The Nigerian National Petroleum Company Limited (NNPCL) has authorized major petroleum marketers to start lifting premium motor spirit (PMS), also known as petrol, from the Dangote Petroleum Refinery. This move is part of an existing agreement between the NNPCL and the refinery, where NNPCL serves as the sole distributor of the refinery’s petrol.
The first consignment, totaling 16.8 million liters, has already been lifted by NNPCL’s retail entity, and major marketers, including 11 Plc, have begun distributing the product to outlets in Lagos and other parts of the country.
An anonymous source confirmed, “Some major marketers are already lifting from the Dangote Refinery, but it is still under the NNPCL arrangement, meaning we are lifting NNPC product from the refinery, not our own.”
However, independent marketers have not yet been included in this arrangement. Alhaji Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that only NNPCL currently has access to Dangote Refinery’s petrol. He added that independent marketers are still waiting for new pricing from NNPCL, with most members continuing to operate at the old rate of ₦875 per liter due to outstanding stock.
Amid this, some marketers have expressed concerns about the current deal, with some considering importation to remain competitive. They have called on the Federal Government to open up the sector fully to allow all players to participate.
Chief Chinedu Ukadike, the Public Relations Officer for IPMAN, stated, “We are asking Dangote to sell to us at the same price as NNPC. We don’t understand why he relies solely on NNPC for distribution when there are other willing buyers.”
In light of this, independent marketers are also seeking greater access to refinery products and are proposing that the Federal Government hand over management of the Port Harcourt Refinery to capable independent marketers to resolve ongoing challenges in the sector.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, commented on the development, noting that while the arrangement could be positive, more transparency is needed regarding the lifting and pricing framework used by NNPCL.
