Fuel Crisis: Oil Marketers Call for Petrol Price Reduction, Dangote Refinery Offers Direct Supply Partnership
As Nigerians struggle to cope with the recent hike in fuel prices, oil marketers have demanded a reduction in the price of petrol coming from Dangote Refinery. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) claims that the cost of production has decreased to less than ₦600, making it necessary for Dangote Refinery to adjust its prices accordingly.
PETROAN’s spokesperson, Joseph Obele, explained during a Nigeria Info FM 99.3 broadcast that the reduction in production cost is a result of the crude for Naira concession granted to Dangote Refinery by the Federal Government. He argued that it’s unfair for Dangote Refinery to maintain its current prices, considering the concessions it enjoys.
Obele emphasized that Dangote Refinery should consider reducing its prices in line with the new production cost to alleviate the current hardships in Nigeria. He also highlighted the need for the refinery to prioritize consumers’ interests while adhering to regulatory standards and industry best practices.
In a separate development, Dangote Refinery is preparing to discuss a direct fuel supply partnership with PETROAN. This move follows Independent Petroleum Marketers Association of Nigeria’s (IPMAN) announcement of a direct purchase agreement with Dangote Refinery, which eliminates intermediaries in the process.
PETROAN has confirmed that Dangote Refinery has proposed a meeting to solidify business arrangements. A seven-member delegation, led by PETROAN President Dr. Billy Harry, will represent the association at the meeting.
If the partnership is successful, it may lead to a decrease in fuel prices. IPMAN’s agreement with Dangote Refinery allows the association to lift products directly from the refinery, ensuring a steady supply of petroleum products to consumers at a cheaper rate.
According to IPMAN’s National President, Abubakar Garima, Dangote refinery has agreed to supply PMS, AGO, and DPK directly to IPMAN depots and retail outlets. This new arrangement will guarantee a ceaseless supply of PMS products across Nigeria at an affordable rate.
