PETROL marketers say they are not buying from Dangote Petroleum Refinery because its price is higher than that of the imported premium motor spirit (PMS).
According to three petrol marketers who spoke with Economy Post, Dangote Petroleum Refinery’s price is between N7 to N8 per litre higher than the cost of imported premium motor spirit (PMS), wondering why everybody would urge them to buy a product that was not competitive in terms of price.
Dangote’s claim
On October 29, President of Dangote Group, Mr Aliko Dangote, had told State House correspondents in Abuja that marketers were not buying his petrol, claiming that about 500 million litres had not been taken up by retailers.
“As we speak today, we have 500 million liters in our tanks. So, with 500 million liters in our tanks, even if there’s no production from anywhere or no imports, this will take the country more than 12 days, with no imports, with no production, nothing.
READ ALSO: NNPC still pays PMS subsidies despite denials, sells Dangote petrol at N766/litre to marketers
“We have enough supply of crude, and we can actually produce much more than 30 million liters every day. At full capacity, we can even supply whatever is being consumed.”
He said his refinery was ready to satisfy the Nigerian market, claiming he was putting his name on the line to give Nigeria’s President Bola Tinubu his word.
“Yes, we will be able to supply the market a minimum of 30 million per day, and we’ll be ramping up production. So, we’re ready. We’re more than ready. One thing that you have to understand is that we are producers. I have a refinery, I’m not in the business of retail. If I am in the business of retail, then you hold me responsible. But what I’m saying is that the retailers should please come forward and pick. If they don’t come forward and pick, what do you want me to do?” he asked.
Mr Dangote further said he was not expecting either the Nigerian National Petroleum Company (NNPC) or marketers to stop importing, pleading that they should come and pick his petrol as his refinery had what they needed.
“It’s costing me money every day. If I will be able to collect the naira, I can actually charge somebody 32 percent in interest. So, right now, that’s what I’m losing. And you are talking about 500 million liters, you know, I mean, we don’t print money. But the issue is that if they come and collect the products, then you will not see any queues at the filling stations.
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“We have what it takes for them to come and collect. We are not retailers, we also don’t have trucks to send the products to the filing stations. We have a factory, we have where they can load. If they come and pick the one. They have been doing that with importation. So, if they’ve been doing that with importation, if it’s true, they are doing 55 million, I see no reason why they won’t come and collect our own and distribute,” Mr Dangote said.
Marketers disagree
However, marketers who spoke with Economy Post have disagreed with Mr Dangote, noting that his price is higher than that of imported products.
“He would not be begging us to buy if his price were competitive. His price is about N7 or N8 higher than the imported price. If his price were cheaper, he would not have been begging anybody to buy petrol from him. We are businesspeople and we go where prices are cheaper,” a marketer, who has over 70 filling stations across Nigeria, said.
An independent marketer, who would not want his name or that of his business in print, repeated the same logic, noting that no business owner would leave places with lower prices and patronise where prices were higher – as far as both places had equally quality products.
“I don’t so much like playing with people’s emotions. It is just about pricing. If Dangote petrol is the same price as the imported PMS, I would gladly buy. We are not asking him to sell below the imported price but to ensure they are on a par,” the marketer noted.
NNPC, Dangote petrol politics
On October 30, the Independent Petroleum Marketers Association of Nigeria (IPMAN) asked Dangote refinery to consider direct sales of petrol to address ongoing supply challenges causing delays in loading at the Nigerian National Petroleum Company (NNPC) depots.
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“We have over N40 billion under the NNPCL’s custody. We cannot source this product. And just recently, there are some of my marketers that the NNPC sent to go and load in Dangote refinery. Those marketers stayed with their trucks over four days,” said President of IPMAN, Mr Abubakar Maigandi on a television programme.
“My marketers are always looking the way they can get this product direct. So I am very surprised when I heard the President of Dangote Refinery say he has over 500 million liters of Premium Motor Spirit (PMS). If he can be able to sell this product to us direct, definitely we are ready to buy the product because we have to pay before we pick.”
On October 31, Dangote Petroleum Refinery responded to IPMAN’s claim, saying that it was yet to receive authorisation from the NNPC to supply PMS to members of IPMAN.
Dangote Group’s Chief Branding and Communications Officer, Mr Anthony Chiejina, said in a statement that IPMAN members paid NNPC and the national oil company had not authorised Dangote to sell them.
The statement entitled, ‘IPMAN: Setting the Record Straight,’ read, “Although discussions are ongoing with IPMAN, it is misleading to suggest that they (IPMAN members) are experiencing difficulties loading refined products from our petroleum refinery, as we currently have no direct business dealings with them. Consequently, we cannot be held responsible for any payments made to other entities.
“The payment in mention has been made through the Nigerian National Petroleum Company Limited, and not us. In the same vein, NNPCL has neither approved nor authorised us to release our Premium Motor Spirit to IPMAN.”
Mr Chiejina noted that Dangote refinery “can meet the nation’s demand for all petroleum products, including petrol, diesel, and aviation fuel. At present, we can load 2,900 trucks per day and we have also been evacuating petroleum products by sea.”
READ ALSO: Marketers ask FG to stop Dangote refinery petrol monopoly
“In the interest of our country, we encourage all stakeholders to collaborate and heed the advice of President Tinubu, while promoting a unified approach, rather than engaging in media conflicts and needless propaganda,“ the statement added.
However, another marketers said, “This is just politics as the main issue is pricing. Dangote sells at N977 per litre, but we import at N970 per litre. Which would you prefer if you were a marketer?”
