Lagos, Nigeria – September 13, 2024 – The long-standing challenges facing Nigeria’s oil and gas sector took a new twist this week as allegations of a boycott against Dangote Refinery’s newly launched petrol surfaced.
Devakumar Edwin, Vice President of Dangote Industries Limited, claimed that only 3% of local petroleum marketers were interested in purchasing the refinery’s petrol, despite offering lower prices. This revelation sparked widespread discussions and concerns among Nigerians and stakeholders.
The accusation comes just weeks after Dangote Group announced the official rollout of its petrol and the subsequent confirmation of a September 15, 2024 lifting date by the Nigerian National Petroleum Company Limited (NNPCL).
The Dangote Refinery’s petrol enters the market at a time when NNPCL has increased its petrol pump prices to N897 and N855 per liter. This hike has led to a significant increase in transportation costs and the prices of other goods.
However, the claim of a boycott by local marketers has been disputed. The President of the Petroleum Products Retail Outlets Owners Association, Billy Gillis-Harry, and the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, both denied the allegations.
Gillis-Harry emphasized that local marketers are unaware of the price of Dangote Refinery’s petrol and are open to purchasing it at a fair price. He called on Dangote Refinery to publicly announce its pricing.
Maigandi also dismissed the boycott claims, stating that IPMAN members are ready to patronize Dangote Refinery’s petrol if the prices are competitive. He revealed that IPMAN is planning to meet with Dangote Refinery to discuss partnership arrangements.
The NNPCL, meanwhile, confirmed that it is negotiating prices with Dangote Refinery ahead of the September 15 lifting date. The company’s spokesperson, Olufemi Soneye, expressed disbelief at the idea of marketers boycotting cheaper petrol.
As the situation unfolds, it remains to be seen how the disagreement between Dangote Refinery and local marketers will be resolved. The outcome of these negotiations could have significant implications for Nigeria’s fuel supply and prices.
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