Oil marketers are calling for a revision of the pump price for Automotive Gas Oil (diesel) produced by the Dangote Petroleum Refinery to be between N700 and N850 per liter. This request comes as operators plan to convene with the refinery’s management next week.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), the largest downstream marketing association, voiced this demand, citing the high price of N1,225 per liter set by the indigenous refinery. They argue that since diesel is produced domestically in Nigeria, it should be priced lower.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria called for a reduction in the price of Dangote diesel. Both groups are seeking the intervention of the Federal Government and urge the refinery’s management to consider the high logistical costs involved in transporting the product from Lagos, where the refinery is situated.
The oil marketers highlighted that diesel imported by some traders is currently being sold at N1,250 per liter due to the appreciation of the naira against the dollar. They believe this underscores the need for the Dangote refinery to lower its price, especially considering that its diesel production doesn’t incur vessel costs, import charges, or other expenses associated with importing the commodity.
In recent developments, separate meetings were held by oil marketers’ associations, including IPMAN and the Independent Petroleum Marketers Association of Nigeria, to discuss the pricing of petroleum products from the refinery.
The Dangote refinery commenced diesel sales to the domestic market in late March 2024, with a minimum sale of one million liters to each registered oil marketer. Reports indicate that the product was sold at prices ranging from N1,225 to N1,300 per liter, depending on the purchase volume.
Chief Chinedu Ukadike, the National Public Relations Officer of IPMAN, commended the refinery for its production but urged a downward review of the product’s cost. He emphasized that with a domestic refinery in operation, the price of Dangote diesel should ideally be cheaper than imported alternatives, considering the logistical savings associated with local production.