The recent release of petrol from Dangote Petroleum Refinery by the Nigerian National Petroleum Corporation Limited (NNPCL) has sparked concerns among oil marketers, who believe the high price of locally produced fuel may justify the continued importation of Premium Motor Spirit (PMS).
Marketers indicated that vessels carrying imported petrol are expected to arrive in Nigeria, as the announced price of Dangote-produced PMS ranges from N950 per litre in Lagos to over N1,000 per litre in Borno State. The marketers argue that such high prices will encourage continued reliance on imported fuel, leading to a dual-pricing scenario where some stations may charge as much as N1,200 per litre for imported petrol.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) raised concerns over the pricing strategy, urging transparency and caution to ensure that locally refined products are not sold at higher prices than imported ones. IPMAN stated that this could counteract efforts towards energy self-sufficiency.
Adding to the concerns, the Nigeria Employers’ Consultative Association (NECA) also emphasized the need for competition, criticizing NNPC’s role as the sole off-taker of petrol from the $20 billion Dangote Refinery. NECA highlighted that fostering competition in the market is essential for achieving stable and fair fuel pricing.
