Nigeria’s petroleum marketers have expressed concerns that the country cannot rely solely on Dangote Refinery to meet its daily Premium Motor Spirit (Petrol) consumption.
According to Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), the refinery’s daily production of 25 million liters is insufficient to satisfy Nigeria’s daily consumption of 50 million liters.
The Nigerian National Petroleum Company Limited (NNPCL) recently released a price list for Dangote Petrol, indicating a significant price hike to around N950 and N1,019.22 per liter in NNPCL outlets.
Gillis-Harry attributed the country’s inability to depend on Dangote Refinery to the high cost of its petrol and the limited quantity of supply.
He noted that Dangote Refinery’s production is less than one cargo, equivalent to 15,000 metric tonnes.
Gillis-Harry’s statement comes amid the controversy surrounding Dangote Refinery’s petrol price and the impending pump price hike.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported that Nigeria’s daily petrol consumption has surged to 50 million liters, up from 46.38 million liters in July 2023.
This increase has raised concerns about the country’s ability to meet its petrol demands.
The situation is further complicated by the return of smuggling activities fueled by subsidy payments.
Industry experts argue that deregulating petrol pricing and allowing the market to determine the pump price could help address the scarcity and smuggling issues.
However, with NNPCL enjoying sole importer status and advantageous foreign exchange rates, marketers struggle to compete.
