Why Independent Marketers Can’t Buy Petrol From Dangote Refinery – PENGASSAN

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained why independent marketers can’t buy petrol from Dangote Refinery.

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The association’s president, Festas Osifo spoke at a press conference in Lagos, on Tuesday.

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PENGASSAN said the issue stems from a pricing disparity between the costs at which the Nigerian National Petroleum Company Limited (NNPCL) buys PMS and the prices it sells to independent marketers.

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Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.

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He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1,000.

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Independent marketers prefer to purchase from NNPCL to take advantage of the lower prices, he said.

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Osifo noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.

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He cautioned that the ongoing trend of divestment by International Oil Companies (IOCs) poses both risks and opportunities for Nigeria, including potential reductions in foreign direct investment and production levels.