The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has disclosed the reason independent marketers are unable to purchase petrol directly from Dangote Refinery.
According to the Association, the issue stems from a price disparity between the costs at which the Nigerian National Petroleum Company Limited (NNPCL) buys PMS and the prices it sells to independent marketers.
Speaking at a press conference in Lagos, on Tuesday, the Association president, Festus Osifo explained that NNPC may purchase PMS at approximately ₦950, but sell it to independent marketers at around ₦700, leading to a significant shortfall that NNPC manages.
He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over ₦1,000.
Osifo stated that independent marketers prefer to purchase from NNPCL to take advantage of the lower prices.
He noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.
He also cautioned that the ongoing trend of divestment by International Oil Companies (IOCs) poses both risks and opportunities for Nigeria, including potential reductions in foreign direct investment and production levels.