Marketers are talking about Dangote petrol price and imported fuel as the new row resurfaces

• Oil marketers have revealed why they are yet to buy petrol from the Dangote refinery
• The marketers disclosed that the margin between petrol from the Dangote refinery and imported products is high
• The development comes as independent marketers said they were willing to buy from the refinery if direct sales are considered

Legit.ng’s Pascal Oparada has reported on technology, energy, stocks, investments and the economy for more than a decade.

Despite sufficient supply, petroleum product marketers have explained why they did not buy petrol from the Dangote refinery.

The development followed the alarm raised by the Chairman of Dangote Group, Aliko Dangote, over the alleged boycott of its refinery by the Nigerian National Petroleum Company Limited (NNPC) and marketers.

Dangote reveals reasons for queues at stations

The Nigerian billionaire said the persistent queues at various petrol stations across the country are due to marketers and NNPC not patronizing his refinery.

He revealed that the refinery currently has about 500 million liters of gasoline waiting for buyers.

Dangote’s comment has evoked reactions from marketers who contradicted him, saying they were ready to buy from the Lekki-based refinery at competitive prices.

Marketers appeal to Dangote to crash prices

The marketers insist that the mega refinery sell the product at a discounted rate to gain their support.

Daily Trust reports that many marketers who spoke anonymously said that the price of Dangote is higher than that of imported products, so marketers do not buy it.

According to the report, many marketers marketed the product at N970 per liter while the $20 billion refinery sells for N977, leaving a margin of N77.

They say that with the current price and differences, it would be a challenge for local marketers to break even on purchasing at the refinery.

Last I heard, his product was N977 and I was able to land at N970. Now if I import 50 million liters in a barrel, multiply the 50 million liters by seven to see how much I will lose if I buy from him. That is N350 million,” said the anonymous marketer.

Marketers are ready to buy Dangote petrol

An earlier report by Legit.ng independently stated this markers are prepared to patronize the factory after Dangote’s alarm.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asked the mega refinery to consider selling petrol directly to them, citing delays and outstanding payments from NNPC.

Marketers decry NNPC’s N40 billion debt

IPMAN President Abubakar Maigandi made this known in a statement television interview, saying marketers would like to buy fuel directly from the $20 billion refinery to address current shortages.

According to Maigandi, the association has over N40 billion in NNPC, stating that the marketers cannot buy petrol due to significant debt.

BusinessDay said the IPMAN helmsman revealed that the NNPC usually refers them to Dangote Refinery when they want to buy from the national oil company.

Citing significant delays in loading products from the Dangote refinery, the IPMAN boss said their trucks take as many as four days before they are allowed to load.

Maigandi expressed shock at Dangote’s statement that he has over 500 million liters in the factory.

Dangote reveals availability of petrol at refinery

He asked the Lekki-based refinery to allow marketers to purchase the product directly from the factory, saying its members were ready to market the product.

Legit.ng previously reported that Dangote raised the alarm on Tuesday, October 29, 2024, saying the NNPC and marketers are boycotting petroleum products from the facility.

The Nigerian billionaire made this known after a meeting with President Bola Tinubu of the Implementation Committee on the Sale of Crude and Refined Petroleum Products in Abuja.

Dangote is investing N460 billion in fuel priced at N200

Legit.ng earlier reported that Dangote in support of President Bola Tinubu’s compressed natural gas (CNG) initiative Cement has invested about N460 billion in CNG technology and infrastructure.

The company announced that the investment strengthens its leadership in the CNG sector and demonstrates its commitment to combating climate change and supporting a transition to a low-carbon economy.

The company announced that the investment strengthens its leadership in the CNG sector and demonstrates its commitment to combating climate change and supporting a transition to a low-carbon economy.

Source: Legit.ng