Oil Marketers Demand Clearer Path To Buy from Dangote Refinery As Petrol Price Soars

Oil Marketers Push for Direct Purchase from Dangote Refinery

In a bid to address Nigeria’s reliance on imported fuel, oil marketers are pressing for a direct business relationship with the Dangote Refinery, Africa’s largest refinery.

They expressed frustration over the refinery’s apparent prioritisation of import-licensed marketers and requested a structured purchasing process.

Oil Marketers Call for Clarity

The President of the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, voiced concerns over recent challenges in obtaining refined products from the Dangote refinery, located in Lekki, Lagos. “We want a business arrangement,” he emphasised. “We can’t just show up and buy. There has to be a proper meeting to discuss the process.”

Gillis-Harry’s remarks came in response to statements made by Dangote Group President Aliko Dangote, who, on Tuesday, called for oil marketers to start sourcing locally to reduce import dependency. “I have a refinery,” Dangote said. “If the retailers don’t come forward to pick up, what do you expect me to do? We have what they need, and I’m ready to supply.”

Demand for Refinery’s Response

According to Gillis-Harry, PETROAN had reached out to the refinery multiple times since 2022. “We’ve tried for a long time to meet with them, but there’s been no response,” he explained. “They keep saying, ‘we will meet,’ but that meeting hasn’t happened. Our members are ready to work with Dangote; we just need clarity on the process.”

He noted that a direct purchasing channel with the refinery would be mutually beneficial: “We represent a productive mix of businesses nationwide. If Dangote has the product, we are ready to buy it. But for this to work, the refinery needs to be clear on its terms.”

IPMAN Voices Concerns Over Delays

Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted issues faced by his association’s members, who recently struggled to access fuel despite fulfilling payment requirements. “We’ve waited for four days, but our members haven’t been able to load products. If Dangote’s refinery has 500 million liters in stock, as stated, then access shouldn’t be this hard,” Maigandi said on Channels TV’s Sunrise Daily.

While Dangote confirmed that his refinery could meet local demands and sustain Nigeria’s consumption for over 12 days, Maigandi urged Dangote to simplify procedures by allowing independent marketers to register directly with the refinery.

Challenges Due to Import Licenses

Reports indicate that the Dangote refinery prioritises sales to marketers with valid import licenses, potentially due to its location in a free trade zone. “Yes, they’ve started selling, but only to marketers who hold import licenses,” said a source close to the matter, speaking anonymously.

This situation has led PETROAN and IPMAN members to seek import licenses, hoping it would ease access. National Vice President of IPMAN, Hammed Fashola, revealed that the association’s application for an import license is under review by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). “We are doing everything needed to secure the license,” he confirmed.

READ ALSO: Oil Marketers Call For Reduction In Dangote Diesel Price To N850/Litre

Refinery’s Production Capacity and Stock

During his recent meeting with President Tinubu, Dangote reassured that the refinery’s stockpile could fulfill national demand, producing over 30 million liters of fuel daily at full capacity.

However, some marketers argue that if the stock is indeed available, they should not face significant hurdles to access it.

Navigating the Logistics

Oil marketers indicated the need for additional logistical support to make distribution more effective. Some sources close to the refinery suggested that efforts are underway to expand capacity to accommodate more buyers. However, Dangote officials clarified that they are working through categories, starting with import license holders due to the refinery’s status within a free trade zone.

In addition to the fuel issues, sources noted a recent increase in maritime imports of petroleum products. The Nigerian Ports Authority reported the arrival of two vessels carrying over 41 million litres of petrol at Lagos’ Tincan Island Ports, underscoring Nigeria’s ongoing reliance on imported fuel.

Path Forward for Dangote and Oil Marketers

With both sides showing willingness, stakeholders believe a clearer process is needed to address the demand for domestically refined fuel. Gillis-Harry emphasised, “We want to sit down with Dangote, create a transparent deal, and start buying immediately. This will reduce the nation’s import bill and keep our businesses running smoothly.”

Meanwhile, Maigandi called for open dialogue with the refinery, stating, “We are ready to purchase directly if they’re willing to sell. Let’s set aside delays and work toward a common goal of meeting Nigeria’s fuel needs.”

As Dangote and oil marketers continue discussions, clarity on transaction terms may pave the way for a new era in Nigeria’s fuel distribution network, reducing reliance on imports and stabilising local supply chains.