to the Petroleum Industry Act (PIA), the prices were negotiated between parties rather than being set by the government.