The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained why independent marketers are unable to purchase petrol directly from Dangote Refinery.
During a press conference in Lagos on Tuesday, the association’s president, Festas Osifo, stated that the issue arises from a pricing disparity between the costs at which the Nigerian National Petroleum Company Limited (NNPCL) acquires petrol and the prices it sells to independent marketers.
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Osifo elaborated that while NNPC may purchase petrol at around N950, it sells it to independent marketers for approximately N700, resulting in a significant shortfall that NNPC must manage.
He pointed out that major marketers can buy directly from Dangote at a price similar to NNPC’s purchase but would then need to sell it at a higher rate, potentially exceeding N1,000. Consequently, independent marketers prefer to source from NNPC to benefit from the lower prices.
Osifo also highlighted that some crude oil is tied to loan repayments, which restricts the supply available for local consumption.
He warned that the ongoing trend of divestment by International Oil Companies (IOCs) presents both risks and opportunities for Nigeria, including possible reductions in foreign direct investment and production levels.
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