NNPC reveals why marketers cannot buy Dangote petrol

• The Nigerian National Petroleum Company Limited (NNPC) has disclosed the reason marketers cannot purchase petrol from Dangote refinery
• NNPC vice president, Downstream, Dapo Segun, said that the cost of Dangote petrol is not yet cost-reflective
• He said that for now, only NNPC can import the product and buy directly from Dangote

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian National Petroleum Company Limited has said that oil marketers cannot import or buy petrol from Dangote refinery because the product is not viable and cost-reflective.

Dapo Segun, executive vice president of the NNPC's downstream division, said no one was excluded from petrol imports.

The Group Chief Executive Officer of the NNPC, Mele Kyari Credit: Bloomberg/Contributor
Source: Facebook

NNPC clarifies the position of petrol import by marketers

He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved import permits.

According to Segun, marketers always ask for permits from NMDPRA to import petroleum products, including PMS, but they do not import petrol because the market is not profitable.

On buying products from Dangote Refinery, Segun said that the Dangote petrol is sold at the market price and that the NNPC is the only company to offtake the product for now.

NNPC price to marketers

According to the NNPC executive, petrol's market value is still higher than the N766 or N765 per litre NNPC sells the product to marketers.

He said:

“So, there is no way the marketers would bring it in. There’s no way the marketers would also buy from Dangote.

He disclosed that every other marketer can purchase the product as soon as prices are cost-reflective.

He disclosed that as soon as the market becomes viable, marketers cannot buy Dangote's productDangote product.

Marketers decry Dangote petrol price

Legit.ng reported that Oil marketers, including the Major Oil Marketers Association of Nigeria (MOMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have reacted to the latest petrol prices announced by the Nigerian National Petroleum Company Limited (NNPC Ltd). 

Legit.ng reported that the NNPC announced an adjustment in its petrol pump price after purchasing in dollars from the Dangote Refinery, dashing Nigerians' hopes for a reduction. 

Similarly, IPMAN, which controls a large majority of petrol stations in the country, has voiced concerns about the price of petrol from the Dangote Refinery. 

The group urged NNPC to ensure that domestically refined fuel does not exceed the price of imported petrol. 

Speaking on Channels Television, John Kekeocha, IPMAN's national welfare officer, questioned the rationale behind higher prices for domestically produced fuel, warning that such pricing would undermine the gains of domestic refining. 

Dangote releases ‘actual price’ of petrol

Legit.ng earlier reported that Dangote Industries Limited had issued a statement denying that it sold PMS to the Nigerian National Petroleum Company (NNPC) at N898 per litre.

The company made the statement against the backdrop of claims by NNPC’s spokesman, Olufemi Soyene, that it sold the product to the national oil firm at N898 per litre.

Dangote disclosed in the statement that Soneye’s claim was misleading and mischievous and aimed at undermining the Dangote Refinery's achievement in addressing Nigeria’s energy crisis.

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Source: Legit.ng