₦airaland Forum

Management of Dangote Refinery has confirmed Premium Motor Spirit (PMS) also called petrol purchase deal with key petroleum marketers.

In a telephone conversation with group chief branding and communications officer of Dangote Group, Anthony Chiejina,confirmed to LEADERSHIP Weekend that key marketers have been buying petrol from the facility, but refused to speak on pricing.

Though Chiejina did not name the companies involved in the deal he said the supply had commenced for a period now.

Also as a way of confirming the development, the Major Energies Marketers Association of Nigeria (MEMAN), in response to the current market pressure, said it has significant stocks of products in its tanks.

The Association also said it has access to significant stocks of products in the tanks of its suppliers including Dangote Refinery and NNPC Trading Limited and a clear line of sight on future supplies for all petroleum products.

The clarification is coming following perceived tightness in the petroleum supply market.
According to a report, Dangote Refinery and Petrochemical Company Ltd is selling petrol to oil marketers at 1,014.75 per litre.

The N1,014 75 per litre price sold by Dangote to oil marketers is broken down into two major cost components.

Based on the component, Dangote pegged petrol at N990 per litre with an additional variation cost of 2.5 per cent, which amounted to N24.75 per litre.

The high price of petrol from Dangote Refinery contradicted expectations from Nigerians that the “crude-for-Naira” deal between the federal government and Dangote Refinery would reduce pump prices starting October 1, 2024.

Last month reported how independent oil marketers adjusted the pump price of petrol to reflect the price at which they bought the product from Dangote Refinery and Petrochemical Company.

Also, many filling stations had adjusted their pump price of petrol to an average of N1,200 per litre.

Meanwhile the MEMAN noted that the benefit of diversification of supply and deregulation is that diligent marketers can plan and book in advance for their supply needs and make adequate adjustments and alternative arrangements in advance to avoid product outages. MEMAN does not envisage any outages of petroleum products in the immediate future or in the near term.

“We urge the public not to panic-buy petroleum products, as our supply efficiency continues to improve, and logistics optimisation begins to set in.

“MEMAN members shall continue to do all within their power to optimise their supply and logistics costs and efficiency to ensure the highest level of availability, accessibility and affordability for their customers in the increasingly competitive environment.” it said in a statement.

koxyz:
Everything about the refinery is shrouded in secrecy, may God help Nigeria.

CodeTemplarr:
Really? It is the NNPC that's behind any secrecy.
Is Dangote cement, spaghetti, sugar, flour, or diesel secret? How come only petrol is?
The NNPCL is the one that gives him crude and they have used that to box him into a corner by forcing him to sell all local market petrol from his refinery to them alone.

Ikaeniyan0:
NNPCL is not giving him the fuel, he's buying it from NNPCL, it's not for free. NNPCL is not dictating price to Dangote.

CodeTemplarr:
They are giving him at a cost thats redeemable by money and loyalty.

dre11:
https://leadership.ng/dangote-major-marketers-confirm-product-purchase-deal/

CodeTemplarr:
Really? It is the NNPC that's behind any secrecy.
Is Dangote cement, spaghetti, sugar, flour, or diesel secret? How come only petrol is?
The NNPCL is the one that gives him crude and they have used that to box him into a corner by forcing him to sell all local market petrol from his refinery to them alone. He is only fulfiling the agreement.
As it is, it is NNPCL thats fixing prices for marketers then approving their trucks for pick up of petrol from the refinery.

In bed with NNPCL is OVH. OVH is largely Tinubu empire and they get a cut for so many of the litres headed for the nigerian market. If they can force cost down and still have a cut per litre, when the marketers buy through them from Dangote, then they satisfy local market, smuggling out into west African market becomes inevitable and that means more earning for whoever is getting a cut per litre of petrol going through the Nigerian market.

The first step in resolving the petrol supply chain cartel curse, is electing leaders with no bias towards the petrol cartel.

dre11:
https://leadership.ng/dangote-major-marketers-confirm-product-purchase-deal/

CodeTemplarr:
Really? It is the NNPC that's behind any secrecy.
Is Dangote cement, spaghetti, sugar, flour, or diesel secret? How come only petrol is?
The NNPCL is the one that gives him crude and they have used that to box him into a corner by forcing him to sell all local market petrol from his refinery to them alone. He is only fulfiling the agreement.
As it is, it is NNPCL thats fixing prices for marketers then approving their trucks for pick up of petrol from the refinery.

In bed with NNPCL is OVH. OVH is largely Tinubu empire and they get a cut for so many of the litres headed for the nigerian market. If they can force cost down and still have a cut per litre, when the marketers buy through them from Dangote, then they satisfy local market, smuggling out into west African market becomes inevitable and that means more earning for whoever is getting a cut per litre of petrol going through the Nigerian market.

The first step in resolving the petrol supply chain cartel curse, is electing leaders with no bias towards the petrol cartel.

dre11:
https://leadership.ng/dangote-major-marketers-confirm-product-purchase-deal/