Fatshimetrie: Current Situation of Fuel Retailers in Nigeria
According to recent developments in the Nigerian oil sector, a major change is taking place with the agreement allowing major fuel retailers to start off-take of premium petrol from the Dangote Petroleum Refinery. This decision was made by the Nigerian National Petroleum Company Limited (NNPCL), which has become the sole retailer of the refinery’s petrol, with the first tranche of 16.8 million litres already off-taken by a retail entity of the NNPCL.
Despite this arrangement, some major retailers, including 11 Plc, have started off-take of the product for distribution in their outlets in Lagos and other parts of the country. However, it appears that independent retailers are yet to be included in this amended arrangement, raising questions about transparency and fairness in the sector.
In a recent interview, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Garima, confirmed that only NNPCL has access to Dangote fuel and that they supply most of the products to their retail outlets. The independent marketers are waiting for the NNPCL to fix the new price of the petroleum products before they can purchase them. They are still charging at the previous rate of N875 per litre, due to unpaid stocks during this transition period.
In the face of this development, the marketers are expressing their willingness to import fuel to remain competitive in the market. They are also calling on the Federal Government to fully open up the sector to all players, stressing the need for more transparency and fair competition.
Also, in the interest of transparency and fairness, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, stressed the need for more information on the new arrangement with major marketers. He highlights the importance of knowing the pricing framework and other details, while calling for a clear involvement of the NNPCL in this new dynamic.
Overall, this transition in the fuel distribution sector in Nigeria opens up new opportunities and raises important issues in terms of transparency, competition and opening the market to independent players. It is essential that all stakeholders work together to ensure a more equitable and sustainable petroleum sector for the future of the country.