The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained why independent marketers cannot buy petrol directly from Dangote Refinery. The issue is due to a significant pricing gap between the price at which the Nigerian National Petroleum Company Limited (NNPCL) buys petrol and the price it sells to independent marketers.
While NNPC may purchase petrol at around N950 per litre, it sells to independent marketers at a much lower rate, approximately N700 per litre. This creates a price shortfall, which NNPC absorbs. On the other hand, if independent marketers buy petrol directly from Dangote Refinery, they would have to purchase it at a price similar to NNPCL’s buying price but would be forced to sell it at a much higher rate, likely exceeding N1,000 per litre. Therefore, independent marketers prefer purchasing from NNPC to benefit from the lower pricing.
Additionally, PENGASSAN noted that some of Nigeria’s crude oil is tied to loan repayments, which limits the supply available for local use. The ongoing divestment by International Oil Companies (IOCs) also raises concerns about potential impacts on foreign investment and production levels in Nigeria.