Fuel Marketers Warn Dangote Refinery Cannot Supply Nigeria Alone
Fuel Marketers Warn Dangote Refinery Cannot Supply Nigeria Alone
Major oil marketers have said the Dangote Petroleum Refinery cannot meet Nigeria’s fuel needs on its own, despite recent price cuts and increased local supply.
The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said relying on a single refinery is already causing supply and logistics problems across the downstream sector.
Isong explained that although all MEMAN members buy petrol from the Dangote refinery, the refinery cannot always supply marketers with the quantity they need, at the time they need it, or in the way they want it delivered.
He said supply needs differ among marketers, adding that depending on one location naturally creates bottlenecks, long queues, and delays.
According to him, some filling stations owned by major marketers are already dry due to supply challenges, even though petrol is generally available in the country.
Isong noted that when marketers cannot get fuel directly from Dangote, they are forced to import or buy from third parties, often at higher prices.
He described the current fuel market as chaotic, saying pricing volatility has made planning very difficult for marketers.
Despite reports of dry stations, Isong dismissed fears of fuel scarcity, insisting that Nigeria currently has excess petrol in the system and more imports are on the way.
He added that many marketers are avoiding bulk purchases because sudden price drops could lead to huge losses.
Last week, the Dangote refinery reduced its gantry price from about N828 per litre to N699, forcing pump prices down to around N739 per litre at some filling stations.
The price cut triggered a price war, with motorists boycotting stations selling fuel at higher prices, forcing others to slash prices, sometimes below their cost.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria said any station that refuses to reduce prices will lose customers, stressing that pricing now determines patronage.
Dangote refinery officials, however, maintain that the plant has the capacity to meet Nigeria’s daily fuel demand, saying it currently supplies about 50 million litres of petrol daily into the local market.
