Fuel scarcity gone as major marketers begin lifting petrol from Dangote Refinery

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

The Nigerian National Petroleum Company Limited (NNPCL) has granted major petroleum marketers permission to start lifting premium motor spirit (PMS), commonly called petrol, from the Dangote Petroleum Refinery under their current agreement.

According to the original deal, NNPCL is the exclusive distributor of petrol produced by the refinery.

Finally, major marketers begin lifting petrol from Dangote Refinery, set to compete with NNPCL
Source: UGC

The first shipment consisted of 16.8 million litres, which were transported by NNPCL’s retail division.

According to Vanguard's findings, several major marketers, including 11 Plc, have already collected the product for distribution to their outlets in Lagos and various other regions across the country.

One of the marketers who pleaded anonymity, said:

“I can confirm that we have some major marketers already lifting from the Dangote Refinery, but it is still under the NNPC arrangement with the refinery, in other words, we are lifting NNPC product from the Dangote refinery. It is not our product. We have no direct arrangement with the refinery.”

It was gathered that independent marketers have not been incorporated into the revised arrangement.

In a phone interview with Vanguard, Alhaji Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that only NNPCL has access to fuel from the Dangote Refinery, with the majority of the product being supplied to their retail outlets.

He also mentioned that independent marketers are not yet purchasing from NNPCL under the Dangote Refinery agreement.

He stated:

“Independent marketers are waiting for NNPCL to give the new price of the petroleum products in order to lift from them. We load at the old rate of N875 per litre as most of our members have outstanding stock with NNPCL; we were told that they will be cleared this week.”

Due to the agreement designating NNPCL as the exclusive off-taker of petrol from the Dangote Refinery, marketers have indicated that they may need to import fuel to sustain their operations.

As a result, they have called on the federal government to fully liberalize the sector for all participants.

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Source: Legit.ng