The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to accelerate the completion of the refineries managed by the Nigerian National Petroleum Company Limited (NNPC) and to prevent the Dangote Petroleum Refinery from becoming a monopoly in Nigeria’s downstream oil sector.
This plea comes after the Federal Government granted petroleum marketers permission to lift petrol directly from the Dangote refinery, bypassing the NNPC’s intermediary role. Dangote’s refinery, which began selling petrol on September 15, 2024, initially supplied only the NNPC, leading to inefficiencies in the supply chain and a surge in petrol prices.
Amid growing concerns, the NNPC recently increased the pump price of petrol to ₦1,030 per litre. Since then, queues have reappeared at filling stations, with some stations charging as much as ₦1,300 per litre. This has sparked frustration among marketers and consumers alike.
IPMAN’s Call for Competition
In response, IPMAN National Publicity Secretary Chinedu Ukadike urged the NNPC to resume operations at its refineries, particularly the Port Harcourt refinery, to create competition and bring down petrol prices. Ukadike argued that completing the NNPC refineries would allow marketers to purchase fuel at more competitive rates and break Dangote’s pricing dominance.
“The NNPC should rise to crash the pump price of petrol if the Dangote price is too high,” Ukadike said. He noted that Dangote’s prices are influenced by global crude oil rates, but suggested that the NNPC could sell petrol at ₦750 per litre if its refineries become operational.
Ukadike lamented the repeated delays in restarting the Port Harcourt refinery, despite seven postponements, and stressed that revamping NNPC refineries would ease fuel distribution nationwide. He revealed that IPMAN had already acquired a tank farm in Calabar and planned to expand its distribution infrastructure to ensure fuel availability across the country.
Impact of Pricing and Supply
IPMAN has expressed concerns about the chaotic fuel supply system, particularly with Dangote’s fuel not yet in wide circulation. The association, which controls over 70% of Nigeria’s filling stations, had earlier threatened to halt operations due to the high cost of petrol sold by the NNPC to independent marketers. The cost of petrol from Dangote’s refinery to the NNPC was reported to be around ₦898 per litre, but the NNPC was selling it to marketers at ₦1,010 per litre in Lagos.
The association’s dissatisfaction has raised fears of further fuel shortages and longer queues at petrol stations, as the price hike continues to affect both marketers and consumers.
Federal Government’s Response
On Friday, the Federal Government confirmed that the NNPC would no longer be the sole distributor of Dangote’s fuel, allowing marketers to engage in direct transactions with local refineries. Wale Edun, Minister of Finance and chairman of the naira-for-crude sale implementation committee, announced that this change would promote competition and enhance market efficiency.
“The committee is pleased to report a successful transition of operations,” Edun said, adding that this shift would facilitate a fully deregulated petroleum market and improve the availability of locally refined products.
The Way Forward
Ukadike emphasized that the Federal Government must hold ongoing discussions with all industry stakeholders to address pricing and supply issues. He urged the government to ensure that all NNPC refineries are fully operational to create a more competitive market and relieve pressure on Dangote.
“The Federal Government can start selling its fuel at ₦750 in Port Harcourt refinery. We marketers will go and buy and sell to our customers at reasonable prices,” Ukadike added. He stressed that a fully functioning Port Harcourt, Warri, and Kaduna refinery would provide alternatives to Dangote, balancing the market and benefiting Nigerian consumers.
