We will import fuel if the landing cost is cheaper than Dangote’s price— Independent marketers

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said it will import Premium Motor Spirit (PMS), also known as petrol, if the landing cost is cheaper compared to that of the Dangote Refinery.

The oil marketers also expressed concerns over the delay in announcing the price of PMS produced by the Dangote Petroleum Refinery, reports The PUNCH.

Abubakar Maigandi, National President of IPMAN, highlighted that the landing cost of imported PMS currently stands at approximately N1,120 per litre, adding that if the price from the Dangote Refinery exceeds this, marketers will continue to import petrol into the country.

“If the landing cost is cheaper than what the Dangote Refinery will sell, then we will see how to bring in the product,” Maigandi told our correspondent.

“It is now an open market, so anywhere we see a cheaper rate with good quality, we will buy from there. We don’t know the price of Dangote PMS yet, but we are discussing it with our foreign partners.”

Maigandi emphasised that allowing multiple importers ensures competition and availability in the market.

“Once everybody is allowed to bring in the product, there will be enough competition, and this will drive prices down. Importers will try to sell their stock and replenish it to stay profitable.”

Meanwhile, the group President of Dangote Industries Limited (DIL), Aliko Dangote, had, during the official rollout of petroleum products from the 650,000 barrels per day refinery, disclosed that the company is waiting for the NNPCL on pricing.

According to the billionaire businessman, there is an arrangement on pricing, designed and approved by the President Bola Tinubu-led Federal Executives Council (FEC). He added that once that is finalised, the products from the refinery will hit the market through the NNPCL as the sole buyer from the refinery.

However, the spokesperson of the NNPCL, Olufemi Soneye, said the nation’s oil company will only purchase Dangote’s petrol if it is cheaper than international alternatives.

“The NNPC Ltd will only fully off-take PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria,” Soneye stated.

He also emphasised that the NNPC is not mandated to serve as the sole distributor for domestic refineries, reinforcing a free market system for marketers.