The Nigerian National Petroleum Company Limited (NNPC) has opened the door for direct purchase of petrol from Dangote Refinery by independent marketers, ending its exclusive agreement to purchase petrol from the refinery and marking a pivotal change in the dynamics of the Nigerian petroleum market.
According to reports, this move by NNPC aligns with the current prices established for fully deregulated products in Nigeria.
Under this framework, refineries are permitted to sell their products directly to marketers based on a “willing buyer, willing seller” arrangement, a reflection of a growing trend toward market deregulation, which aims to foster competition and improve accessibility in the oil and gas sector.
When Dangote Refinery commenced its petrol sales, Edwin Devakumar, who serves as the Vice President of Oil and Gas at Dangote Industries Limited, had announced that NNPC would be the sole buyer of the refinery’s petrol. This exclusive arrangement sparked controversy, particularly among members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), who expressed concerns about limited access to fuel supplies.
In recent developments, it has come to light that there are significant backlogs of petrol requests from independent marketers, leading to NNPC shutting down its application portal. Reports indicate that marketers have been unable to submit new requests for petrol through the system, resulting in a waiting period for over 90 million litres of petrol, valued at approximately ₦79 billion. This situation has created frustration among marketers who feel sidelined by the previous arrangement.
Olufemi Soneye, a spokesperson for NNPC Ltd, clarified that the closure of the portal was a necessary step to prevent the prolonged holding of marketers’ capital, which can create financial strain on those businesses. By halting new applications temporarily, NNPC aims to streamline operations and manage the current backlog effectively.
Additionally, NNPC has announced petrol prices from the Dangote Refinery, which range from ₦950 to ₦1,019 per litre in the northern regions of Nigeria. Independent marketers have called on NNPC to reconsider these pricing structures, emphasizing that petrol produced domestically should not be sold at a price higher than that of imported fuel. This ongoing dialogue highlights the complexities of the Nigerian fuel market and the challenges faced by marketers as they navigate the new landscape created by this recent policy change.
