Dangote Refinery’s Price Shuffle Sparks Divide among Oil Marketers

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Two major oil marketing groups in Nigeria, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), have differing views on the recent adjustment of petrol prices by Dangote Refinery. According to industry sources, the refinery has adjusted its Premium Motor Spirit (PMS) price from N835 per litre to N825 per litre, although no formal announcement has been made.

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PETROAN’s National President, Dr. Billy Harry, expressed concerns that the development could run oil marketers out of business. “We have been holding a meeting on the price since morning to discuss how to attack this kind of thing because the way it is going, we will be run out of business,” he said. When asked about the state of the petrol market, Harry simply said, “It is tough.” He also noted that Dangote Refinery keeps shifting the price, stating that “Dangote keeps shifting back the price every everyday.”

On the other hand, IPMAN’s National President, Alhaji Abubakar Maigandi, welcomed the price adjustment, citing the Petroleum Industry Act (PIA), which advocates for full deregulation of the downstream oil sector. According to him, the refinery was still supplying petrol at N835 per litre at the time of the interview, but there was a likelihood of a price adjustment to N825 per litre. Maigandi noted that the price adjustment usually affects marketers with old stock, advising them to keep selling their stock as the price might depreciate further

“The best thing is to keep selling it because Dangote will still bring down the price,” Maigandi said. When asked about the petrol market, he replied, “From the gantry, the price is still N835 per litre. Up till now, he is applying N825 per litre. But I don’t know if it will be adjusted to N825/l in the evening or tomorrow.” Maigandi emphasised that the availability of petrol is guaranteed, and marketers should adapt to the changing prices.

The differing views from PETROAN and IPMAN highlight the challenges faced by oil marketers in Nigeria, particularly with regards to price predictability and market stability. While PETROAN is concerned about the impact of the price adjustment on its members, IPMAN sees it as a step towards a more deregulated market.

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