The pricing of Premium Motor Spirit (PMS), commonly known as petrol, from Nigeria’s Dangote Petroleum Refinery has become a flashpoint in the oil market, as marketers reveal that Dangote’s current rate exceeds N1,000 per litre, stirring controversy and calls for alternative supplies. On Friday, oil marketers disclosed that the refinery’s price for PMS stands between N1,015 and N1,028 per litre, contingent on purchase quantity, sparking criticism and pledges by industry leaders to import and sell at lower rates.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) indicated that as of October 31, the landing cost of imported petrol was approximately N978 per litre. Diesel and aviation fuel costs were even higher, with landing costs at N1,069.97 and N1,119.67 per litre, respectively. These figures underscore the economic pressures on domestic fuel prices as import costs fluctuate.
Industry sources suggest that despite ongoing domestic supply, the Dangote refinery has not publicised its PMS pricing, even as marketers report higher rates for the local product compared to imported fuel. An anonymous industry official confirmed that bulk purchasers from Dangote currently pay N1,015 per litre, while smaller buyers pay N1,028 per litre, rates above the costs of imported fuel.
“Dangote’s prices are higher than imports, which is why he is pressuring the government to curb importation,” the official remarked, revealing the growing tension between local and imported fuel sources.
In response, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) pledged to supply imported petrol at prices significantly lower than Dangote’s. Dr. Joseph Obele, PETROAN’s Publicity Secretary, attributed Dangote’s higher rates to its reliance on premium-priced imported crude. PETROAN, he stated, had secured partnerships with international suppliers to bring fuel into Nigeria at a price closer to N800 per litre.
“PETROAN Limited, our newly incorporated company, is ready to deliver fuel at prices far below those offered by Dangote and NNPC. Our partners are prepared to offer the best value for Nigerian consumers,” said Obele. While PETROAN awaits regulatory clearance for these imports, he anticipates rapid market entry and substantial cost savings for consumers.
The Dangote refinery, meanwhile, faces further scrutiny. IPMAN’s National Assistant Secretary, Yakubu Suleiman, asserted that Dangote’s pricing was outpacing imports, with the refinery charging around N995 per litre. Suleiman criticised Dangote’s limited engagement with independent marketers, describing the refinery’s fuel distribution approach as exclusionary.
The Dangote Group, however, rebuffed claims of inflated prices. Tony Chiejina, Chief Corporate Communications Officer, dismissed the figures as “fake news,” yet declined to provide verified pricing details.
As Nigeria’s fuel pricing debate intensifies, independent marketers continue to seek more competitive options, underscoring the need for transparency and competition in the country’s energy sector.
